London stocks were in the black by midday on Wednesday, with travel shares higher, but gains were muted as investors eyed the latest policy announcement from the US Federal Reserve.
The FTSE 100 was 0.2% firmer at 7,010.60.
As far as the Fed is concerned, CMC Markets analyst Michael Hewson said the 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, 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%.
Barclays rallied 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.
Broadcaster ITV was on the front foot 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. Other travel-related stocks also gained, such as Upper Crust and Ritazza owner SSP, which has outlets at airports and train stations.
IG market analyst Joshua Mahony said: “Plans for the UK to allow double-jabbed visitors from the EU and US without the need to quarantine marks a welcome albeit belated boost for the travel and tourism sector.
“With summer in full swing, the airlines will hope that this measure drives a swift and sharp rise in bookings as they aim to make up for an incredibly tough period.”
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.
RHI Magnesita was under the cosh after its interim earnings before interest, tax and appreciation came in marginally ahead of expectations but net debt came in higher.
Market Movers
FTSE 100 (UKX) 7,010.60 0.21%
FTSE 250 (MCX) 23,058.94 0.80%
techMARK (TASX) 4,487.26 0.92%
FTSE 100 – Risers
St James’s Place (STJ) 1,615.50p 7.13%
Fresnillo (FRES) 796.20p 5.60%
International Consolidated Airlines Group SA (CDI) (IAG) 182.58p 4.14%
Barclays (BARC) 175.60p 3.67%
Rolls-Royce Holdings (RR.) 101.48p 3.27%
Melrose Industries (MRO) 161.80p 2.44%
Smith & Nephew (SN.) 1,555.50p 2.23%
Intertek Group (ITRK) 5,590.00p 2.23%
Scottish Mortgage Inv Trust (SMT) 1,303.00p 1.96%
Smurfit Kappa Group (CDI) (SKG) 4,125.00p 1.88%
FTSE 100 – Fallers
HSBC Holdings (HSBA) 395.45p -1.95%
Reckitt Benckiser Group (RKT) 5,602.00p -1.72%
London Stock Exchange Group (LSEG) 7,252.00p -1.17%
Avast (AVST) 567.20p -1.05%
Johnson Matthey (JMAT) 2,985.00p -0.90%
GlaxoSmithKline (GSK) 1,387.40p -0.84%
Auto Trader Group (AUTO) 641.80p -0.80%
BHP Group (BHP) 2,299.50p -0.73%
Antofagasta (ANTO) 1,468.50p -0.68%
WPP (WPP) 936.20p -0.62%
FTSE 250 – Risers
Wizz Air Holdings (WIZZ) 4,945.00p 6.14%
SSP Group (SSPG) 268.00p 6.05%
Capita (CPI) 36.01p 5.20%
easyJet (EZJ) 890.60p 4.85%
Meggitt (MGGT) 476.40p 4.84%
Rathbone Brothers (RAT) 1,966.00p 4.24%
FirstGroup (FGP) 87.70p 4.09%
Mitchells & Butlers (MAB) 286.60p 4.07%
Virgin Money UK (VMUK) 203.50p 3.46%
Trainline (TRN) 342.80p 3.38%
FTSE 250 – Fallers
RHI Magnesita N.V. (DI) (RHIM) 3,876.00p -9.01%
Tyman (TYMN) 430.00p -3.48%
Lancashire Holdings Limited (LRE) 653.50p -3.26%
Greencore Group (CDI) (GNC) 129.60p -2.70%
Vesuvius (VSVS) 525.00p -2.33%
PureTech Health (PRTC) 330.00p -2.08%
Volution Group (FAN) 464.50p -1.59%
Beazley (BEZ) 386.80p -1.43%
Spirent Communications (SPT) 256.60p -1.38%
Premier Foods (PFD) 110.60p -1.25%
