- FTSE 100 loses 29 points on the day
- Dow, S&P 500 up, Nasdaq down as GDP beats forecasts
- Thames Water has "significant issues" to address: Ofwat
4.45pm: FTSE 100 lower at the close
London's main index closed the day in the red as higher UK yields and a weak utlity sector weighed on stocks.
At the close, the FTSE 100 was down 29 points at 7,472 points for a 0.4% loss on the day.
“The potential demise of Thames Water has investors running scared, and London’s listed utilities are under pressure as a result," IG's Chris Beauchamp commented.
"Fears of a domino effect in the industry are at fever pitch, though no other specific names have yet been mentioned. But to add to that, UK yields are on the up once again, diminishing the attractiveness of dividend stocks, of which utilities make up a healthy constituency.”
3.55pm: Crystal ball needed
With the first half of 2023 drawing to a close on Friday, Michael Hewson, chief market analyst at CMC Markets UK, has asked what is next for the FTSE 100?
Hewson said: “FTSE 100 appears to have decent support at the 7,375 area, however, the series of lower peaks since the record highs in February does speak to increased uncertainty about the global outlook, and especially demand for commodities.
“Looking ahead to the second half of 2023, and the outlook for equity markets more broadly, the same risks that we were concerned about at the start of the year remain as prevalent as ever, with the situation in Eastern Europe continuing to evolve.”
He added: “Recent events in Russia have added a new twist as the invasion of Ukraine continues to generate problems for President Vladimir Putin inviting questions as to whether he can survive, and what sort of Russia might we see if he were to be replaced.
“We also have the small matter of the Chinese economy and whether officials there can engineer an increase in demand at a time when parts of Europe are already in recession, with the likelihood that the UK could follow.”
Hewson concluded: “Core inflation continues to remain stubbornly high, even as central bankers commit to more rate hikes despite evidence that inflation is coming down sharply already.
This commitment to drive down inflation has seen markets finally price out the prospect of rate cuts this year, driving short term rates back towards the highs of the year.”
3.35pm: Lithium production in Cornwall
French mineral processing company Imerys has announced plans to invest more than 600mln euros (£520mln), for an 80% stake in a joint venture with British Lithium to develop the UK’s first commercial lithium mine in Cornwall.
British Lithium has been carrying out drilling and exploration on the Imerys-owned site at St Austell since 2017. It now says it has developed the technology that will enable the separation of battery-grade lithium from the Cornish granite where it has formed over millions of years.
The deposits are estimated at 161 million tonnes and will be extracted over the next 30 years. The aim is to be producing 20,000 tonnes a year by 2030 - “potentially enough to equip 500,000 electrical vehicles a year”.
The project has received financial support from the UK government’s Automotive Transformation Fund, although neither the government nor the company said how much funding has been provided.
In British Lithium's statement, the UK Business and Trade Secretary Kemi Badenoch said: “This joint venture between Imerys and British Lithium will strengthen our domestic supply of critical minerals, which is vitally important as we seek to grow the UK’s advanced manufacturing industry and help create the jobs of the future.
“This partnership shows again that the UK remains an attractive destination for international investment and will boost economic prosperity, support green industries, and bolster our energy security – not only in Cornwall, but right across the UK.”
3.15pm: Power clamp-down
Ofgem, the UK's energy regulator, plans to clamp down on power station owners making “excessive profits” from supplying the UK electricity network.
Ofgem said it intends to introduce new licence conditions after a probe found some generators have been holding back electricity supplies so they can fetch higher prices in the market for back-up power generation.
The practice has pushed up costs for consumers at the height of last year’s energy crisis, contributing to a total bill of £3.1bn to keep supply and demand matched in 2021-22 through the so-called 'Balancing Mechanism'.
In a statement, Eleanor Warburton, Ofgem’s acting director for energy systems management and security, said: "The proposed new licence condition will ensure electricity generators don’t take advantage of existing rules to make excessive profits in the Balancing Mechanism.
“Following on from our previous consultation we are now inviting final feedback from across the industry on the proposed changes, which we hope to have in place to protect consumers this winter.”
2.45pm: Caution prevails
The FTSE 100 index stays weak but eases off the day’s lows as Wall Street stocks started mixed following stronger-than-expected US GDP data and after further comments from Federal Reserve chair Jerome Powell reiterating the path for future interest rate hikes.
