Tribe Technology set to deliver healthy pipeline of orders from Tier-One miners. Watch the video here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksDC..L Share News (DC.)

  • There is currently no data for DC.

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

LONDON MARKET CLOSE: Stocks fall as caution sets in ahead of Fed

Wed, 17th Mar 2021 16:51

(Alliance News) - Stock prices in London ended lower on Wednesday, with investors showing trepidation before the US Federal Reserve reveals its latest interest rate decision, amid a backdrop of rising bond yields and inflationary worries.

The FTSE 100 index closed down 40.94 points, or 0.6%, at 6,762.67.

"A 30 point drop for the FTSE 100 chimes with the overall atmosphere in markets, which remain cautious as traders look to the FOMC meeting," IG analyst Chris Beauchamp commented.

The FTSE 250 ended down 205.94 points, or 1.0%, at 21,558.55. The The AIM All-Share fell 5.69 points, or 0.5%, at 1,201.28.

The Cboe UK 100 ended down 0.4% at 674.84, the Cboe UK 250 closed down 0.8% at 19,219.16, and the Cboe Small Companies lost 0.1% at 13,945.03.

In Paris, the CAC 40 ended marginally lower, while Frankfurt's DAX 30 climbed 0.3%.

"Investor attention is focused on the conclusion of the Federal Reserve's meeting, which comes amid noisy economic data and rising inflation concerns," analysts at UBS commented.

The Fed is expected to keep interest rates unchanged. UBS said investors will pay particular attention to how the central bank addresses rising bond yields.

The 10-year US Treasury yield topped 1.67% on Wednesday, its highest level for more than a year.

"So far the Fed has not explicitly pushed back on this sharp rise, but this meeting is another opportunity to do so. The Fed's asset purchases are currently running at USD120 billion per month and up until now Powell has been saying that it's too soon for the Fed to start thinking about tapering its buying. We expect him to maintain that stance, but a change in messaging could trigger a market reaction," UBS said.

Rising bond yields boosted the dollar, meaning sterling lost ground. The pound was trading at USD1.3873 at the time of the London equity market close, down from USD1.3886 on Tuesday. The euro fetched USD1.1900, up from USD1.1894, but down from intraday highs of USD1.1916.

Against the yen, the dollar was trading at JPY109.29 at the London market close Wednesday, up from JPY109.02 on Tuesday.

In London, Intertek and British American Tobacco, two of the FTSE 100's dollar earners, were among the better performers. The duo rose 2.4% and 2.3%, on the back of a weaker pound.

BT Group jumped 6.5%. The telecommunication firm's EE mobile unit has secured new 700 megahertz and 3.6 to 3.8 gigahertz band spectrum for GBP452 million, following the principal stage of UK telecoms regulator Ofcom's 5G auction.

"Meanwhile, reflation and pro-cyclical stocks have helped ease the FTSE's decline," IG analyst Joshua Mahony said.

Lenders NatWest and Standard Chartered rose 1.0% and 1.9%. In addition, HSBC lifted StanChart to Buy from Hold.

"The FTSE 350 gainers highlight the ongoing ascent for reflation stocks, with banks, airlines, train operators, and high-street names gaining ground," Mahony added.

Blue-chip high street stalwart JD Sports Fashion and mid-cap retailer Dixons Carphone rose 0.5% and 1.3%.

Miners weighed on the FTSE 100, Rio Tinto fell 2.4%, Anglo American shed 3.9% and BHP ended down 2.4%.

"Metals have struggled to find clear direction in the last few weeks thanks to macro market jitters and the bond market tantrum which caused consternation in cross-asset markets," analysts at ING said.

An ounce of gold fetched USD1,727.63 at the London market close on Wednesday, down from USD1,729.46 late Tuesday.

ING added: "Clearly, gold is standing at a crossroads and is awaiting guidance from the upcoming FOMC meeting.

"Meanwhile, cryptocurrencies do appear to have stolen gold’s thunder, and it's particularly true given cryptocurrencies' possible wider acceptance from institutional investors."

Stock prices in New York were mixed ahead of the Fed interest rates decision.

The Dow Jones Industrial Average was up 0.3%, but the S&P 500 and Nasdaq Composite were down 0.4% and 1.0%.

Uber shares were down 4.6% in New York after it acquiesced and reclassified its UK riders, a fate it has previously warned investors about.

Uber on Tuesday said it is granting its UK drivers worker status, with benefits including a minimum wage - a world first for the US ride-hailing firm.

