- FTSE 100 down 43 points to 8,552
- Trainline shares skid lower
- Vodafone CFO to exit
- Traders risk-averse, eyeing Fed
- China cut rates and agrees to trade talks
4:15pm: FTSE heads to lower close
As the London session heads toward the close, it is pretty much where it began – on the backfoot, breaking a sixteen-day winning streak.
The FTSE 100 is down 43 points, 0.51%, at 8,552 ahead of Wednesday’s close.
Attention is on this evening’s appointment at the Federal Reserve as the US central bank convenes to make a call on the US economy.
Trump has been calling on Fed chair Jerome Powell to cut rates for some weeks now, hoping interest rate stimulus can help fend off recession fears post ‘Liberation Day’ tariffs and the ‘trade war’ with China.
China’s rate setters, meanwhile, bolstered strategically overnight.
“Markets are anxious to hear Powell’s views on the economy this evening, and whether the Fed chairman will give any indications that he might cut rates in June, joining other central banks,” IG Markets chief market analyst Chris Beauchamp said.
“China’s overnight stimulus moves are likely the kind of thing the president and global investors would like to see from the Fed, but caution will stay Powell’s hand for the time being.”
2:46pm: Wall Street makes positive start
Wall Street has got up on the right side of the bed, with the major benchmarks all opening higher in a midweek rebound after a two-day fall to start the week.
The Dow Jones has gained 0.4% in early trading, with the S&P 500 rising 0.2% and the Nasdaq Composite just under 0.1%. The Russell 2000 index of small caps has added 0.4%.
Disney is the top rise in the Dow and one of the big risers in the S&P 500, up 10% on the back of earnings from the House of Mouse earlier.
Among big tech, Palantir climbed 2.2% and Amazon was up 1.5%, with other trillion-dollar names up around 0.5% and Microsoft flat.
1.29pm: AIM stocks are 'dramatically oversold'
London’s AIM market is now "dramatically oversold" and could be poised for a rebound in the second half of 2025, according to new research from broker Turner Pope.
After enduring a bruising multi-year retreat, the junior index is trading almost 40% below its 10-year average and 60% below the FTSE All-Share on a relative basis.
The research argues that the worst may now be behind it. Liquidity is gradually improving, weaker companies have largely exited, and what remains is a smaller pool of better-managed businesses with valuable assets and global intellectual property.
According to Turner Pope, AIM’s valuation gap is now “extraordinary” and ripe for a correction as economic conditions shift.
12.40pm: Mortgage changes proposed
The US financial watchdog has outlined proposals aimed at making it easier and more affordable for homeowners to manage and amend their mortgage arrangements.
The Financial Conduct Authority has launched a consultation exploring changes to current rules, with a focus on helping borrowers reduce their mortgage terms or switch lenders more easily.
Under the plans, homeowners could be allowed to shorten their mortgage without undergoing a full affordability check, potentially lowering lifetime interest costs and reducing the risk of carrying debt into retirement.
The FCA also wants to streamline how borrowers engage with mortgage providers, while ensuring access to advice remains available.
The regulator says the proposals support its wider consumer protection strategy and follow the rollout of its Consumer Duty framework in 2023. It will evaluate the changes through firm supervision and complaint monitoring.
The consultation is open until 4 June, ahead of a broader review of the mortgage market later this year.
12.14pm: FTSE sloshing sideways, US futures pointing higher
The FTSE 100 is wading sideways, 0.3% under water, though the FTSE 250's earlier losses have been cut.
Trainline's earlier 8% losses have been trimmed to under 4%, which is helping the mid-cap index.
Other European benchmarks are also in the red, though Germany's DAX is almost flat.
Looking across the Atlantic, futures for the main US stock indices are all higher after confirmation of the US-China talks.
Dow Jones futures are up 0.75%, with the S&P 500 and Nasdaq 100 both just under 0.7% to the good.
11.32am: WH Smith buyer in for Poundland
Modella, the investment company that has bought WH Smith's high street arm, is on the shortlist of buyers for Poundland.
This is according to a Sky News report, which says the Hobbycraft owner has made it through to a second stage of the auction for the discounter.
Modella has already snapped up three major British retail chains in less than nine months, also buying The Original Factory Shop.
The firm agreed to buy WH Smith's high street chain for £76 million in March, saying it will rebrand the stores under the name TG Jones.
10.44am: Pharma weighs on the FTSE
The FTSE 100 is heading lower in a determined way as the session continues, pulling back from the 8,600 level.
This reflects investors assessing the "broad risk spectrum", says Saxo Markets' Neil Wilson, on one side buoyed by US-China trade talks but on the other perhaps concerned about India-Pakistan tensions, plus we have the Fed tonight and Bank of England tomorrow.
AstraZeneca PLC (LSE:AZN) and GSK PLC (LSE:GSK, NYSE:GSK) are down 1.8% and 4% respectively on the back of an appointment by Donald Trump "that could be negative for vaccine makers", says Wilson.
AstraZeneca, the index's biggest weight, and GSK fell after the US Food and Drug Administration appointed Vinay Prasad as head of its Center for Biologics Evaluation and Research.