Around 15 minutes after the New York open, the Dow Jones Industrial Average was ahead 108 points, or 0.3%, at 33,961, while the S&P 500 index added 0.1%, but the Nasdaq Composite was down 0.1%.
Commenting on the latest US GDP figures, Alex Livingstone, head of Trading & FX at Titan Asset Management said: “Q1 US GDP was released at 2% above market expectations of 1.4%. The data release shows the US economy to be holding up well driven largely by stronger-than-expected personal consumption.
"All eyes will now be on the next FOMC decision at the end of July, as this latest growth data provides hawks with more ammunition in arguing for additional rate hikes to stamp out sticky inflation once and for all. Despite recent dampened volatility, this could throw more uncertainty into the mix to spice up what is otherwise a predominantly quieter time in markets.”
Meanwhile, initial jobless claims for last week unexpectedly fell to 239,000, down from 265,000 in the prior week and below the consensus expectation of 265,000.
Pantheon Macroeconomics chief economist Ian Shepherdson said there was no specific explanation for this sudden dip in unemployment claims, but observations for individual weeks need to be viewed with skepticism, especially when they move against the established trend in claims and other data.
“The rising trend in claims is consistent with the upshift in Challenger layoff announcement numbers and WARN notices of plant closures and mass layoffs, and we expect further increases in all three measures in the second half,” Shepherdson said.
2.30pm: European sentiment down
The European Commission's Economic Sentiment Indicator fell to a seven-month low of 95.3 in June, down from 96.4 in May, below consensus for 96.0, as well as the long-term average.
A decline was noted across all sectors, with manufacturing, retail, construction and services all posting weaker sentiment.
Services sentiment fell to 5.7 from 7.1 a month earlier, while industrial sentiment came in at -7.2, against -5.3 in May.
Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics, said: "Overall, these data are consistent with other surveys indicating that economic momentum faded at the end of the second quarter.
"We are sticking with our view with Eurozone GDP growth will languish around zero in the second and third quarters, below the European Central Bank's forecasts."
2.15pm: Data drop
The FTSE 100 stayed close to session lows as Wall Street futures still pointed higher but saw earlier gains eroded after a further batch of strong US economic data.
Neil Wilson, chief market analyst at Markets.com noted: "Dollar two-week high, gold below $1,900 for the first time since March 15th and front-end yields up sharply after US data showed remarkable strength in the economy. GDP was revised up to 2% vs the 1.4% initial reading, whilst initial claims also fell.
"Unusually high revision – shows just how resilient the US is and though rear-facing it is nevertheless has implications for the Fed going into the second half – at least in the way they will view the impact of hikes."
He added: "Deeper inversion – 2yr up hard to 3.8%, inversion now more than 105bps, Fed swaps see 50% chance of a second rate hike by end of the year, a July hike looks nailed on now – market is sitting up and listening to what the message from the central banks – higher for longer. No wonder Powell sounded hawkish yesterday."
1.30pm: A quick glance at today’s movers in London
Fallers
tinyBuild - down 56% to 15p: Shares plunge after the firm said its first-half performance had undershot expectations. The video game group is blaming recent acquisitions for the alert, which will see hefty downgrades to 2023 and 2024 earnings forecasts. The cash position is expected to be significantly lighter than anticipated.
Cineworld - down 33% to 0.3p: Shares dropped after its third amended joint Chapter 11 plan of reorganisation was confirmed in the US bankruptcy court in Houston, Texas. This "paves the way", the Anglo-US cinema group said, for it to implement its restructuring transaction plans, which include the release of around US$4.5bn of the debt, a fully backstopped rights issue to raise gross US$800mln and US$1.46bn in new debt financing.
Tandem Group - down 10% to 188p: Shares dropped following a mixed outlook in its AGM trading statement. Despite strong growth in the retailer's e-mobility division, sales have seen an overall decrease of 26% compared to the previous year due to cautious buying behaviour among retailers and the impact of the ongoing cost of living crisis.
Risers
De La Rue - up 10.6% to 40.4p: The banknote printer rallied following indications of a recovery in currency demand and a robust performance in its authentication business. The group has maintained its full-year adjusted operating profit forecast in the low £20mln range.
Ondo Insurtech - up 9.6% to 20.2p: Ondo Insurtech bounced after announcing a new deal with Australia’s largest general insurer IAG. Under the deal, the testing and development of an outside ‘All Weather’ version of Ondo’s LeakBot product will be trialled over the next 12 months.
