Market overview: US GDP numbers spark volatility

1630:Close A much weaker than forecast reading on US GDP triggered a spike in volatility across various asset classes globally, spanning equities, foreign exchange and commodities. That comes ahead of this evening’s US Federal reserve policy meeting. Shares of industrial engineer Weir Group jumped after the company delivered a better-than-expected first quarter from minerals, its largest division. High street retailer Next cashed in after first-quarter sales rose 3.2%, ahead of the 0% to +3% growth guidance provided by the company in March. Greek 10-year bond yields rose by 71 basis points to 11.51%. FTSE 100 down 84.25 points to settle at 6,946.28 points.

14:21 Bill Hubard, Chief Economist at Bankor, has this to say on the latest US GDP data: “US growth, WHERE? The first release of 1Q US GDP was considerably lower-than-expected at ‘only’ 0.2% q/q saar This was even lower than out bearish scenario at 0.6%) annualized, but on initial reflection, this is not so much news, but ONLY confirmation of what we already knew about Q1. And to be honest, it could have been worse, at least it had a PLUS sign!!!!!!”

1330: First quarter US GDP growth slowed to an annualised 0.2% quarter-on-quarter pace after expanding at a 2.2% clip over the previous three months (consensus: 1%). Strength in the US dollar, strikes at West Coast ports, poor weather and a slump in investment within mining all combined to create a perfect storm.

1242: Shares of Intercontinental Hotels (IHG) moved higher after Starwood Hotels released their Q1 earnings of 65 cents (consensus: 56 cents) and announced they are to explore strategic alternatives.

1202: A note from Morgan Stanley, commenting on the US earnings season, said: "the season has barely begun but investor interest will soon fade...As far as earnings are concerned, the companies that tend to have the most “macro” influence are usually banks, industrials, and to a lesser extent tech. At this point the biggest names in those first two sectors have already posted results". So while plenty of companies are still to announce in the current wave, interest will wane - but worry not as a new reporting period, including Cisco and Macy’s, is just around the corner. The retailer earnings season will be "especially interesting to watch" given higher oil prices and the recent wage increases, particularly Macy's, Target on 20 May, with TJX and Walmart on 19 May.

0946: Commenting on Barclays' results, analyst Mike Tribitt at Numis said: "TNAV and CET 1 improved in spite of increased litigation and conduct provisions. Investment Banking performance was in-line with peers, with a substantial rebound in Equities and Macro. The increased FX provision, unaccompanied by further news-flow is rather troubling." Nonetheless, Tribitt kept his buy recommendation and 315p target price on the shares.

0920: The ECB has reportedly increased the amount on offer to Greek banks under its Emergency Liquidity Assistance facility by €1.4bn to €76.9bn.

0917: Stocks have started the morning largely unchanged following a mixed finish on Wall Street overnight. That comes ahead of this evening’s meeting of the US Federal Open Market Committee, with traders expected to be keeping a close eye on what the central bank makes of the most recent weak readings on GDP and dollar strength. Miners such as Antofagasta and BHP Billiton are weakest in the early going, while Next is heading up the gains on the leaderboard after the release of its latest financials. Barclays shares are down after the lender's first quarter figures but at the moment they are off their worst levels of the morning. downFTSE 100 down 1 point to 7,029.71 points.