London midday: Stocks slightly lower ahead of Powell speech
London stocks were still a little lower by midday on Thursday as investors eyed a key speech by Federal Reserve chairman Jerome Powell at the Jackson Hole symposium.
The FTSE 100 was down 0.2% at 6,033.86.
Spreadex analyst Connor Campbell said: "The Federal Reserve chief is set to speak at 2.10pm UK time, and will almost certainly dictate whether or not the US markets can hold onto the significant growth they have posted in August.
"Investors are looking for confirmation that the Fed is set to soften its stance on the 2% inflation target - a target more often than not missed since the financial crisis - following the conclusion of its long-term monetary policy framework review. Reports suggest the FOMC will now aim for an average of 2%, allowing the central bank to overshoot that target to counter months where the CPI reading is lower than desired.
"Something that could inform the market’s reaction is how much detail on the review - and the central bank’s future path - is announced today, and how much is saved for the Federal Reserve’s next official meeting in September."
In equity markets, aircraft engine maker Rolls-Royce fell sharply after saying it was selling its Spanish business as it sought to raise £2bn after reporting a large interim loss and scrapping its dividend due to the coronavirus pandemic. The company also announced the departure of chief financial officer Stephen Daintith.
Elsewhere, Homeserve was knocked lower by a downgrade to ‘equalweight’ at Morgan Stanley.
On the upside, WPP was at the top of the FTSE 100 despite saying it plunged to a £2.6bn first-half loss as revenue fell and the advertising company wrote down £2.7bn for the reduced value of its assets during the Covid-19 crisis.
Flutter Entertainment gained as it posted a 22% jump in pro-forma first-half revenues to £2.39bn for a 35% surge in earnings before interest, taxes, depreciation and amortisation to £684m.
OneSavings Bank and building materials supplier Grafton Group both rallied following first-half results.
Market Movers
FTSE 100 (UKX) 6,033.86 -0.19%
FTSE 250 (MCX) 17,767.39 0.08%
techMARK (TASX) 3,885.63 0.95%
FTSE 100 - Risers
WPP (WPP) 650.80p 4.29%
Aveva Group (AVV) 5,306.00p 4.12%
Fresnillo (FRES) 1,291.00p 3.07%
Compass Group (CPG) 1,181.00p 1.68%
Pennon Group (PNN) 1,029.50p 1.43%
GVC Holdings (GVC) 831.40p 1.39%
Flutter Entertainment (FLTR) 12,750.00p 1.35%
London Stock Exchange Group (LSE) 9,034.00p 1.32%
Barratt Developments (BDEV) 523.80p 1.28%
United Utilities Group (UU.) 844.60p 1.13%
FTSE 100 - Fallers
Rolls-Royce Holdings (RR.) 235.40p -6.96%
Homeserve (HSV) 1,286.00p -3.89%
Persimmon (PSN) 2,639.00p -1.90%
Standard Chartered (STAN) 385.00p -1.66%
HSBC Holdings (HSBA) 326.15p -1.64%
Legal & General Group (LGEN) 219.10p -1.48%
Hargreaves Lansdown (HL.) 1,635.00p -1.48%
Melrose Industries (MRO) 104.30p -1.23%
Phoenix Group Holdings (PHNX) 696.00p -1.14%
International Consolidated Airlines Group SA (CDI) (IAG) 203.90p -1.02%
FTSE 250 - Risers
OneSavings Bank (OSB) 303.00p 16.27%
Grafton Group Ut (GFTU) 791.00p 5.96%
Provident Financial (PFG) 243.20p 3.93%
Renishaw (RSW) 4,900.00p 3.33%
Ascential (ASCL) 310.20p 3.33%
Hochschild Mining (HOC) 240.60p 3.00%
Mediclinic International (MDC) 259.20p 2.61%
Spirent Communications (SPT) 296.00p 2.60%
Liontrust Asset Management (LIO) 1,315.00p 2.33%
Trainline (TRN) 404.00p 2.18%
FTSE 250 - Fallers
Capita (CPI) 30.82p -3.29%
Syncona Limited NPV (SYNC) 236.50p -2.87%
Bodycote (BOY) 562.00p -2.68%
Micro Focus International (MCRO) 299.00p -2.32%
Wood Group (John) (WG.) 232.80p -2.27%
Ultra Electronics Holdings (ULE) 2,346.00p -2.25%
Ninety One (N91) 218.60p -2.15%
Hiscox Limited (DI) (HSX) 770.00p -1.96%
Beazley (BEZ) 420.20p -1.87%
RHI Magnesita N.V. (DI) (RHIM) 2,636.00p -1.86%