- FTSE 100 up 20 points to 8,165
- Britain outperforms US as Wall Street ticks lower
3.52pm: FTSE 100 to close out week flat
London's blue-chip index is on track to close the week close to flat, a disguising summary of the markets this week, with Monday seeing one of the worst sessions in recent history, beforee a rebound in the days to follow.
Today, with a slower stream of company and macroeconomic news and a slightly more optimistic senitment around markets, the FTSE 100 has seemingly calmed, lifting around 25 points to close to 8,170.
In company news, Hargreaves Lansdown said au revior to the LSE after it confirmed it had accepted a £5.4 billion bid from a consortium of private equity investors.
FTSE 250 firm Bellway lifted more than 3% after it consumer confidence had returned as it hit its targets for the financial year.
Top rises in the FTSE 100 included easyJet, boosted by a reduction in fees at Gatwick Airport, Hargreaves Lansdown, JD Sports, and Beazley.
The pound is on track to close the week out lower compared to the USD at US$1.27.
If it can't recover, it would mark a month of declines, the worst performance since September last year.
3.33pm: Currencies and commodities today
London stocks are agonisingly close to reaching back to the mark from which it started the week before the global sell-off caused the FTSE 100 to drop close to 3%.
The blue-chip index is on track to finish the day around 0.3% points higher at close to 8,170.
Outside of the equities markets it's also been volatile few days, with the pound on track to suffer a fourth straight week of losses.
Here's how currencies and commodities performed today:
- Bitcoin: -2.3% at US$47,308
- GDP/USD: flat at $1.275
- GDP/EUR: flat at €1.167
- EURO/USD: +0.1% at $1.092
- Brent Crude: +fat at $78.53
- WTI Crude: +0.1% at $76.28
- Gold: +0.3% at $2,431
- Silver: -0.1% at $27.52
3.14pm: Bitcoin's wild week
Like many of the financial markets this week, Bitcoin has been on a bumpy ride, dropping by as much as 16% before a 12% rally.
Bitcoin fell to a six-month low of around $49,000, only to surge back to around $60,500, resulting in a $100 billion market cap swing within four days.
Proactive's Billy Farrington takes Stephen Gunnion through Bitcoin's highly volatile week.
Farrington also discussed the broader impact of this volatility, noting that the NASDAQ, FTSE, and Japanese Nikkei experienced similar downturns.
Bitcoin is down close to 2% today at US$60,601.
2.54pm: Hargreaves Lansdown founders land £800mln payday
Hargreaves Lansdown investors are now preparing to be taken private after the company confirmed this morning it had approved the £5.4 billion offer from a consortium including CVC, Nordic Capital and Platinum Ivy.
Shares as a result have ticked 2.5% higher, but it appears the investors getting the best returns on the deal will be founders Stephen Lansdown and Peter Hargreaves.
The two are on track to recieved an £800 million payday after selling the business they built up from their spare bedroom in Bristol.
Hargreaves confirmed he will sell half of his stake to the European and Middle Eastern buyers, while Lansdown is set to exit his position completely.
2.32pm: US stocks open slightly lower
Wall Street has dropped slightly lower at the start of trading, but investors will be happy to see slightly less volatility across the key indexes when compared to earlier this week.
The Nasdaq was down 0.1% or 21 points at 16,636, while the Dow Jones dropped 0.3% or 106 points to 39,339. The S&P 500 opened flat at 5,315.
"Sentiment has become more positive following a strong tech-led rally yesterday which brought significant gains for all the US majors," said David Morrison at Trade Nation.
"So, the question is how the market now behaves going into the weekend? It’s certainly been a positive start.
Morrison noted that next week's release of two sets of inflation data will be important to how the market performs.
He added: "Should the CPI continue to show downside progress towards the Fed’s 2% target, then that should help support equities on the increased probability of a 50 basis point cut at the next monetary policy meeting in September."
1.49pm: FTSE 100 flexes resilience in face of sell-off
As the FTSE 100 appears to be having its most stable day of trading, albeit with fluctuations ranging close to 60 points, and is hovering around the 8,150 mark.
London's recovery from the sell-off across global markets on Monday is being cheered by analysts across the pond, as Wall Street remains in the red week-on-week.
Britain is "a good place to be in when activity is disappointing,” JP Morgan strategist Mislav Matejka said.
"The UK has traditionally been a low beta, defensive market, which performs well on a relative basis during downturns.
"If global equities see a pullback into summer, the UK could be a relative winner."
1.30pm: Wall Street to edge lower
US stocks are on track to open slightly lower later today, in what could be a slightly more relaxed day of trading compared to earlier this week.
However, it might not be calm for long if Terry Sandven at U.S. Bank Wealth Management is correct.
