London open: Stocks edge lower ahead of Fed, UK jobs figures
Stocks in London nudged lower in early trade as investors erred on the side of caution ahead of the latest policy announcement from the Federal Reserve and some key UK jobs data.
At 0830 GMT, the FTSE 100 was down 0.3% to 6,948.23. Meanwhile, oil prices retreated after the American Petroleum Institute said late on Tuesday that in the week ended 9 December, there was a 4.68m barrel build in US crude inventory levels, versus a 1.5m draw expected.
West Texas Intermediate was down 1.2% to $52.36 a barrel and Brent crude was 1% lower at $55.15.
Accendo Markets analysts Mike van Dulken and Henry Croft said: “In focus today will be this evening’s US Fed policy update, not so much for the rate hike markets have already priced-in, more for the outlook that Fed Chair Janet Yellen offers for policy normalisation and how many hikes to expect in 2017.
“After last December suggesting four hikes in 2016 and yet still to deliver even one, it won’t want to over-promise again. Nor will it want to under-promise and surprise markets. Expect a cautious tone that suggests slow and steady. Perhaps a couple of hikes that could be downgraded to just one or upgraded to three without generating too much fuss.”
The UK unemployment rate, average earnings and claimant count are due at 0930 GMT. In the US, retail sales and industrial production are at 1330 GMT and 1415 GMT, respectively, while business inventories are at 1500 GMT.
The FOMC rate announcement is at 1900 GMT.
The UK unemployment is expected to remain at 4.8%, while average earnings are expected to remain at 2.3%.
In corporate news, software product group Micro Focus International was in the black after reporting a rise in revenue and pre-tax profit for the first half.
Dixons Carphone fell despite reporting a bigger-than-expected jump in first-half profits and upping its dividend.
LondonMetric nudged lower as it said it has conditionally exchanged contracts to lets its distribution warehouse in Omega South, Warrington.
Capita was under the cosh as Jefferies cut the stock to ‘hold’ from ‘buy’.
Oil and gas services company Wood Group ticked down as it reaffirmed its full-year forecast for earnings before interest, taxes and amortisation but cautioned that market conditions are likely to remain challenging in 2017.
Online retailer Boohoo.com rallied after upgrading its guidance for full-year 2017 on the back of a strong trading performance, as it announced the acquisition of a majority stake in fashion brand PrettyLittleThing.
Market Movers
FTSE 100 (UKX) 6,948.23 -0.29%
FTSE 250 (MCX) 17,658.95 -0.32%
techMARK (TASX) 3,285.12 -0.24%
FTSE 100 - Risers
Anglo American (AAL) 1,209.50p 2.63%
Micro Focus International (MCRO) 2,178.00p 2.25%
ITV (ITV) 196.20p 2.13%
Hargreaves Lansdown (HL.) 1,232.00p 1.40%
Sainsbury (J) (SBRY) 249.10p 1.34%
Tesco (TSCO) 207.45p 1.27%
BHP Billiton (BLT) 1,378.00p 1.21%
Whitbread (WTB) 3,501.00p 1.18%
Rio Tinto (RIO) 3,208.50p 1.18%
Johnson Matthey (JMAT) 3,104.00p 1.07%
FTSE 100 - Fallers
Capita (CPI) 436.00p -3.63%
Dixons Carphone (DC.) 356.00p -2.92%
Centrica (CNA) 216.40p -2.13%
SSE (SSE) 1,499.00p -1.70%
Barclays (BARC) 226.20p -1.69%
Babcock International Group (BAB) 918.00p -1.50%
Persimmon (PSN) 1,674.00p -1.47%
Reckitt Benckiser Group (RB.) 6,599.00p -1.46%
United Utilities Group (UU.) 886.00p -1.45%
3i Group (III) 680.50p -1.38%
FTSE 250 - Risers
Paysafe Group (PAYS) 319.40p 4.48%
Kaz Minerals (KAZ) 400.00p 3.17%
CMC Markets (CMCX) 98.00p 3.16%
Vedanta Resources (VED) 953.00p 2.53%
Big Yellow Group (BYG) 673.00p 2.51%
Acacia Mining (ACA) 393.30p 2.34%
Ladbrokes Coral Group (LCL) 118.40p 2.07%
B&M European Value Retail S.A. (DI) (BME) 265.80p 1.92%
Aveva Group (AVV) 1,818.00p 1.62%
Allied Minds (ALM) 425.00p 1.17%
FTSE 250 - Fallers
IP Group (IPO) 156.00p -3.11%
Berkeley Group Holdings (The) (BKG) 2,741.00p -2.73%
Fidessa Group (FDSA) 2,218.00p -2.42%
Rank Group (RNK) 190.70p -2.41%
JD Sports Fashion (JD.) 330.20p -2.16%
NCC Group (NCC) 180.20p -1.80%
International Personal Finance (IPF) 163.70p -1.68%
Daejan Holdings (DJAN) 6,145.00p -1.68%
Hansteen Holdings (HSTN) 107.60p -1.56%
RIT Capital Partners (RCP) 1,823.00p -1.46%