European equities were marginally lower on Wednesday as they awaited news from the US midterm elections and, perhaps more consequentially, anticipated a US inflation reading due on Thursday.
The FTSE 100 index closed down 9.89 points, 0.1%, at 7,296.25. The FTSE 250 ended down 48.89, 0.3%, at 18,649.00 and the AIM All-Share closed down 4.78 points, 0.6%, at 826.35.
The Cboe UK 100 ended down 0.2% at 729.77, the Cboe UK 250 closed down 0.3% at 16,094.89, and the Cboe Small Companies ended down 0.2% at 12,516.62.
In European equities on Wednesday, the CAC 40 in Paris ended down 0.2%, while the DAX 40 in Frankfurt ended 0.2% lower.
Stocks in New York were lower at the London equities close, with the DJIA down 0.6%, the S&P 500 index down 0.7%, and the Nasdaq Composite down 1.0%.
In the US, votes from the midterm election were still being tallied.
The 'red wave' that some had expected to sweep the Republicans into power in both houses of Congress has failed to materialise, as the Democrats put in a stronger-than-expected defence.
With a majority of Tuesday's races called, Republicans seem on track to reclaim the House of Representatives for the first time since 2018. The Senate is still in play, with forecasts tentatively leaning Democratic.
However, investors were more focused on the US consumer inflation print due on Thursday.
'What might have greater impact on markets than the latest political ructions across the Atlantic are the inflation figures due out in the US tomorrow as traders play their usual game of trying to guess when the Fed might finally pivot away from rate rises,' AJ Bell's Russ Mould said.
The US CPI will be released at 1330 GMT. It is expected to show inflation cooled slightly to 8.0% from 8.2% annually. With inflation still at elevated levels, a small fall is unlikely to deter an already hawkish Federal Reserve.
However, a hotter-than-expected reading could embolden the central bank to enact larger rate hikes or prolong monetary tightening at its meetings in the coming months.
The dollar was stronger ahead of the inflation figures.
The pound was quoted at $1.1416 late Wednesday, down from $1.1566 at the London equities close on Tuesday. The euro traded at $1.0049, down from $1.0075. Against the yen, the dollar was trading at JP¥146.00, up from JP¥145.49.
A barrel of Brent fell to $93.74 on Wednesday afternoon in London from $97.81 late Tuesday, as the prospect of China easing up on its zero-Covid measures faded.
'A continuing slide in oil prices, as initial excitement about a reopening of the Chinese economy has waned, helping to put energy stocks under continued pressure,' said AJ Bell's Mould continued.
The lower price of Brent caused shares in oil majors Shell and BP to fall 2.2% and 0.6% respectively.
Elsewhere in the FTSE 100, Flutter Entertainment fell 2.8%, despite a fairly strong trading update.
For the third quarter of 2022, revenue rose 31% year-on-year to £1.89 billion from £1.44 billion. Sports revenue increased by 26% to £1.14 billion from £906 million, while Gaming revenue rose by 40% to £748 million from £534 million a year ago.
In particular, US revenue during the period amounted to $598 million, up significantly from $280 million a year earlier. UK & Ireland revenue rose 3.7% to $509 million from $491 million.
The Paddy Power owner lifted its US revenue guidance and said it has seen little sign of a slowdown so far this year, despite punters grappling with a cost of living crisis.
Bluechip insurer Aviva also fell 2.0%.
Aviva said total life sales in the first nine months of 2022 fell 1.7% year-on-year to £25.78 billion from £26.23 billion. However, General Insurance gross written premiums climbed 10% to £7.2 billion and
Its estimated solvency II shareholder cover ratio, a key measure of its financial strength, fell to 223%, from 234% at the end of the first half. Aviva did note, however, that its 'capital position remains well above the top-end of our target range'.
Highstreet retailer Next has agreed to buy the brand, domain names and intellectual property of Made.com's operating arm Made.com Design Ltd.
Made.com on Wednesday said it has appointed Zelf Hussain, Peter David Dickens and Rachael Maria Wilkinson of PricewaterhouseCoopers as administrators.
The stock is suspended from trading, with a cancellation expected in 'due course'. Made.com debuted on the London Main Market in June of last year, meaning it lasted less than a year and a half as a listed company.
'As had been widely speculated Next is buying the brand, website, and IP of failed furniture retailer Made.com as it enters administration. The deal shows that there was nothing wrong with the proposition as such, just the way the business was run,' said AJ Bell's Mould.
Next shares were 0.9% higher.
In London's midcaps, JD Wetherspoon shares fell 6.3%, as it said like-for-like sales in the early stages of its current financial year are ahead of pre-virus levels, but in the last five weeks, they have declined.
The Watford, England-based pub chain said that in the 14 weeks to November 6, like-for-like sales rose 9.6% year-on-year and by 0.4% against a pre-Covid comparative from three years earlier. However, it noted that costs such as labour and food 'were substantially higher'.
In the final five weeks of that period, sales are down 1.1% from three years earlier.
ITV lost 5.7%, as weaker advertising revenue hit its share price.
For the nine months that ended on September 30, the London-based television broadcaster and content producer said total external revenue was £2.52 billion, up 5.9% from £2.38 billion a year ago.
Total non-advertising revenue was £1.62 billion, up 13% from £1.43 billion. This represents over 50% of ITV's total revenue.
However, total advertising revenue was down 2.2% to £1.33 billion from £1.36 billion a year ago. For the third quarter alone, total advertising revenue was down 14%.
On AIM, Vela Technologies surged 50%
The investor in early stage technology firms noted that Conduit Pharmaceuticals Ltd plans to join the Nasdaq in the US through a merger with a special purpose acquisition company.
Conduit will merge with Murphy Cannon Acquisition Corp. The deal is expected to generate $149.7 million worth of proceeds for Conduit.
Vela holds an interest in the commercialisation of AZD1656, a possible Covid-19 treatment and one of Conduit's assets.
Gold was quoted at $1,713.97 an ounce at the equities close Wednesday, mostly flat from $1,712.35 at the London equities close on Tuesday.
In Thursday's economic calendar, in addition to the hotly anticipated US CPI reading, there's US unemployment figures at 1330 GMT. There is also Irish CPI at 1100 GMT.
Thursday will be a busy day in London's corporate calendar, with highlights including third quarter results from AstraZeneca, GSK spinoff Haleon, Endeavour Mining, and half-year results from 3i Group, B&M European Value Retail and WH Smith.
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