"Near-term, heightened levels of volatility are likely to be more the norm versus the exception, as broad-market valuations remain elevated and seasonality trends suggest tempered returns during the ‘dog days of summer," the chief equity strategist said.
Paramount and Expedia are to make some of the largest moves when the market opens, with the two up 5% and 9%, respectively.
According to premarket futures, the Nasdaq is set to open around 50 points lower, the S&P 500 down 4 points, while the Dow Jones is forecast to flatline.
13.11pm: Shein to open UK warehouse ahead of IPO
Shein is preparing to open a warehouse in the UK as it prepares to list on the London Stock Exchange in one of the most anticipated IPOs in recent years.
Ahead of what could be a £50 billion listing in London, the fast-fashion Chinese retailer has started the hunt for a large facility in the Midlands, specifically in the 'golden logistics triangle” between York, Harrogate and Leeds.
The Singapore-based group is aiming for a building between 300,000 and 400,000 sq ft, with the possibility of sizes as large as 600,000 sq ft, reports from the Telegraph revealed.
Representatives of the e-commerce group have begun a search in the UK, looking at areas in Derby, Daventry, Coventry and Castle Donington.
Shein's blockbuster IPO has come under criticsm from a range of activists including a UK charity campaigning for Uyghur rights, which claims they use the ethnic minority as forced labour.
2.53pm: Airliners boosted by Gatwick fee reduction
London's blue-chip index is holding some 30 points higher as we head into the afternoon, propped up by some healthy gains from the miners.
Another sector making gains today was the UK airliners, with easyJet up 3%, while British Airways owner IAG and Wizz Air are 1.25% higher.
It comes after Gatwick Airport revealed its planned cap charges for airlines over the coming years.
The airport proposed airline charges would be capped at 1% below the consumer price index, before rising to mirror inflation for the remainder of the period.
Currently, the amount airlines are charged to use the airport is determined by the retail price index, which typically sits higher.
12.32pm: Nine rate cuts for BoE, says Deustche
Last week, the Bank of England cut rates for the first time in over four years, a decision that went seemingly unnoticed by the market.
Instead, the stock movement appeared to be driven by the central bank on the other side of the pond after it chose to keep the US's borrowing rate on hold.
However, August might not be the only chance the BoE has of getting a reaction out of the markets.
Analysts at Deutsche Bank have predicted the Monetary Policy Committee will cut rates nine times within two years, one of the longest lowering cycles in recent history.
"Our assumption rests on a smooth and gradual path back to neutral. It's clear that there are risks to this view, however," said the German bank.
"One, we could see a faster convergence back to our estimate of neutral (which we see as 2.75% to 3.25%) driven by a faster drop in inflation.
"Two, short-term neutral ends up being a lot higher than we expect, resulting in a shallower rate cutting cycle (and higher terminal rate)."
12.11pm: Oil prices rebound
Oil prices are on track for a steadier day of trading after rebounding for three straight days as the wider market jitters and the issues in the Middle East continue to affect the commodity.
Brent crude oil prices lifted 0.2% to US$79.33 today, having jumped 1.1% the day prior, while West Texas Intermediate rose by 0.3% to US$76.41.
On Monday, Brent fell to seventh-month lows due to the global sell-off but has since rallied back into recovery territory.
Should the international oil benchmark continue its gains today, it will be able to buck four weeks' worth of losses after Libya halted production at its largest field and US stockpiles were drawn down.
11.50am: Barclays hikes bankers bonus cap
Shares in Barclays have lifted 1.5% higher, but it won't just be investors who are welcoming an extra bit of cash.
Bankers at the firm have been handed a boost after the lender announced it scrapped the European Union-era bonus cap for its British-based bankers, according to a Reuters report.
This move comes after the UK government relaxed restrictions post-Brexit, allowing financial institutions to set their own compensation frameworks.
The EU cap, introduced in 2014, had limited bonuses to 200% of a banker’s fixed salary.
Senior Barclays bankers will now be able to receive bonuses of up to 10 times their base salary, according to the report.
11.31am: Entain still making strides
The FTSE 100 is continuing to recover from Monday's chaos with a close to 40-point rise today, helped by gains from the miners and United Utilities (up 3.5%).
Anglo-American, Antofagasta and Glencore all lifted by around 2.5%, while Beazley continued 2.6% higher with yesterday's momentum from its half-year results.
Another company on the rise after a strong set of results yesterday is Ladbrokes owner Entain, which jumped 2.5%.
Yesterday, Entain hiked full-year guidance due to better-than-expected second-quarter performance, with England's Euros campaign having provided a boost.
