London open: Stocks edge down ahead of Fed announcement
London stocks edged lower in early trade on Wednesday as investors eyed the latest policy announcement from the US Federal Reserve.
At 0845 BST, the FTSE 100 was down 0.3% at 7,537.54.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: "The beady eye of the Federal Reserve is keenly trained on soaring inflation and right now the central bank is set on bringing it down swiftly. It’s pretty much a given that there will be a fresh ratcheting up of rates announced by the Fed today, with expectations of a 0.5% rate hike. What is uncertain is just how hawkish the central bank will be in its forecasts and to what extent it will swoop on its $9 trillion balance sheet by offloading bonds.
"The worry winding through financial markets is that hunting down rampant inflation too aggressively could squeeze life out of the US economy, particularly as unemployment rates have only recently dropped back to pre-pandemic levels. But coming down hard on demand, when supply issues are fuelling much of the spiralling price rises, either through the war in Ukraine or China’s zero-Covid policy may not have the desired effect very quickly."
In equity markets, Direct Line slid after the insurance company reported lower gross premiums for the first quarter as new rules on pricing practices impacted results. Admiral also slumped.
Wetherspoons was in the red as the pub chain posted a dip in third-quarter sales and warned over rising costs but said it expects to break even this year as sales improve slowly.
On the upside, Flutter Entertainment rallied as it said group revenues grew IN the three months ended 31 March as the number of average monthly players rose by 15%.
Aston Martin Lagonda also gained after it reported a rise in adjusted core earnings amid strong retail demand and announced the appointment of former Ferrari boss Amedeo Felisa as chief executive.
Elsewhere, Johnson Matthey was boosted by an upgrade to ‘buy’ from ‘hold’ at Jefferies.
Market Movers
FTSE 100 (UKX) 7,537.54 -0.31%
FTSE 250 (MCX) 20,464.19 -0.28%
techMARK (TASX) 4,398.33 0.02%
FTSE 100 - Risers
Flutter Entertainment (CDI) (FLTR) 8,646.00p 4.29%
Entain (ENT) 1,528.50p 2.41%
ITV (ITV) 75.46p 1.15%
Standard Chartered (STAN) 572.40p 1.13%
HSBC Holdings (HSBA) 517.60p 0.94%
Intertek Group (ITRK) 5,048.00p 0.92%
Barclays (BARC) 152.36p 0.90%
3i Group (III) 1,311.50p 0.69%
Shell (SHEL) 2,230.50p 0.65%
BAE Systems (BA.) 771.40p 0.63%
FTSE 100 - Fallers
Admiral Group (ADM) 2,450.00p -4.33%
Kingfisher (KGF) 247.90p -2.52%
Rio Tinto (RIO) 5,508.00p -2.43%
SEGRO (SGRO) 1,176.50p -2.28%
Coca-Cola HBC AG (CDI) (CCH) 1,595.00p -2.15%
Fresnillo (FRES) 765.40p -2.12%
Associated British Foods (ABF) 1,566.50p -2.09%
Intermediate Capital Group (ICP) 1,496.50p -1.77%
B&M European Value Retail S.A. (DI) (BME) 493.70p -1.77%
Glencore (GLEN) 475.20p -1.72%
FTSE 250 - Risers
FDM Group (Holdings) (FDM) 1,058.00p 7.74%
Tullow Oil (TLW) 56.75p 2.53%
Aston Martin Lagonda Global Holdings (AML) 863.60p 2.13%
WH Smith (SMWH) 1,486.50p 2.06%
NB Private Equity Partners Ltd. (NBPE) 1,550.00p 1.97%
TR Property Inv Trust (TRY) 436.00p 1.87%
HarbourVest Global Private Equity Limited A Shs (HVPE) 2,520.00p 1.82%
888 Holdings (888) 196.90p 1.55%
Virgin Money UK (VMUK) 177.50p 1.52%
Energean (ENOG) 1,293.00p 1.49%
FTSE 250 - Fallers
Direct Line Insurance Group (DLG) 240.00p -6.07%
Wetherspoon (J.D.) (JDW) 722.00p -2.56%
Polymetal International (POLY) 250.10p -2.23%
Ferrexpo (FXPO) 161.60p -2.18%
JTC (JTC) 693.00p -2.12%
Tate & Lyle (TATE) 783.50p -2.06%
Tritax Big Box Reit (BBOX) 218.40p -1.97%
Currys (CURY) 92.20p -1.86%
Fidelity China Special Situations (FCSS) 246.50p -1.79%
National Express Group (NEX) 248.80p -1.74%