Serco - up 9.5% to 155.9p: The outsourcing giant jumped following an upgrade in its profit and revenue projections for the current year.
The company told investors it has seen increased demand for its immigration and defence services fuelling this growth.
1.00pm: US futures point to firm restart on Wall Street
US stocks are expected to push higher on Thursday as the market approaches the end of the second quarter and the first half of 2023, with investors still mulling the path for future interest rate hikes after further comments from Federal Reserve chair Jerome Powell and ahead of more data releases.
In pre-market trading, futures for the Dow Jones Industrial Average (DJIA) were 0.3% higher, while those for the S&P 500 also added 0.3%, and contracts for the Nasdaq 100 rose 0.4%.
On Wednesday, the DJIA closed 0.2% lower, while the S&P 500 edged down 0.05%, but the Nasdaq Composite gained 0.3% as investors digested Powell’s latest comments about the tightening cycle.
Speaking at a forum sponsored by the European Central Bank in Portugal on Wednesday, Powell said that more restrictive policy is still to come as the Fed continues to fight inflation. This includes the prospect of interest rate hikes at consecutive meetings, he added.
At a conference in Madrid, Spain, early on Thursday morning, Powell reiterated that view, saying that with US inflation well above the Fed's 2% goal and a labor market that's still very tight, most of the central bank's policymakers expect they will need to raise interest rates at least twice more by year's end.
In remarks prepared for delivery to the Banco de Espana conference on financial stability that largely echoed his recent observations on the economy and the state of policy, Powell did not say when those rates hikes may come.
On the data front, investors will have - arguably - the most important piece of economic data for this week to digest, which are the US GDP quarter-on-quarter figures.
Naeem Aslam, chief investment officer at Zaye Capital Markets commented: "The number is expected to perform a little better in comparison to the previous reading (previous 1.3% and forecast 1.4%). A strong number will really lift sentiment in the market, as traders have been concerned about the hawkish commentary from the Fed Chairman, who has warned markets a few times already that more rate hikes are still on the table.
"However, we think that the time has come when the Fed will talk more and do less, as the general direction of inflation is right, and in the coming months we will see a further improvement in this number."
Traders will also keep an eye on the latest US weekly jobless claims and new home sales data, both also due to be released on Thursday.
On the corporate front, JPMorgan and Bank of America both gained more than 1% in after-hours trading as the country’s biggest lenders passed the Federal Reserve’s annual stress test.
And Micron Technology shares ticked up 3% in extended trading after the chipmaker posted revenue that came in higher than expected for its latest quarter, citing higher industry demand.
12.28pm: Water stocks knocked by Thames turmoil
Water companies have fallen as the fall-out from the turmoil engulfing Thames Water prompts concerns that regulators may demand a jump in spending, leaving less scope for dividends to be pumped higher.
Pennon fell 3.3%, Severn Trent dipped 3.5% and United Utilities slipped 1.9%.
On Wednesday it was reported that the UK government was drawing up contingency plans for the emergency nationalisation of Thames Water as concerns grow over its £14 billion debt mountain.
Investors fear a tighter regulatory regime could follow following criticism of the industry over leakages, sewage spills and bumper dividends and salaries to industry bosses.
"As the next regulatory timeframe looms for the period 2025 to 2030, there is set to be much bigger demands from regulators on infrastructure improvements to reduce sewage spills, increase capacity, and meet net-zero targets," said Hargreaves Lansdown's Susannah Streeter.
"Capital expenditure will have to increase sharply as a result – United Utilities, Severn Trent and Pennon have already had to push up spending, but budgets will need to expand, and debt levels will rise as a result," she added.
This could leave dividends vulnerable as well.
12.04pm: City fixer tipped to join Thames Water as chair
Thames Water, the embattled water firm, is set to turn to a veteran City “fixer” as its new chair as it struggles to raise the funds it needs to avoid being taken over by the Government.
The Times reported it is poised to appoint Sir Adrian Montague, 75, to replace Ian Marchant, who has been chair since 2018.
Montague is chair of insurance giant Aviva but is best known for his role running the Treasury’s Private Finance Initiative Taskforce in the late 1990s.
Montague, 75, was also front and centre when a company operating another vital public service, the railways, hit the buffers.
In 2001 Railtrack was put into administration by Stephen Byers, the transport secretary, and Montague was one of the architects of its successor body, Network Rail.
11.35am: Mortgage rates tick higher
The average two-year fixed mortgage rate jumped to 6.37% today, while five-year fixes got ever-closer to 6%.
