- FTSE 100 closes at 9,136 points
- Wall Street eyes on the macros
- US economy better-than-expected
- HSBC and GSK prices underwhelm
4.52pm: FTSE 100 flat
The FTSE 100 finished Wednesday’s session less than 1 point higher at 9,136 points.
Across the Atlantic, stocks edged higher ahead of highly anticipated earnings reports from Meta and Microsoft, which will be released after markets close.
4:15pm: FTSE nearly flat as traders shrug off macros
The FTSE 100 was all-but-flat running into Wednesday’s close, down just 5 points, to 9,130.
On Wall Street, the Dow Jones was down 31 points (0.07%) at 44,601 whilst the S&P was a few points higher (0.05%) to 6,374, and the Nasdaq was up 50 points or 0.24% to 21,148.
“If markets are nervous waiting for the incoming barrage of data then they aren’t showing much sign of it,” IG Markets analyst Chris Beauchamp said in a note.
“Stock markets on both sides of the Atlantic have made headway, with the mood bolstered by the strong US ADP and GDP reports this afternoon.
“Some crumbs of dovish comfort might fall from Powell’s table tonight, though the Fed chairman is no doubt determined not to give the impression that he is bowing to the president’s wishes, especially after last week’s entertaining encounter.”
2:00pm: Wall Street is tentatively positive ahead of the open
Wall Street benchmarks are set for a cautious start on Wednesday, as investors awaited key policy signals from the Federal Reserve and major earnings from Big Tech.
Dow Jones futures point to a slightly positive start, called around 13 points higher, whilst the S&P 500 and Nasdaq are similarly tentatively positive before the opening bell.
The Federal Reserve is expected to hold interest rates steady at the conclusion of its two-day meeting, although internal divisions among policymakers and persistent pressure from President Trump have intensified the spotlight on today’s announcement.
Market focus sharpened following a double dose of economic data that surprised to the upside.
The US economy grew at an annualized rate of 3% in the second quarter, rebounding from a 0.5% contraction in the first quarter. The improvement was mainly driven by a drop in imports and a modest uptick in consumer spending.
Meanwhile, private-sector employers added 104,000 jobs in July, well above the 75,000 forecast and a strong recovery from the 23,000 job cuts recorded in June.
President Trump responded to the GDP data by renewing his calls for lower rates, urging the Fed to act immediately.
Two Fed governors, Christopher Waller and Michelle Bowman, have publicly advocated for a rate cut at today’s meeting, potentially setting the stage for the first dissenting votes in over 30 years.
While the Fed is not expected to shift rates today, chair Jerome Powell’s remarks this afternoon will be closely scrutinised for any indication of a policy pivot in September.
The rebound in economic data has cooled recession fears for now. However, concerns remain around the sustainability of this momentum, particularly with trade tensions and political uncertainty looming over the outlook.
12:30pm: FTSE treading negative waters
The FTSE 100 was traded in negative territory ahead of the Wall Street open, with market attention increasingly on interest rate outlooks and economic data.
At 9,106, London’s blue-chip benchmark was down 30 points or 0.33%.
Indeed, it has been a busier week of corporate reporting and earnings reports on both sides of the Atlantic, and some of the world’s biggest firms are still to file, nevertheless, the second half of the week is more macro-economic focussed.
“Today brings a raft of key economic and corporate data releases that undoubtably have the potential to bring significant volatility across financial markets,” said Joshua Mahony, analyst at Rostro.
“Chief amongst those will be the rate decisions from the Bank of Canada and Federal Reserve, with Jerome Powell almost certain to announce another pause in the face of ongoing inflation uncertainty.
“However, with markets pricing a resumption of the easing process in September, traders will be watching closely for any openness to a more expensive policy stance in the months ahead.”
9.03am: Novo no longer as big
One of the big market stories highlighted by Deutsche Bank's Jim Reid this morning is the "jaw dropping" plunge in Novo Nordisk (NYSE:NVO) shares yesterday, down 25% in Copenhagen this week and 22% in New York.
What was Europe’s second-largest company is now relegated to sixth with the move.
Novo's brutal session came after it slashed its sales growth forecast from 21-24% to 8-14% amid a slowdown in sales of its weight-loss drug Wegovy, and announcing a new CEO.
Shares plunged as much as -30% before recovering slightly to close -23.11% lower, which was still its largest fall since data starts in 1991, while shares in rival Eli Lilly & Co also fell over 5% as investors worried about broader sector weakness.
"What’s remarkable is that indices including Novo, like the Stoxx 600, still managed to finish higher (+0.33%), outperforming the S&P 500 (-0.30%).
"Imagine if one of the top two or three S&P 500 names dropped that much in a single session—it would be absolute chaos. For context, Microsoft, the second-largest US company, has a market cap of $3.81trn, while Novo fell from $313bn to $240bn yesterday."
Talking of Microsoft, the tech behemoth reports after the closing bell today, alongside Meta.