"He's there to tighten up vaccine approvals - it could be much longer approval timelines for new drugs and we saw 20-30% declines among some US biopharma names yesterday."
Josh Mahony at Scope Markets calls the mood for European markets "rather uncertain" as traders weigh up the potential for progress between the US and China, with talks due to get underway tomorrow in Switzerland.
"The response to that news has been surprisingly muted, with the Shanghai composite providing the one bright spot as domestic Chinese optimism builds," Mahony says.
"Nonetheless, coming off the back of a one-month period that has seen sharp gains for the DAX (+17%), IBEX (14%), eurostoxx (13%), FTSE 100 (11%), and CAC (10%), it comes as no surprise that much of the upside of a resumption in US-China trade talks have been baked in."
The DAX remains within touching distance of the all-time high of 23,479, with data this morning showing factory orders jumping 3.6% in March, representing the strongest monthly increase since December as demand came particularly from other euro area nations (8%), while domestic (2%) and ROW (2.8%) demand also remained healthy.
Looking ahead, Mahony says today’s Fed meeting provides the main event, with traders "watching out for commentary from Powell over the direction of travel for rates in the face of economic uncertainty. The sheer number of unknowns mean that we are highly unlikely to see the Fed cut rates this time around. However, the events of the past week have also seen markets lose confidence over the potential for a June cut, with a pause going from a 33% outside chance to the 70% base case."
9.53am: UK construction PMI remains negative
The UK construction purchasing managers’ index edged up to 46.6 in April from 46.4 in March but remained well off the 50 mark that separates growth from contraction.
“Construction companies widely noted that heightened business uncertainty and worries about the broader UK economic outlook had weighed on client demand.”
Housebuilding activity declined but at a slower rate than other sectors.
9:45am: Small-cap headlines
HeLIX Exploration PLC (AIM:HEX) has mobilised flow testing equipment to two of its Montana wells as it targets near-term helium production.
Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) announced a peak production rate of nearly 2,850 barrels of oil equivalent per day at its Utah well, achieved without fracture stimulation.
Hercules Site Services PLC (AIM:HERC) expects first-half revenues to surpass £54 million, a 17% increase year-on-year, driven by strong demand from UK infrastructure projects.
Shares in Ocean Harvest Technology Group PLC (AIM:OHT) tumbled 71% on Tuesday after the seaweed-based animal feed group warned it urgently needs fresh funding to stay afloat beyond mid-June.
Kazera Global PLC (AIM:KZG) shares rose 14% after the investment company secured a $11.9 million arbitration award in a long-running dispute over the sale of its African Tantalum subsidiary.
8:50am: FTSE traders keep eyes on US Fed
In London, the blue-chip benchmark was down around 24 points (0.28%) to 8,573 as traders take a cautious view ahead of this afternoon’s Federal Reserve meeting in the United States.
The FTSE 100 so far looks set to break its sixteen-session of ‘winning’ days in a row, which is a new record.
With Trump tariffs dominating so much attention and the US economy seemingly driving towards a self-inflicted recession, eyes are the central bank and more specifically on Fed chair Jerome Powell to see whether he flinches.
Trump has been calling on Powell to cut rates, to give the President some economic oxygen (in the form of cheaper interest rates).
But, of course, with the US consumer seeing import costs driving the cost of living ever higher the central bank will fear not only slowing growth but also the persistent spectre of inflation.
In terms of optics and politics, China ratcheted some extra pressure overnight as the People’s Republic eased its rates – a move not likely to go unnoticed in the Whitehouse.
For weeks there’s been speculation that Trump may even seek to sack Powell if he doesn’t soon bend to lower American borrowing costs.
Looking further down the calendar, trade talks are expected between the US and China this weekend, adding to the ‘risk off’ view during this shortened trading week.
"Concerns about how Trump’s tariff wars will play out are still causing jitters, even though the door is open to a deal with China, with talks scheduled for this weekend,” commented Hargreaves Lansdown’s head of money and markets Susannah Streeter.
"There’s a pause for breath for the Footsie ahead of key interest rate decisions from the Fed and the Bank of England, as investors await the take from central bankers about the current risks to the global economy."
The BoE meets tomorrow, but nobody is expecting big surprises or fireworks with a decision to reduce the rate to 4.25% widely anticipated (and generally priced in).
8:40am: Card Factory shares in red
Card Factory’s upbeat financial results had been well signposted back in the January trading update, and themselves had no surprises for investors.
It reported a 6.2% increase in revenue to £542.5 million for the year ended 31 January., whilst adjusted profit before tax rose 6.3% to £66 million.
Like-for-like store sales were up 3.4%, supported by category expansion and targeted price increases.
But, the shares moved southwards in Wednesday’s early deals as a lack of explicit longer-term forecasts raised some eyebrows in the City – as did the omission of an update on the firm’s digital strategy.
"FY26 guidance maintained but medium-term guidance moves away from explicit targets for FY27, and now guides to mid to high single digit % growth for revenue and PBT,” Panmure Liberum analyst Wayne Brown commentated.