Figures from Moneyfacts show that two-year fixed rates were up from 6.30%. Five-year rates rose from 5.91% to 5.94%.
The data comes after the Bank of England revealed a slight rise in mortgage approvals in May.
However, the figures don't take into account expectations of much higher mortgage rates which followed last week's strong inflation numbers and the increase in interest rates to 5%.
11.20am: Spanish inflation below 2%
Not something I have written recently but Spanish inflation has fallen below the ECB's 2% target, down to 1.9% June.
It's the first time it has been below 2% since March 2021.
However, economists at ING think inflation is expected to pick up in the second half of the year due to several factors, including higher oil prices and the fading of favourable base effects.
ING said several factors are fuelling disinflationary pressures in Spain - lower gas and electricity prices, lower fuel prices, falling transport costs and cooling food inflation which accounts for 22% of the overall inflation rate.
In Madrid, the Ibex 35 is up 0.2% at 9,504. Back in London, where we can only dream of 2% inflation, the FTSE 100 is down 15 points at 7,485.
10.58am: US banks rise after passing Fed's stress test
Some eye-watering numbers in the latest stress test figures for US banks, conducted by the Federal Reserve, but overall encouraging news.
The Fed reckons the largest US banks would lose US$541bn in a hypothetical doomsday economic scenario but still have more than enough capital to absorb the losses.
The stress tests are important as they help determine how much capital banks have to hold in the next 12 months.
As long as banks match or exceed the requirements, they are free from Fed restrictions on how much capital they can put towards shareholder dividends and stock buybacks.
This year's stress test includes a severe global recession with a 40% decline in commercial real estate prices, a substantial increase in office vacancies, and a 38% decline in house prices. The unemployment rate rises by 6.4 percentage points to a peak of 10% and economic output declines commensurately.
The data came after the US market close but after hours US banks climbed.
Bank of America was up 1.0%, Goldman Sachs (NYSE:GS) up 1.5%, Wells Fargo up 1.7% and JP Morgan up 1.0%.
The news will encourage hopes of improved dividends or more share buybacks with banks having to hold less capital going forward.
The results come just months after three of the largest bank failures in US history - Silicon Valley Bank, Signature Bank and First Republic – which triggered turmoil in the banking sector.
“Today’s results confirm that the banking system remains strong and resilient,” Fed vice-chair for supervision Michael Barr said in a statement.
10.44am: Revolution Beauty CEO and Chair pick up shares
While the ongoing spat with boohoo carries on, the chief executive and chair of Revolution have put their hands in their pockets and picked up some shares.
CEO Bob Holt has paid £260,000 for 1mln shares while non-exec chair Derek Zissman forked out £30,500 for 100,000 shares taking his holding to 130,000 shares or 0.04% of the company's share capital.
Shares, which resumed trading yesterday after a lengthy suspension, rose a further 6.3% to 26.04p on Thursday.
The FTSE is down 14.51 points, or 0.2%, at 7,485.98.
10.34am: May might prove high point for mortgage approvals
Martin Beck, chief economic advisor to the EY ITEM Club, thinks May's rise in mortgage approvals "may prove the high point for the immediate future."
He pointed out despite the improved figure mortgage approvals are still down 24% on a year earlier.
“Mortgage interest rates have risen significantly during June, driven upwards by the increase in swap rates."
"This has caused a significant deterioration in mortgage affordability and is likely to keep housing activity at very low levels," Beck felt.
"Net mortgage lending remained in negative territory in May, reflecting past weakness in approvals. Given the poor outlook for approvals, very low, or even negative net lending is likely to be the norm for the summer," he thinks.
9.51am: Mortgage approvals hold steady in May
Mortgage approvals rose to 50,500 in May from 49,000, figures released from the Bank of England showed, marginally better than the City had predicted.
Remortgage approvals also rose from 32,500 to 33,600 during the same period while the 'effective’ interest rate - the actual interest rate paid – on newly drawn mortgages rose by 10 basis points, to 4.56% in May.
Net borrowing on consumer credit by individuals decreased from £1.5bn in April to £1.1bn in May.
The figures for May came ahead of the increase in interest rates announced by the Bank of England last week to 5% which prompted lenders to hike mortgage rates across the board.
Meanwhile, the FTSE 100 remains steady, down 7 points.
9.38am: H&M provides boost for Next, Primark owner
Fashion retailers have received a boost from strong results from H&M.