8.58am: Nissan closes for the day as tsunami hit Japan
Shares in Japanese carmaker Nissan are also down, but only 1.25% in Tokyo, as it temporarily shuttered some domestic factories to ensure employee safety as tsunamis hit the country after an underwater earthquake in seas to the north, near Russia.
The giant waves have also made landfall in Hawaii.
Local news agencies report three tsunami have hit Japan, the largest being 1.3 metres high.
"Japan’s chief cabinet secretary Yoshimasa Hayashi said there were no injuries or damage reported so far, and no irregularities at any nuclear plants," reports Reuters.
8.47am: Aston Martin, Mercedes and Porsche results hit by tariffs
Some car industry updates.
Aston Martin Lagonda Global Holdings PLC (LSE:AML) shares are down 5.5% after the luxury carmaker reported a wider first-half deficit and a 25% drop in revenue to £454.4 million.
The group’s operating loss increased to £134.7 million, up from £106.1 million a year earlier, as it was held back by a planned reduction in deliveries of its high-margin Specials models and by disruption linked to US tariffs.
This looks resilient when compared with Germany's Mercedes-Benz and Porsche, which have both issued profit warnings due to US tariffs and falling sales in China.
Mercedes-Benz lowered its full-year revenue outlook as it reported a near 70% drop in net profit as sales fell 12% in the US and 19% in China.
The firm estimated that without the tariffs, its car division’s profit margin would have been 6.6%, compared to the reported 5.1%.
Porsche, meanwhile, was hit with a €400 million tariff cost in the first half of the year and saw operating profit slump 91%.
8.30am: GSK down despite earnings beat
GSK PLC (LSE:GSK, NYSE:GSK) is among the fallers, though its shares are down only 0.5%, despite saying expects to deliver results at the top end of its guidance for the year and reporting a robust second quarter.
The past quarter was fuelled by strong sales in its Specialty Medicines and Vaccines businesses, helping the pharmaceuticals group increase sales 6% at constant exchange rates to £8 billion, while core operating profit rose 12% to £2.6 billion.
Sales were 2% ahead of consensus forecasts and core EPS was a 9% beat, says Shore Capital analyst Sean Conroy, as Specialty Medicines, HIV and Vaccines all were better than expected.
The board declared a dividend of 16p for the second quarter and continues to expect to pay a total dividend of 64p for the full year.
The company spent £822 million on share buybacks in the first half, as part of its £2 billion buyback programme announced earlier this year.
8.15am: FTSE 100 falls at the open
The FTSE 100 has dropped 40 points to 9,096 in early trading, led by sharp declines for HSBC and Taylor Wimpey.
HSBC, which recently grabbed the crown from AstraZeneca as the index's largest company, is down 4.3% as the initial reaction from investors is that the buyback and dividend is not enough to offset to the big profit fall.
As for Taylor Wimpey PLC (LSE:TW.), the housebuilder swung to a first-half loss due to cladding provisions and the recent industry settlement paid to the CMA.
Underlying profits were down too, with recent conditions a bit soft, though management expects improvements in the second half.
BAE Systems PLC (LSE:BA.) is down 2.2% too, after its interims also seemed to disappoint.
7.57am: HSBC profits fall
HSBC Holdings PLC (LSE:HSBA) has reported a 29% plunge in profit before tax to $6.3 billion for the second quarter, but has unveiled another $3 billion share buyback and $0.10 quarterly dividend as it said it was just a paper profit hit.
The fall in profit reflected another $2.1 billion impairment charge relating to the lender's investment in China's Bank of Communications and exposure to Hong Kong real estate, which were the major contributors to expected credit losses rising $900 million to $1.9 billion.
The new share buyback doubles the amount launched since the start of the year, with the interim dividend kept steady from the first-quarter payout.
CEO Georges Elhedery said: "We're making positive progress in becoming a simple, more agile, focused organisation built on our core strengths.
"In the first half, we continued to execute our strategy with discipline and each of our four businesses sustained momentum in their earnings with each growing revenue. This gives us confidence in our ability to deliver our targets.
"We continue to navigate this period of economic uncertainty and market volatility from a position of strength, putting the changing needs of our customers at the heart of everything we do."
7.41am: BAE loads up higher guidance
BAE Systems PLC (LSE:BA.), one of the most popular shares in the FTSE 100 so far this year, has upgraded its full-year guidance following a solid financial and operational performance in the first half of 2025.
The defence giant grew sales 11% to £14.6 billion, while EBIT was up 13% at £1.55 billion and reported operating profit inched up 2% to £1.3 billion to reflect amortisation from last year's acquisitions.
Full-year sales are now expected to grow by 8-10%, up from previous guidance of 7-9%, while underlying EBIT is forecast to increase 9-11%, up from 8-10%.
Guidance for underlying earnings per share remained unchanged at 8-10%, as the strong share price increase since the start of the year is expected to result in fewer shares being repurchased under the ongoing share buyback.
The dividend was hiked 9% too.
7.26am: IPF in takeover talks
On top of all the big results out today, International Personal Finance (LSE:IPF) has announced that it is in "advanced discussions" about potentially being taken over by US lender BasePoint Capital.