Stronger than expected win margins from the football tournament, likely buoyed by England's loss in the final, allowed first-half earnings to rise 5% year-on-year to £524 million.
Despite the gains, analysts at Deutche Bank have lowered Entain's price target from 1089p to 958p, potentially failing to see the long-term benefits from the Euros boost.
11.10am: Gas prices near eight-month high
Gas prices are on track to close out the week nearly 10% higher, putting it in position to reach an eight-month high.
Much of the surge in price has been driven by growing geopolitical fears, especially after Ukraine attacked a key transit point on the border.
Dutch front month futures, the benchmark contract in Europe, dropped 1.1% today to just under €40 per megawatt hour, putting it at close to its highest point since December.
Since the beginning of the stockpiling season, the price of gas has surged 45%, also helped by Ukraine attacking the Suddzha point, a key transit point for Russian pipeline gas heading into the rest of Europe through Ukraine.
Rystad Energy analyst Christoph Halser said: "Fears of supply shortages continued to shape gas price developments this week.
"The latest attack could jeopardize ongoing talks between Azerbaijan, Ukraine and the European Union for the continued flow of gas through Ukraine after the current transit agreement expires at the end of the year."
10.48am: UK borrowing costs on track for biggest jump since April
Britain is facing its biggest weekly rise in government borrowing costs since April, driven by the volatile trading which occurred this week.
At the start of the week, 10-year UK gilt yields, the return for those who pay for the government debt, dropped to its lowest level since February.
Yields dropped as much of 3.83% following the peak of the global sell-off on Monday as investors searched for safer, less volatile assets.
They have since climbed back by 3.96% - bond yields move inversely to prices.
Easing fears regarding a US recession have helped lift in the yields in recent days, with the two-year gilts now down slightly to around 3.6%.
10.08am: Revolution Bars survives after rescue plan approved
Zooming in even further into the world of small-caps, it's a night-out favourite which is drawing some attention.
Revolution Bars, the hospitality group, saw its shares surge more than 16% after it said its “long-term future” is secure after a survival plan was approved by London’s High Court.
This will see the bar operator’s Revolution brand amend secured lending facilities, ditch some loss-making sites and implement rent reductions at certain others.
According to the Peach Group, Revolution Bars and De Cuba-owner, the restructuring will boost pre-tax earnings by £3.8 million annually, after it has struggled in the wake of the pandemic.
Revolution will now benefit from amended obligations on £30 million of debt with lender NatWest, including seeing £4 million written off, alongside having longer to pay taxes.
9.44am: Bellway surges in strong start for FTSE 250
In the world of mid-caps, the FTSE 250 is enjoying a strong start to the day, with the index up close to 0.9%, helped by gains from AO World, Wizz Air and Aston Martin.
One company also on the rise is Bellway, the housebuilder, after its shares jumped more than 2.5% on the back of its financial results.
Bellway slightly exceeded its housebuilding targets in its 2024 financial year, completing 7,654 homes against a previously set target of 7,500.
The average house sold for £308,000 in the year, which was also slightly above guidance, leading to total group revenues of £2.35 billion.
Bellway noted sequential improvements over the year as mortgage rates began to moderate and the prospect of central bank interest rate cuts began to emerge.
Honeyman said “we are encouraged” by Labour’s plans and planning reforms, which are intended to deliver 1.5 million new homes within five years.
Bellway did not make mention of its proposed merger with Crest Nicholson in today’s full-year trading update, having extended the deadline for negotiations on Thursday.
9.23am: Chinese inflation rate more than doubles
Chinese markets came under pressure last night after it was revealed that the inflation rate in the country had more than doubled in July, bringing it to a five-month high.
Fresh data put to rest fears of deflation in the world's second-largest economy after the consumer price index increased by 0.5% year-on-year in the last month, rising against June's 0.2%.
July's rise marks six consecutive months of lifts for the inflation rate, the National Bureau of Statistics revealed.
"China is sticking to mere targeted support for domestic demand, prioritising revamping the growth model to rely on high-tech manufacturing, rather than the property sector," said Duncan Wrigley at Pantheon Macroeconomics.
"The five-year urbanisation action plan has the potential to boost domestic demand - partly filling in the gap from the plunge in property sales - but the impact will be gradual and depends on proper implementation and funding.
"The beefed up auto subsidies are enjoying a better take-up since late July; however, the vicious auto price war is still continuing amid fierce competition, and automakers’ pricing power is likely to remain weak."
Fears of economic slowdown have been at the forefront of many Chinese economists' minds over the last few years, with the country having suffered a period of deflation between October and January.
Despite being weighed by a debt-laden real estate industry and high unemployment amongst the youth, China is hopfeul it can increase its economic growth rate to 5% for 2024 - a target considered ambitious by many.
