London open: Stocks little changed as investors mull earnings, eye Fed

London stocks were little changed at the open on Wednesday as investors sifted through a raft of earnings and looked ahead to the latest policy announcement from the US Federal Reserve.

At 0900 BST, the FTSE 100 was just 0.1% firmer at 7,000.75. Overnight, earnings from US tech giants Apple, Microsoft and Alphabet all came in ahead of expectations.

As far as the Fed is concerned, CMC Markets analyst Michael Hewson said Wednesday’s meeting is unlikely to change the overall narrative when it comes to the timing of a taper, but it could offer an insight into whether some of the recent hawkishness from the likes of Bullard and Bostic is starting to spread to other members of the FOMC.

"The prevailing narrative appears to be one of a greater concern about the employment situation than the big rise in prices that we are currently seeing in some of the latest economic data.

"New York Fed President John Williams is one member concerned about the lacklustre participation rate, given where it was pre-pandemic at 63.4%. Since the June payrolls report little has changed when it comes to the US economy, with most expectations that the Fed is set to remain on autopilot until Q4 whatever inflation does. It seems unlikely that today’s meeting will change that perception."

In equity markets, Barclays rallied to the top of the FTSE 100 after it smashed first-half profit estimates as it released £700m in impairments, resumed dividends and announced a £500m share buyback. The bank reported pre-tax profit of £5bn for the six months to June 30, well above the consensus forecast of £4.1bn, and up from £1.3bn.

St James’s Place was higher after it reported a jump in its first-half underlying cash result amid a sharp increase in funds under management.

Precious metals miner Fresnillo shone after saying it was on track to meet its full-year targets as second-quarter silver production rose 18%.

Broadcaster ITV was up as it reported rise in interim profit and revenue and said it was "emerging from the worst effects of the pandemic", with a recovery in advertising revenues.

Wizz Air flew higher after the budget airline reported a widening of its losses for the first quarter as it continues to be hit by pandemic restrictions, but struck an upbeat note on summer capacity and said it expects to be the first major European airline to fully recover capacity to pre-Covid-19 levels.

Airlines more broadly were in the black, with British Airways owner IAG and easyJet also up after the government said double-jabbed ex pats were free to travel to England without having to quarantine from 16 August.

Lancashire was in the black as the insurer swung to a profit in the first half as gross premiums written jumped 40%.

Luxury car maker Aston Martin gained after saying that first-half losses narrowed as revenues surged, thanks in part to its first sport utility vehicle, the DBX.

On the downside, miners lost ground even as Rio Tinto posted its highest ever interim profit, with BHP, Rio and Glencore all down.

Market Movers

FTSE 100 (UKX) 7,000.75 0.07%
FTSE 250 (MCX) 23,008.37 0.57%
techMARK (TASX) 4,478.42 0.72%

FTSE 100 - Risers

Barclays (BARC) 178.10p 5.15%
St James's Place (STJ) 1,575.50p 4.48%
International Consolidated Airlines Group SA (CDI) (IAG) 181.64p 3.60%
Fresnillo (FRES) 779.20p 3.34%
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,382.00p 2.65%
Intertek Group (ITRK) 5,590.00p 2.23%
Compass Group (CPG) 1,515.00p 2.09%
Smith & Nephew (SN.) 1,550.50p 1.91%
Rolls-Royce Holdings (RR.) 100.12p 1.88%
Land Securities Group (LAND) 711.20p 1.86%

FTSE 100 - Fallers

BHP Group (BHP) 2,276.50p -1.73%
HSBC Holdings (HSBA) 397.05p -1.55%
Croda International (CRDA) 8,144.00p -1.48%
Reckitt Benckiser Group (RKT) 5,625.00p -1.32%
Auto Trader Group (AUTO) 641.00p -0.93%
Rio Tinto (RIO) 5,990.00p -0.84%
Ferguson (FERG) 10,085.00p -0.79%
Evraz (EVR) 617.20p -0.77%
Ashtead Group (AHT) 5,588.00p -0.75%
Glencore (GLEN) 321.20p -0.74%

FTSE 250 - Risers

FirstGroup (FGP) 87.55p 3.92%
Lancashire Holdings Limited (LRE) 701.00p 3.77%
easyJet (EZJ) 881.00p 3.72%
Virgin Money UK (VMUK) 203.80p 3.61%
Meggitt (MGGT) 470.60p 3.57%
SSP Group (SSPG) 261.60p 3.52%
Wizz Air Holdings (WIZZ) 4,798.00p 2.98%
Genus (GNS) 5,575.00p 2.86%
Renishaw (RSW) 5,080.00p 2.71%
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,382.00p 2.65%

FTSE 250 - Fallers

RHI Magnesita N.V. (DI) (RHIM) 4,004.00p -6.01%
PureTech Health (PRTC) 327.00p -2.97%
Tyman (TYMN) 439.50p -1.35%
Spire Healthcare Group (SPI) 220.00p -1.35%
Dr. Martens (DOCS) 450.60p -1.18%
RIT Capital Partners (RCP) 2,545.00p -1.17%
HGCapital Trust (HGT) 390.50p -1.14%
Greencore Group (CDI) (GNC) 131.80p -1.05%
Clarkson (CKN) 3,125.00p -0.95%
Premier Foods (PFD) 111.00p -0.89%