London pre-open: FTSE to open down a touch as investors digest FOMC statement

London stocks are expected to open a little lower on Thursday as investors digest the Federal Reserve’s latest rate announcement and accompanying statement.

FTSE All-Share

4,411.85

15:45 15/11/24

n/a

The FTSE 100 is called to open down five points from Wednesday’s close at 6,433.

“In September the Fed gave us a dovish hold, largely due to concerns about events overseas, and rather controversially, when the economic data was undoubtedly much better than it is now, yet six weeks later, we get a hawkish hold when we've seen a significant deterioration in that same US data, on top of another policy easing from the Chinese central bank, as well as the potential for additional easing measures, from the ECB,” said Michael Hewson, chief market analyst at CMC Markets.

“This does rather beg the question as to whether the Fed really has any idea at all about what it is trying to communicate.”

On the economic calendar, investors will eye the release of UK net consumer credit and money supply at 0930 GMT and UK CBI distributive trades at 1100 GMT. In the US, the first release of third-quarter GDP is at 1230 GMT, along with initial jobless claims, while pending home sales are at 1400 GMT.

Barclays third-quarter profit falls

Barclays posted a drop in third-quarter pre-tax profit as the cost of claims settlements weighed on results and revenues fell.

Third-quarter pre-tax profit slid to £861m from £1.22bn in the same period last year, as revenue declined to £6.11bn from £6.38 in 2014.

On Wednesday, Barclays confirmed the appointment of former JPMorgan investment banking head Jes Staley as its new chief executive, replacing Anthony Jenkins.

Underlying sales growth at BT Group improved in the second quarter but operating profits declined due to the telecoms company's diversification into media and investing in sports broadcasting.

BT will pay a half-year dividend of 4.4p, a 13% increase on the same period last year, after underlying revenue excluding transit rose 1% in the half-year to 30 September, helped by a 2% increase in the second quarter.

However, earnings before interest, tax, depreciation and amortisation (EBITDA) fell 1% in the second quarter, reflecting the investment in BT Sport, but this was largely expected.