9.02am: Deliveroo continues to soar
Deliveroo has kicked more than 5.5% higher this morning, continuing on from its strong performance yesterday after its shares lifted by close to 11%.
Driving the share gains was Deliveroo's first-ever profits, with the delivery firm announcing earnings of £1.3 million in the six months to June, improving against a loss of £82.9 million in 2023.
A £150 million share buyback was also announced, with chief executive Will Shu noting the return to profit and positive cash flow marked “two major financial milestones,” coming in part on a “stabilising” consumer environment.
Also keeping the stock in flight was a bullish broker note from analysts at Deustche Bank, who upgraded the group's price target from 180p to 187p after reitertaing its 'buy' rating.
"Deliveroo reported solid results that we think keep the group on track to deliver midterm growth acceleration to low double digits and 4% adjusted EBITDA margin in 2026E," said Silvia Cuneo at the German bank.
"We raise our adjusted EBITDA forecasts in 2024E and outer years, albeit with slightly more conservative growth assumptions since macro contribution remains uncertain."
Cuneo also added that the new buybacks were "an extra plus".
Shares in Deliveroo are trading at close to 150p today, representing a close to 25% discount compared to DB's target price.
8.42am: Pound on track for worst losing streak in a year
The British pound must strengthen today to avoid suffering its worst run in over a year, as it heads for another week-on-week loss.
Sterling has dropped in value for the last three consecutive weeks, and is a session away from its fourth, putting it on pace for its worst performance since September 2023.
Compared to the USD, the pound has dropped 0.12% since the start of the week, driven by the volatile global market and investors seeking calmer assets.
Nevertheless, the currency has made a strong start to today, lifting 0.2% to US$1.276, meaning continued upward momentum on Friday could pull it from a month of weekly losses.
Despite the downturn, the pound still remains 0.3% up year-on-year.
A similar experience for the pound has occurred when compared to the Euro, having dropped for the last four, is now on track to fall another 0.3%.
Much of the decline in the pound was driven by the Bank of England's decision to cut interest rates last week while leaving the door open for two additional reductions later this year.
8.18am: FSTE 100 opens higher
The FTSE 100 has lifted close to 30 points to bring it near the 8,175 mark and put it in a good position for the final day of the week.
Shares in British Airways IAG lifted by around 0.5% after it said the UK airline will stop operating flights between London and Beijing later this year.
The airline had dubbed the route as one of its “most important” last year when restarting flights after the pandemic.
However, a Russian ban on western airlines entering its airspace since the start of the Ukraine war in 2022 has forced operators to fly longer and more costly routes.
British Airways is set to axe the Beijing route from October to November next year, alongside one of two daily flights to Hong Kong.
7.59am: Hargreaves Lansdown accepts takeover bid
Wealth-management platform Hargreaves Lansdown PLC has formally agreed to be taken over by a consortium of private equity firms for 1,140p per share.
The offer tabled by CVC, Nordic Capital and Platinum Ivy values Hargreaves at a 54% premium to Hargreaves’ share price on 11 April, when the consortium first approached the investment platform’s board.
It values Hargeaves at £5.4 billion.
Certain shareholders have bristled at what they see as a “two-tiered” offer for unfairly favouring the firm’s co-founders and largest shareholders.
7.35am: Not out of the woods yet
After a strong recovery yesterday afternoon and forecasts of green at the open today, the FTSE 100 has shown some strong resilience on the back of global market unrest this week.
However, according to a US bank, the prospect of continued pressure on the market is not expected to subside anytime soon.
Bank of New York Mellon analysts predict that as carry trades continue to unwind stocks will experience yet more turbulence as the yen strenghtens further.
Bob Savage, head of markets strategy and insights at BNY, said: “Expect the pain for yen shorts to remain in play for the weeks, if not months ahead.
“Further risk reductions are going to follow and August will continue to be a highly volatile month.”
7.15am: FTSE 100 to edge higher
London stocks are on track to open slightly higher on Friday, looking to close out a week which has seen sharp falls, lifts to recovery and slight murmurs of global market chaos.
Overnight in Asia, stocks performed well, with India's Nifty 50 lifting 1%, while the Nikkei 225 jumped close to 0.9%.
Over in the US, better-than-expected jobs data paved the way for a strong session last night, with the Nasdaq and S&P 500 both closing close to 2.5% higher.
Today, attention will turn to Bellway and Hargreaves Lansdown as both post-half-year results.
Yesterday, Bellway and Crest Nicholson each moved into the red after their bid deadline passed and was extended for a firm agreement over their merger.
Bellway had originally been granted until Thursday afternoon to table a firm offer for Crest Nicholson, with the deadline for an agreement now being pushed to August 20