Shares in the Swedish fast-fashion retailer gained 10.7% after it reported financial second quarter operating profit of 4.74bn Swedish crowns, beating forecasts for 4.07bn.
CEO Helena Helmersson said ‘the summer collections have been well received and the third quarter has got off to a good start.’
The news boosted Next, up 0.9%, and Primark owner, AB Foods, up 0.5%.
9.25am: B&M tumbles despite strong trading
Shares in B&M has tumbled 6% despite a strong-looking trading update. So why the fall?
Russ Mould at AJ Bell thinks "it could be the lack of full-year guidance which implies no upgrades to earnings expectations."
He also pointed out "the shares have already had a strong run this year, up more than 30%, so perhaps some investors are banking profits while the going is good.”
Peel Hunt agreed. "The shares have had a great run but we are slightly concerned about valuation, so stick with a hold.”
Shore Capital also kept its 'hold' rating. “We remain cautious due to the increasingly challenging year-on-year comparisons expected for the remainder of the year, a worrisome increase in shrinkage, and the potential need for price adjustments to support low-income UK consumers,” it said.
B&M shares are up 43% in the last 12 months so investors have had a good run.
8.52am: Thames Water has "strong liquidity", says Ofwat but has "significant issues" to address
As the future of Thames Water continues to attract the headlines, Ofwat, the water industry regulator, has said it is clear that Thames has "significant issues to address."
In a statement, Ofwat said: "We have been clear that Thames Water has significant issues to address - their environmental record and leakage performance, for example, are poor."
"Alongside the turnaround of their operational performance, they need to improve their financial resilience too."
But it sought to reassure over the financial health of Thames and the sector.
It said Thames "has strong liquidity - it recently received an additional £500mln from shareholders and has £4.4bn of cash and committed funding."
“Overall, the sector is continuing to attract international capital and is especially attractive to long-term investors such as pension funds," it added, noting "there has been an additional equity injection of around £2bn since 2020, with companies acting to strengthen their financial position."
Environmental campaigner Feargal Sharkey said Thames Water’s financial woes have exposed that the industry is “very financially fragile”.
Sharkey told Radio 4’s Today Programme that failures in the regulatory system and political oversight had led to the current crisis.
"We’ve seen the symptoms of it, in terms of the sewage crisis, in terms of London’s water supply running out, in terms of leaking pipes not being repaired."
"And it’s now exposed this deeper underlying structural issue that the industry is clearly very financially fragile, if not teetering on the brink of insolvency."
8.41am: De La Rue optimistic, shares soar
The FTSE 100 continues to hold modest losses but one company enjoying a good day is De La Rue.
Shares jumped 10% after it reported signs of a recovery in demand for currency as it unveiled results in line with guidance given in April.
Clive Vacher, De La Rue CEO, said: “Following a significant downturn in Currency demand over the past 18 months, we have witnessed encouraging signs of recovery with strong bid activity, a positive win rate, and the significant majority of FY24 banknote print volume already contracted.”
"In addition, Authentication is on track for significant revenue growth in the current financial year,” he said.
The bank note printer said revenue in the year to March 25 fell to £349.7mln from £375.1mln with adjusted operating profit of £27.8mln, down from £36.4mln.
The FTSE 100 is down 9 points at 7,491.
8.15am: FTSE 100 lower but Serco jumps after raising guidance
The FTSE 100 fell in early exchanges on Thursday weighing up hawkish comments from leading central bankers at a conference in Portugal, yesterday.
At 8.15am, London’s blue-chip index was down 16.16 points, or 0.2%, at 7,484.33 while the FTSE 250 fell 28.03 points, or 0.2%, at 18,384.78.
“Subdued market volatility remained the dominant theme over the last 24 hours, even as central bank governors pointed to further tightening ahead,” Deutsche Bank’s Jim Reid said.
Discount retailer B&M Value Retail slipped 1% despite what analysts called a “strong” trading update.
The retailer reported sales in B&M UK grew by 11.3% to £1.06bn, with both grocery and merchandise categories performing ‘very well.’
Peel Hunt noted that “the shares have had a great run but we are slightly concerned about valuation, so stick with a hold.”
Shore Capital also kept its 'hold' rating. “We remain cautious due to the increasingly challenging year-on-year comparisons expected for the remainder of the year, a worrisome increase in shrinkage, and the potential need for price adjustments to support low-income UK consumers,” it said.
