- FTSE 100 closes up 17 points at 9,165
- Dow and Nasdaq open higher
- Beazley leads the fallers
- Builders lower after Persimmon update
4.52pm: Global stocks higher
The FTSE 100 added 17 points to finish Wednesday’s session at 9,165, as stocks globally traded at record highs.
“Asian, US and the MSCI All Country World index build on this week's sharp gains amid hopes of two Fed rate cuts being seen by year-end,” IG senior technical analyst Axel Rudolph said.
“The current "Goldilocks" scenario of moderate growth and stable inflation - allowing for market-friendly monetary policy - propels global stock markets higher.”
Oil prices, meanwhile, dropped to a two-month low, trading at about $64.50 per barrel.
“The price of WTI crude oil fell after forecasts from the IEA and US government predicted a growing oil surplus and record-high inventories by mid-2026, with US output peaking this year before declining,” Rudolph said.
“Traders are also watching the upcoming US-Russia summit on Ukraine, where Kyiv’s rejection of Russian territorial demands could influence the future of US sanctions on Russian oil.”
3.33 pm: US markets push higher
The Dow Jones (+230 points) making strong headway in the first hour of trading in New York on renewed hopes that the Fed will take its clippers to interest rates after a benign CPI reading on Tuesday.
Here in the UK, the Footsie was stuck in a rut, albeit (narrowly) in positive territory, with London's traders seemingly taking a siesta.
1.15 am: Beazly takes a tumble
Beazley shares are down 8% after the Lloyd’s of London insurer reduced its guidance for the year.
It came as the company reported a near one-third drop in half-year profit, squeezed by slowing premium growth, higher expenses and heavier claims.
Pre-tax profit for the six months to 30 June slid to US$502.5 million from US$728.9 million a year earlier, as gross written premiums rose just 2% to US$3.19 billion, well below last year’s pace.
The combined ratio deteriorated to 84.9% from 80.7% on the back of Californian wildfires, ransomware incidents and rising US litigation costs.
Operating expenses jumped, driven by incentive payments and technology investment. While investment income climbed to US$308.5 million, it could not offset the weaker underwriting result. Guidance for a mid-80% combined ratio was maintained.
Peel Hunt said: " Beazley is reducing its premium growth guidance down to low-to-mid single digits for 2025, given signs of a more competitive market whilst maintaining guidance for a mid-’80s CoR [combined ratio]."
10.10 am: Persimmon trims outlook
Persimmon shares fell around 3.4% after it slightly lowered its 2026 profit guidance.
The housebuilder’s first-half results were solid: completions rose 4% to 4,605, helped by a 5% improvement in sales rates, while the average selling price climbed 8% to £284,000.
Operating profit increased 13% to £172 million, with pre-tax profit up 11% to £165 million. The interim dividend was held at 20p and net cash stood at £123 million.
Peel Hunt noted that 2025 targets are unchanged, but 2026 will see only modest margin growth as older, less profitable land continues to weigh on returns.
This prompted the broker to trim its 2026 profit forecast by 3–4%, mainly on margin assumptions.
At 1,096.55, the shares trade on about 7.5 times forecast 2026 earnings, offering a 5.5% yield. The broker says 'buy' up to 1,350p.
9.15 am: London drifts higher in summer lull as Wall Street’s record run steals the spotlight
The FTSE 100 is 14 points to the good at 9,162, inching higher despite a lacklustre backdrop and low summer volumes.
London’s blue-chips are treading water while investors bask in the afterglow of Wall Street’s record-breaking rally, powered by softer-than-expected US inflation data.
The numbers eased fears that President Trump’s tariffs would bite harder, sparking hopes the Federal Reserve will cut rates more aggressively.
Adding fuel to the fire, US Treasury Secretary Scott Bessent urged a half-point rate cut as soon as next month, a move that could further juice equities but raises questions over the Fed’s independence.
Asian markets duly picked up the baton overnight, but in London the mood remains firmly on holiday setting.
BAE Systems tops the leaderboard, up 2%, while Beazley finds itself firmly at the bottom, tumbling 8% after poorly received results.
Oil traders are in retreat, Brent sliding under $66 on optimism over a Ukraine deal, though simmering tensions in Iran and Eastern Europe keep the market twitchy.
Sterling is striding higher, breaking through $1.35 as the dollar wilts on rate cut speculation. It’s a day where the Footsie is moving forward – just without breaking a sweat.
8.15 am: Blue-chips make positive start
The FTSE 100 got off to a positive start, buoyed by US and Asian markets, which spiked higher after the US inflation print after hours raised hopes the Fed will start cutting interest rates.
The stand-out mover on the blue-chip index was Lloyds insurer Beazley, down 6% after its interims were marred by rising costs and payouts. Barratt Redrow also inched lower.
Persimmon gave back all of the gains posted after Bellway's buoyant update on Tuesday as the builder weighed in with a more realistic assessment of the housing market.
7.10 am: US stocks soar; Footsie set for subdued, but positive start
Someone lit the blue touchpaper over on Wall Street after the release of US inflation figures. Amid fears of a surge in the cost of living Stateside, the print, largely in line with forecasts, put a rocket up stocks, with Dow climbing 1.1%, or 483 points and Nasdaq surging 1.4%, or almost 300 points, after hours.
The ripple effect was felt in Asia, and here in the UK, the FTSE 100 looks set to open 14 points to the good at 9,161.88.