Shareholders in the FTSE Small Cap group would receive 220p per share in cash, under the current terms being discussed, as well as the interim dividend of 3.8p declared separately in half-year results today.
A total value of 223.8p per share is up 25% from the closing price yesterday and 54% above the average over the past six months
"The board is confident in its strategy and in the company's standalone future, recognising the strong performance to date outlined in the 2025 half year results released today.
"However, it has carefully considered the possible offer with its advisers and has concluded that the possible offer is at a value that the board would be minded to recommend unanimously to IPF shareholders," the company said, should a firm intention to make an offer be made.
7.16am: FTSE 100 set to slip
FTSE 100 predictions were in the red ahead of the open on Wednesday, but things could change with a mass of blue-chips reporting results.
Futures for the London benchmark were down seven points, slicing the top off the 55 points gained the day before when the index finished at 9,136.3.
Most Asian markets are in the red this morning, including a 1.6% fall for Hong Kong's Hang Seng, while countries brace for the impact of tsunamis after a massive earthquake off the east coast of Russia.
Overnight in the US, stock markets had an off day, with the S&P 500 dropping 0.3%, the Nasdaq declining 0.4% and the Dow Jones falling 0.5%.
"Wall Street pulled back slightly as market participants positioned for a jam-packed 72 hours," says market analyst Kyle Rodda at Capital.com.
While the US Fed is expected to keep interest rates unchanged later, "the attention is on the guidance", he says, "especially given the almost unprecedented intensity of the White House’s pressure campaign on the central bank to lower interest rates."
7.07am: FTSE 100 Live on Wednesday 30 July
We're midweek, with the largest company in London and two of the largest in New York reporting results, plus the US Federal Reserve announces its latest policy decision under the moody glare of President Trump.
HSBC Holdings PLC (LSE:HSBA) has taken the crown this month as the largest company in the FTSE 100, though the bank is undergoing a process to find a new chair as Mark Tucker is stepping down in September.
The lender, which is undergoing a shake-up under CEO Georges Elhedery, has been reported as examining a sale of its Australian retail banking business and planning an expansion of its private credit business, which both could be mentioned.
As for the numbers, analysts at Shore Capital said HSBC might face some margin pressure following recent interest rate declines in Hong Kong.
BAE Systems PLC (LSE:BA.) has been one of the most popular buys for retail investors in recent months, gaining prominence as the largest name in the UK defence sector as the UK joined other European governments in pledging to hike security spending.
The company got a boost as the UK outlined plans to buy nuclear-capable F-35s jets, and furthermore as the UK also agreed to sell Typhoon jets to Turkey.
Despite a 60% rise in the shares, analysts have said there could be further to run following the UK’s latest Strategic Defence and Security Review last month.
Elsewhere, GSK PLC (LSE:GSK, NYSE:GSK) reports fresh from receiving a serious blow to its oncology ambitions from a US advisory committee, which wiped more than £3 billion from its market value and sent analysts rushing to trim forecasts.
With Blenrep seen as a key growth driver between 2025 and 2031, investors will be keen to hear how management's outlook has changed.
Glencore PLC (LSE:GLEN) shares have struggled since May last year, down 25%, or over 40% below the MSCI Europe index.
Weak results and a slump in coal prices are blamed, but some analysts expect a turnaround, with group production set to ramp up sharply in the second half of 2025, driven mainly by copper.
Later in the day, it's the Federal Reserve decision, though the US central bank is expected to keep interest rates on hold, having held off from cutting interest rates since December, despite pressure from President Trump.
Also, after the closing bell, Microsoft Corp (NASDAQ:MSFT) and Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB) both report. For Microsoft, its Azure cloud business and Copilot artificial intelligence momentum could help boost earnings, analysts say.
For Meta, a strong period for advertising is expected, while the Instragram owner's aggressive push into artificial intelligence is also a focus.
Announcements expected:
Trading updates: GSK, Oakley Capital Investments, Sage Group, Strix Group
Interims: Alfa Financial Software, Aston Martin, BAE Systems, Bodycote, Conduit Holdings, Franchise Brands, Glencore, Greencoat UK Wind, Hostelworld Group, HSBC Holdings, Rathbones Group, RHI Magnesita, Man Group, Rio Tinto, SEPLAT Energy, Taylor Wimpey
Finals: Hargreaves Services, Ondo Insurtech, SDI Group
Overseas earnings: ADP, Etsy, Fiverr International, Kraft Heinz, Takeda Pharmaceutical (all pre-market), ARM Holdings, Ford Motor, Markel Group, Meta Platforms, Microsoft Corp, Qualcomm (all afterhours)
Economic announcements: Retail Sales (GER), Business Climate Indicator (EU), Consumer Confidence (EU), Economic Sentiment Indicator (EU), Industrial Confidence (EU), Services Sentiment (EU), MBA Mortgage Applications (US), Pending Homes Sales (US), Crude Oil Inventories (US)