"Against a backdrop of lower volumes, the company may need to provide comfort on store roll-out and with no details on a digital strategy will probably detract some from looking at the investment case.”
Brown, nevertheless, rates Card Factory as a ‘buy’ with a price target of 150p.
In London, the greetings card retailer saw its share price fall around 3.6% to just over 96p.
8:25am: Vodafone down as CFO heads for exit
Vodafone Group PLC (LSE:VOD) shares started some 1.7% lower on Wednesday, at 71.72p, after it announced that chief financial officer Luka Mucic will step down by early 2026.
He is to become chief executive of German real estate company Vonovia, prompting a search for his successor at a time of ongoing transformation at the telecoms group.
Mucic, who joined Vodafone in 2023, is leaving to return to his native Germany and take the top job at one of the country’s largest listed property groups. Vodafone said a search for his replacement is already underway.
8:15am: Trainline shares skid lower amid investor pessimism
Trainline’s financial results statement on Wednesday was insufficient to arrest the slide in its share price.
Falling just over 7%, to 260p, the train ticketing app’s share price is now down close to 20% for 2025 to date.
In terms of numbers, meanwhile, Trainline reported a 12% rise in net ticket sales to £5.91 billion for the year ended 28 February 2025. It said group revenue grew by 11% to £442 million, whilst earnings (adjusted EBITDA) rose 30% to £159 million.
This was largely flagged already, in March, meanwhile the shares are seen to be pricing in pessimism over the outlook for tourism in the UK and Europe.
Shore Capital, which rates Trainline as a ‘buy’, says "the bad news" being priced in comes despite the app being "well-positioned to scale" at home and abroad.
8:05am: FTSE loses almost 20 points at the open
Opening prints on Wednesday saw the FTSE 100 start the session around 20 points lower.
By 8:05am, the index was off nearly 17 points at 8,580, marking a 0.2% dip.
7:20am: FTSE 100 seen slightly lower
The FTSE 100 is expected to open slightly lower on Wednesday, potentially ending its 16-day up streak.
Spreadbetting and CFDs firm IG see London’s blue-chip benchmark losing around 8 points at the open, to 8,588.
Tuesday's close saw the index gain just 1 point, and, caution ahead of the US Federal Reserve’s interest rate decision later today appears to be weighing on sentiment, with investors reluctant to take on risk.
Markets are also focused on upcoming trade talks between the US and China, set to take place in Switzerland.
Optimism had risen that these discussions could lead to tariff reductions, though the current levels, 145% on Chinese goods into the US and 125% on US goods into China, remain extraordinarily high – as are the political stakes.
The People's Bank of China has responded to tariffs by cutting the reserve requirement ratio and reducing its short-term policy rate to 1.4%, as Beijing sought to support Chinese lending and economic activity.
In global markets, Wall Street closed lower on Tuesday, with the Dow falling 1%, the S&P 500 down 0.8%, and the Nasdaq losing 0.9%.
Asian markets traded modestly higher overnight, supported by the Chinese stimulus.
The Shanghai Composite gained 0.6% and the Hang Seng rose 0.8%. Tokyo’s Nikkei 225 added 0.1%.
Nevertheless, the general vibe remains one of subdued risk appetite, with traders positioning ahead of the Fed announcement.
Currency markets were mixed. The pound weakened slightly against the dollar to USD1.3352, while the euro strengthened.
Meanwhile, Brent crude remained broadly flat near USD62.60 per barrel. In the background, UK and US officials are reportedly close to finalising a limited trade pact to reduce the impact of US tariffs on UK steel and cars, providing some relief amid wider trade tensions.
5am: What to watch on Wednesday
Wednesday brings the first Federal Reserve interest rate decision since Donald Trump’s recent public criticisms of the central bank’s chair, Jerome Powell, with his threats to replace him spooking markets last month. Economists and analysts believe Powell will resist for now.
In company news, Trainline PLC (LSE:TRN) results, analysts said investors will not be looking at arrivals but the numbers on the departures board, as the headline figures are largely known, with any shift in the outlook being the key.
JD Wetherspoon PLC (LSE:JDW) shares declined sharply in the wake of its half-year results in March but have been bubbling up in recent weeks ahead of this update.
Announcement due on 7 May:
Trading updates: Burford Capital, Flutter Entertainment, Georgia Capital, MaxCyte, Wetherspoon (JD)
Interims: Smiths News
Finals: 1Spatial, Card Factory, Trainline
Overseas earnings: Barrick Gold, Disney, Fiverr International, Novo Nordisk, Uber Technologies (all premarket), AMC Entertainment, ARM Holdings, Occidental Petroleum (after)
AGMs: Airea, Aston Martin Lagonda, Barclays, Franchise Brands, Hostelworld Group, NCC Group, Primary Health Properties, Rentokil Initial, RHI Magnesita NV, RM, Synectics, Tritax Big Box REIT
Economic announcements: Construction PMI (UK), Producer Prices Index (EU), Factory Orders (GER), Retail Sales (EU), MBA Mortgage Applications (US), Crude Oil Inventories (US