Brent oil was quoted at USD67.64 a barrel at the London market close on Wednesday, down from USD68.28 on Tuesday.

Thursday's local corporate calendar has annual results from bookmaker 888 Holdings and tonic water maker Fevertree Drinks. Online-only grocer Ocado Group posts a trading statement.

Thursday's economic calendar has the latest US jobless claims data at 1230 GMT. Before that, focus will be on the latest Bank of England interest rate decision at 1200 GMT.

The BoE is expected to leave interest rates unchanged.

BoE Governor Andrew Bailey at the start of this week said Britain's economic activity will return to its pre-coronavirus level at the end of this year following the country's vaccine rollout.

The BoE's optimism should be bolstered this week by developments since February's meeting, including the vaccine rollout and also stimulus announced in the UK budget earlier in March.

By Eric Cunha; ericcunha@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

More News
27 Jan 2016 17:31

Wednesday broker round-up

(ShareCast News) - Aldermore Group: Investec reiterates buy recommendation and keeps target price at 325p. Saga: Numis stays at addwith 235p target and Canaccord Genuity upgrades to buy 240p target. Crest Nicholson: Jefferies keeps at buy and raises target from 719p to 740p. Ophir Energy: Credit S

Read more
27 Jan 2016 14:08

FTSE 100 movers: Sage leads market back into the black

(ShareCast News) - After a turbulent day, the FTSE 100 was up 12.72 points (0.22%) by mid-afternoon Wednesday to 5,924.18. Sage led the market after posting an increase in first quarter revenues, driven by strong software subscription revenue. It saw group organic revenue for the three months to 31

Read more
27 Jan 2016 10:30

Dixons Carphone's improvements prompt Investec upgrade

(ShareCast News) - Investec has upgraded Dixons Carphone from 'add' to 'buy' as the company's core businesses improve and gain market share. The investment bank on Wednesday said that should drive medium term profit growth despite continued softness in the Nordics. "Ongoing self-help and market sha

Read more
26 Jan 2016 13:43

FTSE 100 movers: Miners dominate as market claws back losses

(ShareCast News) - After starting the day in the red, the FTSE 100 clawed back to even territory by rising 3.09 points (0.05%) to 5,880.09 by mid-afternoon. Miners dominated the risers list as oil prices stayed above $30 a barrel and gave the market some confidence. At 1416 GMT, Brent crude had rise

Read more
26 Jan 2016 10:25

WINNERS & LOSERS SUMMARY: Marston's Merry Christmas Boosts Pub Stocks

Read more
26 Jan 2016 08:31

LONDON MARKET OPEN: Commodity Stocks Suffer As Crude Prices Retreat

Read more
26 Jan 2016 07:29

London pre-open: Stocks seen lower on weak US and Asian cues as oil drops

(ShareCast News) - London stocks are expected to open lower on Tuesday, tracking weakness in the US and Asia amid sliding oil prices. The FTSE 100 is seen starting 47 points lower than Monday's close at 5,830. "The oil market continues to take no prisoners as no sooner had we seen a sharp move ab

Read more
26 Jan 2016 07:18

Dixons Carphone Annual Profit To Beat Consensus After Good Christmas

Read more
26 Jan 2016 07:10

Dixons Carphone reports solid Christmas trading

(ShareCast News) - Dixons Carphone ended 2015 on a high, reporting positive sales growth in the 10 weeks to 9 January, including a bumper Black Friday. The FTSE 100 electronics retailer reported 5% increases in like-for-like revenues across its European regions. Dixons Carphone also said it expecte

Read more
26 Jan 2016 07:05

Dixons Carphone rings up higher profit guidance after buzzing Christmas

(ShareCast News) - After an encouraging 10 weeks of Christmas trading, Dixons Carphone has lifted profit guidance slightly above consensus forecasts and said it will go ahead with the full roll-out of stores in the USA. Like-for-like sales were up 5% in the third-quarter, with an all-time record day

Read more
19 Jan 2016 16:04

Earnings, Trading Statements Calendar - Week Ahead

Read more
15 Jan 2016 16:03

Dividends Calendar - Week Ahead

Read more
4 Jan 2016 09:40

BROKER RATINGS SUMMARY: Deutsche Bank Upgrades ASOS To Buy From Hold

Read more
24 Dec 2015 11:41

Dividends Calendar - Week Ahead

Read more
21 Dec 2015 16:54

LONDON MARKET CLOSE: Stock Gains Wiped Out By Late Oil Price Slide

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.