London close: Stocks maintain gains ahead of US Fed minutes
London stocks managed a positive finish on Wednesday, helped along by a strong showing in the mining sector, as investors eyed the release of the minutes from the latest Federal Reserve meeting.
The FTSE 100 ended the session up 0.71% at 7,151.02, and the FTSE 250 was 0.33% firmer at 22,970.24.
Sterling was in a mixed state, last trading 0.04% weaker against the dollar at $1.3794, while gaining 0.12% on the euro to €1.1687.
“Investor enthusiasm for US stocks appears to be waning, now that we are less than a week away from the start of earnings season,” said IG chief market analyst Chris Beauchamp.
“High-growth tech names have undergone a bit of a reversal today, and the Nasdaq in particular looks rather overextended in the short-term, after a straight-line rally since mid-May that has seen the index and the growth complex come back into fashion in spectacular form.
“It is a different story in Europe, where indices have generally been able to hold on to at least some of their gains, but with Wall Street struggling it will be tough for European markets to really establish the groundwork for a sustainable bounce.”
Beauchamp said the Fed minutes later in the global day should keep sentiment in check.
“Investors will be keen to see if the record of the meeting sheds any further light on the hawkish shift seen in the dot plot, even if some of that shift in outlook was walked back in the weeks following the FOMC’s latest decision.”
On the economic front, a survey released earlier showed that house prices dipped for the first time this year in June as the stamp duty holiday started to wind down.
According to the latest Halifax house price index, the average house price eased 0.5% in June, the first monthly decline since January.
On an annual basis, house price inflation was ahead 8.8%, although that was down on May’s 14-year high of 9.6%.
The average UK property price was now £260,358.
“With the stamp duty holiday now being phased out, it was predicted that the market might start to lose some steam entering the latter half of the year,” said Russell Galley, managing director of Halifax.
“It’s unlikely that those with mortgages approved in the early months of summer expected to benefit from the maximum tax break, given the time needed to complete transactions.”
In equity markets, miners Anglo American, Antofagasta, Glencore, BHP, and Rio Tinto were all firmer, adding 3.12%, 2.53%, 2.63%, 3.19% and 2.6% respectively, as copper and iron ore prices rose.
PageGroup rallied 2.95% as the recruiter lifted its 2021 guidance, while Redrow gained 3.15% after the housebuilder said it expected 2022 revenues to exceed £2bn, driven by a strong order book and completion of a private rental sector project in London.
On the downside, 888 Holdings was 6.54% weaker even as it said it expects adjusted annual core profit to be slightly higher despite higher costs and regulatory changes.
Shell reversed earlier gains to close down 0.08%, even after the oil giant said it plans to boost shareholder returns following a strong second quarter.
Private hospital operator Spire Healthcare lost 4.83% as it delayed a vote on its takeover by Australia’s Ramsay Health Care, after shareholders Fidelity International and Toscafund Asset Management reportedly rejected a final, improved offer.
Spire said it was adjourning the meetings after "a number of investors" requested "a short extension to the process to allow them to exercise voting rights".
Pub chain JD Wetherspoon fell 1.94% after saying it still expects to make a full-year loss as like-for-like sales have continued to fall despite easing Covid restrictions.
Market Movers
FTSE 100 (UKX) 7,151.02 0.71%
FTSE 250 (MCX) 22,970.24 0.33%
techMARK (TASX) 4,485.11 -0.01%
FTSE 100 - Risers
BHP Group (BHP) 2,201.50p 3.19%
Anglo American (AAL) 2,991.00p 3.12%
Glencore (GLEN) 318.15p 2.63%
Rio Tinto (RIO) 6,038.00p 2.60%
Antofagasta (ANTO) 1,440.00p 2.53%
Rentokil Initial (RTO) 518.40p 2.41%
Ashtead Group (AHT) 5,548.00p 2.36%
Experian (EXPN) 2,943.00p 2.33%
Evraz (EVR) 600.20p 2.32%
Berkeley Group Holdings (The) (BKG) 4,850.00p 2.06%
FTSE 100 - Fallers
Informa (INF) 512.40p -4.33%
Entain (ENT) 1,812.50p -3.32%
International Consolidated Airlines Group SA (CDI) (IAG) 181.28p -3.07%
Rolls-Royce Holdings (RR.) 100.94p -2.68%
Flutter Entertainment (CDI) (FLTR) 13,375.00p -1.87%
Compass Group (CPG) 1,550.50p -1.18%
BP (BP.) 307.70p -1.00%
Associated British Foods (ABF) 2,234.00p -0.93%
InterContinental Hotels Group (IHG) 4,874.00p -0.86%
BT Group (BT.A) 189.65p -0.78%
FTSE 250 - Risers
PZ Cussons (PZC) 269.00p 3.86%
Ferrexpo (FXPO) 432.20p 3.18%
Redrow (RDW) 649.20p 3.15%
Pagegroup (PAGE) 595.50p 2.95%
Pennon Group (PNN) 1,219.00p 2.63%
Telecom Plus (TEP) 1,180.00p 2.59%
Oxford Biomedica (OXB) 1,368.00p 2.54%
Capital & Counties Properties (CAPC) 170.70p 2.40%
Redde Northgate (REDD) 410.00p 2.24%
Morgan Sindall Group (MGNS) 2,255.00p 2.24%
FTSE 250 - Fallers
888 Holdings (888) 387.20p -6.54%
Tullow Oil (TLW) 54.54p -5.50%
Cineworld Group (CINE) 80.20p -5.00%
Spire Healthcare Group (SPI) 228.00p -4.83%
BBGI Global Infrastructure S.A. NPV (DI) (BBGI) 170.20p -4.70%
Carnival (CCL) 1,575.40p -4.68%
4Imprint Group (FOUR) 2,680.00p -4.11%
Mitchells & Butlers (MAB) 281.40p -4.09%
Rank Group (RNK) 179.00p -3.58%
SSP Group (SSPG) 280.10p -3.55%