London close: Gains erased as Fed chair gives cautious outlook

by | Aug 25, 2023

(Sharecast News) – UK stocks reversed earlier gains to trade broadly flat by the close on Friday, as comments from Federal Reserve chair Jerome Powell at the closely watched Jackson Hole conference dampened risk appetite.
The FTSE 100 finished the session up just 0.15% at 7,345, well below the daily high of 7,389 reached before Powell’s speech at 1500 BST.

At the three-day conference of global central bankers, Powell said the Fed would “proceed carefully” on any future rate hikes, but warned that signs of stronger growth may warrant further monetary tightening.

“Two months of good data are only the beginning of what it will take to build confidence that inflation is moving down sustainably toward our goal,” Powell said. “There is substantial further ground to cover.”

Market analyst Axel Rudolph from trading platform IG said the speech was “a bit of a damp squib as [Powell] tried to please both doves and hawks”.

Watches of Switzerland sinks

Shares in FTSE 250-listed Watches of Switzerland slumped by a fifth after news that Rolex had bought jeweller Bucherer AG. “Investors seem to fear the tie-up will mean Bucherer gets preferential treatment including better access to the watches that consumers are desperate to buy,” Russ Mould, investment director at AJ Bell, said.

On the top-tier index, Tesco was putting in a decent performance after Barclays raised its target price for the stock from 320p to 325p ahead of the retailer’s first-half results next month. The bank said: “We think Tesco may well raise full-year retail EBIT/free cash flow guidance (even with a cautious view of how 2H may evolve).”

Rival supermarket J Sainsbury also outperformed the market, while mining stocks were limiting gains for the Footsie, with Endeavour Mining, Fresnillo and Antofagasta finishing lower.

Financial trading platform CMC Markets also dropped after saying that annual net operating income would be lower than last year as revenues continued to fall in a “challenging” environment.

Aston Martin Lagonda rallied after Jefferies lifted its stance on the shares to ‘buy’ from ‘hold’ and hiked the price target to 420p from 300p, saying the operating outlook appears “more encouraging than ever”.

Market Movers

FTSE 100 (UKX) 7,344.72 0.15%
FTSE 250 (MCX) 18,131.02 -0.35%
techMARK (TASX) 4,225.86 -0.07%

FTSE 100 – Risers

Tesco (TSCO) 260.10p 1.92%
Smurfit Kappa Group (CDI) (SKG) 3,148.00p 1.81%
Melrose Industries (MRO) 509.60p 1.55%
Sainsbury (J) (SBRY) 262.20p 1.39%
Intertek Group (ITRK) 4,133.00p 1.37%
CRH (CDI) (CRH) 4,508.00p 1.37%
Centrica (CNA) 146.70p 1.31%
Smiths Group (SMIN) 1,589.00p 1.15%
Smith (DS) (SMDS) 293.20p 1.14%
Airtel Africa (AAF) 110.90p 1.09%

FTSE 100 – Fallers

Endeavour Mining (EDV) 1,625.00p -2.75%
Fresnillo (FRES) 549.40p -2.14%
International Consolidated Airlines Group SA (CDI) (IAG) 157.90p -1.56%
Prudential (PRU) 946.80p -1.44%
Johnson Matthey (JMAT) 1,543.00p -1.34%
Ocado Group (OCDO) 741.80p -1.17%
Taylor Wimpey (TW.) 109.30p -1.09%
Scottish Mortgage Inv Trust (SMT) 655.00p -0.97%
Hargreaves Lansdown (HL.) 753.60p -0.92%
Auto Trader Group (AUTO) 587.00p -0.91%

FTSE 250 – Risers

Aston Martin Lagonda Global Holdings (AML) 338.40p 5.49%
3i Infrastructure (3IN) 301.00p 2.56%
SDCL Energy Efficiency Income Trust (SEIT) 75.80p 2.43%
FirstGroup (FGP) 144.00p 2.27%
W.A.G Payment Solutions (WPS) 91.00p 2.25%
Me Group International (MEGP) 155.60p 1.97%
Hays (HAS) 105.30p 1.94%
Digital 9 Infrastructure NPV (DGI9) 54.20p 1.88%
Mitie Group (MTO) 93.60p 1.63%
Senior (SNR) 175.80p 1.62%

FTSE 250 – Fallers

Watches of Switzerland Group (WOSG) 554.00p -20.12%
CMC Markets (CMCX) 110.20p -9.67%
Coats Group (COA) 72.00p -4.00%
TUI AG Reg Shs (DI) (TUI) 469.60p -2.81%
Pennon Group (PNN) 623.00p -2.81%
Centamin (DI) (CEY) 87.60p -2.77%
Direct Line Insurance Group (DLG) 157.40p -2.75%
easyJet (EZJ) 412.40p -2.74%
WH Smith (SMWH) 1,419.00p -2.54%
Currys (CURY) 47.76p -2.53%

Related articles

Latest Articles

US open: Stocks open flat as bond yields continue to rise

US open: Stocks open flat as bond yields continue to rise

(Sharecast News) - US stocks were swinging between gains and losses early on with little newsflow to drive the direction either way, with the S&P 500 taking a breather after hitting a three-month low last week. By 1000 in New York, the Dow Jones Industrial Average was...

UP Global Sourcing opens new Paris showroom

UP Global Sourcing opens new Paris showroom

(Sharecast News) - UP Global Sourcing announced the opening of a new showroom in Paris on Monday as part of its drive into the continental European market. The London-listed company, which trades as Ultimate Products and oversees a brand portfolio including Salter and...

Japan’s long-term value is getting unlocked 

Japan’s long-term value is getting unlocked 

Written by Junichi Takayama, Japan Equity Investment Director, Nikko Asset Management  Japan has experienced quite a year so far. One of the highlights occurred in April, with a visit by Warren Buffett of Berkshire Hathaway. The timing of this visit, ahead of Japan’s...

HgCapital agrees sale of stake in Silverfin

HgCapital agrees sale of stake in Silverfin

(Sharecast News) - HgCapital Trust has agreed to sell Silverfin, a leading cloud platform designed for accountants, to cloud software specialist Visma, it announced on Monday. The FTSE 250 firm said that while specific terms of this deal were confidential, completion...

Join our mailing list

Subscribe to our mailing list to receive regular updates!

No Fields Found.