Over in the FTSE 250, Serco was a star performer with shares up 6.7%.
The outsourcer increased its full-year revenue guidance by 4% to at least £4.8bn and lifted its underlying trading profit guidance by 4% to £245mln.
Peel Hunt raised 2023 pre-tax profit forecasts by 5% to £220mln.
“In our opinion the business is well placed to navigate the current macro-economic challenges (strong inflation protection and economic resilience) and to retain the significant Australian immigration contract due for rebid later this year,” it said.
Ashtead slipped as Exane BNP downgraded the company to 'neutral' from ‘outperform’ and cut its price target to 5,550p from 6,250p.
7.52am: B&M sales up as shoppers head for value
B&M European Value Retail SA (LSE:BME) reported strong growth in first-quarter revenues with ‘strong, profitable trading momentum’ across all three of its businesses.
Total sales rose by 13.5% to £1.32bn in the 13 weeks to 24 June 2023, compared to £1.61bn in the same period last year.
Sales in B&M UK grew by 11.3% to £1.06bn, with both grocery and merchandise categories performing ‘very well’ the company said in a statement.
"Our strong trading momentum demonstrates the strength of our unchanged strategy to relentlessly focus on price, product and excellence in retail standards,” commented B&M chief executive Alex Russo.
7.49am: WANDisco laments "wasted year"
WANDisco has published its results for financial 2022 which were delayed after the firm said in March it had found signs of possible “sophisticated” fraudulent activity.
The Sheffield-based data migration platform firm said revenue for the year to December 31, 2022, rose to US$9.7mln from US$7.3mln. In January, the company has forecast revenue of not less than US$24mln.,
Pre-tax loss narrowed to US$28.4mln from US$38.8mln while loss per share was US$0.45 compared to US$0.65 the year prior.
Interim chief executive officer Stephen Kelly described 2022 as a “wasted year.”
But “having got off to a bad start, FY23 will be different,” he pledged.
“I am determined that it will serve as a real transition year towards a sustainable, growth-focused future for our business.”
He said the “early results of our turnaround plan show we can bring this focus to bear.”
The firm said on Wednesday that a US$30mln equity raise would be confirmed next week.
7.31am: Boohoo keeps pressure on Revolution Beauty board
Boohoo upped the pressure on the board of Revolution Beauty demanding that the beauty products supplier publishes details of share option awards given to senior executives.
The online retailer holds a 26.6% stake in Revolution Beauty and the latest move continues the war of words between the two firms.
Boohoo wants the terms of the grant of the free share awards granted to chief executive Bob Holt and chief financial officer Elizabeth Lake together with any award letters issued to the relevant individuals published without delay.
It also wants public confirmation that the proposed terms were not amended following the announcement by boohoo on 19 June of its intention to vote against the appointments of Bob Holt and Elizabeth Lake at Revolution Beauty annual general meeting.
Boohoo pointed out shareholders were not consulted on the Free Share Awards, did not approve its terms, nor approve the appointment of its two main beneficiaries as directors.
“This all demonstrates a lack of transparency and actions which are self-serving and not in the best interests of shareholders,” boohoo said.
At a dramatic AGM, shareholders, led by boohoo voted to remove Holt, Lake and chair Derek Zissman.
But the three were subsequently reappointed in controversial circumstances.
7.02am: FTSE 100 expected to edge lower
London’s blue chips are expected to edge lower at the open on Thursday following hawkish comments from a number of leading central bankers at a conference in Portugal.
Spread betting companies are calling the FTSE 100 down by around 5 points. The index closed 39.03 points higher, or 0.5%, at 7,500.49 on Wednesday.
US stocks were mixed Wednesday after the chair of the Federal Reserve warned that interest rates may need to rise further to curb inflation.
At a closely watched conference in Sintra, Portugal, Jerome Powell said "although policy is restrictive, it may not be restrictive enough and it has not been restrictive for long enough."
The Dow Jones Industrial Average fell 74.08 points, or 0.2%, at 33,852.66. The S&P 500 shed just 1.55 points, at 4,377.86, though the Nasdaq Composite rose 36.08 points, or 0.3%, at 13,591.75.
Asian markets were also mixed. In Tokyo, the Nikkei 225 index was up 0.1%. In China, the Shanghai Composite was flat, while the Hang Seng index in Hong Kong fell 1.3%.
Back in London and the early focus will be provided by updates from B&M, De La Rue, Moonpig, and Serco.