- FTSE 100 up 10 points at 10,896
- Wall Street lower
- Hochschild Mining jumps 8.31%
- Fresnillo and Antofagasta buck weaker commodities
4.04pm: Blue-chip index closes in on 11,000 as tech-free index proves its worth
Heading towards the London close, the Footsie was in the green (just) and edging further towards the next big round number.
Early weakness met fresh buying, in what has become a familiar pattern this week.
London's lack of technology exposure worked in its favour once more, with Nvidia's results only hours away and Wall Street reluctant to commit ahead of them.
European markets have had a decent week overall, helped by the reversal in oil prices, and Wednesday's bargain-hunting in crude did nothing to dent the rally.
Gold went the other way, with the metal suffering from altitude sickness after a run extended by intervention from Washington.
Friday's speech from Federal Reserve chairman Kevin Warsh now looms large, with September's rate decision in view.
2.42pm: Footsie edges up as sticky US inflation greets Wall Street
The FTSE 100 blipped higher in mid-afternoon trading after drifting sideways for most of the session.
US stocks were flat to slightly lower after the inflation reading landed. The Dow Jones Industrial Average slipped 0.1%, the S&P 500 dipped just below the line and the Nasdaq Composite fell 0.1%.
Core personal consumption expenditures, the Federal Reserve's preferred gauge, rose 3.3% in July, matching forecasts and the previous month.
Sticky, in other words, and unhelpful for policymakers heading into Jackson Hole, where chairman Kevin Warsh speaks this week.
Meta rose after agreeing to settle claims from 29 states that it designed products to hook young users, at a cost of roughly $16.7 billion.
Abercrombie & Fitch (NYSE:ANF) jumped 13% on raised guidance. Nvidia reports after the closing bell, the quarterly verdict on the artificial intelligence trade.
1.02pm: Footsie drifts as traders wait on US inflation and Nvidia
Volumes thin ahead of the Bank Holiday weekend, with the big tests both coming from America
The FTSE 100 traded sideways into the afternoon, with corporate news at a premium and volumes down to a trickle.
Blame the usual August lull, and a long Bank Holiday weekend that is still days away but already shaping behaviour.
The action, such as it is, sits across the Atlantic. US futures were flat, with the Dow and S&P 500 hugging the line and the Nasdaq 100 down 0.2%.
Core personal consumption expenditures, the Federal Reserve's preferred inflation gauge, lands at 8.30 am ET and is forecast to hold at 3.3%.
Then Nvidia reports after the closing bell, now the quarterly health check for the whole artificial intelligence trade.
11.35 am: Hochschild powers mid-caps as miners outperform
The FTSE 100 remained modestly lower late Wednesday morning, threatening to end a six-session winning run, while mid-cap and AIM shares pushed higher.
London’s blue-chip index fell 12.89 points, or 0.12%, to 10,873.27, having traded between 10,855.62 and 10,896.42. The FTSE 250 moved in the opposite direction, advancing 71.63 points, or 0.29%, to 24,927.68.
Hochschild Mining was the standout mid-cap performer, surging 8.31%, or 52p, to 677.5p from its previous close of 625.5p.
The rise came despite gold easing around 0.9% to approximately $4,615 an ounce. Bullion nevertheless remained close to its recent three-month high following a strong monthly advance.
Fresnillo added 2.11%, or 67p, to 3,243p from 3,176p, providing support to the FTSE 100. Copper producer Antofagasta was also among the leading blue-chip gainers, rising around 3%.
Copper traded near US$6.70 per pound, down slightly during the session but still close to its recent record and more than 51% higher than a year ago.
The broader market remained mixed. The FTSE 350 and FTSE All-Share each eased 0.07%, while the FTSE AIM UK 50 climbed 0.53%, the AIM 100 gained 0.25% and the AIM All-Share advanced 0.21%.
Among small caps, Mothercare surged 28.57%, or 0.20p, to 0.90p from 0.70p. ProService Building Services Marketplace rose 17.40%, adding 0.42p to 2.80p.
10.10 am: Miners lift FTSE from early low
The FTSE 100 recovered from its early decline to trade broadly flat near 10,880, having fallen as low as 10,855.62 after the opening bell.
Mining stocks led the recovery as copper climbed to a fresh record of around US$6.72 per pound. Fresnillo gained 2.2%, while copper producer Antofagasta advanced 2.1%.
Gold eased 0.7% to around US$4,627 an ounce but remained close to its recent 3-month high.
Mid-caps continued to outperform, with the FTSE 250 adding 0.25% to approximately 24,919. Hochschild Mining jumped 7.9% following its interim results. The shares traded as high as 677p, up 8.2% from their previous close of 625.5p.
Oil companies remained the biggest drag on the blue-chip index as Brent crude fell 3.1% to around US$85.85 a barrel. BP declined 2.4% and Shell lost 1.4%.
Sage was the FTSE 100’s largest faller, down 3.2%, while 3i Group and Experian dropped 1.7% and 1.5%, respectively.
The session remained mixed rather than broadly risk-off, with mining strength and mid-cap gains offsetting weakness among oil majors and technology-related shares.
9.15 am: Mid-caps advance as FTSE 100 remains in the red
The FTSE 100 remained around 0.2% lower at approximately 10,865 after falling as low as 10,856, leaving its six-session winning run under threat.
The FTSE 250 moved in the opposite direction, adding 0.2% to 24,909 and approaching its morning high.
Sage led the FTSE 100 fallers with a 2.9% decline. BP dropped 2.8% and Shell lost 1.7%, while 3i Group and Centrica fell around 1%.
Brent crude extended its retreat to around US$86.30 a barrel, down 2.6%, as investors assessed less severe-than-expected US sanctions against Iran and discussions over a temporary Strait of Hormuz shipping corridor.
Antofagasta led the blue-chip risers with a 2% gain. Airtel Africa and British Airways owner IAG advanced around 1.6%, while InterContinental Hotels and Halma were also higher.
Copper held near US$6.71 per pound and remained close to record levels. Gold eased 0.7% to approximately US$4,627 an ounce but was still up around 13.5% during August.
Hochschild Mining led the FTSE 250, climbing 7% following its interim results. Bloomsbury Publishing and Bytes Technology gained around 3.5%, while IP Group rose 2.8% and Watches of Switzerland added 2.6%.
The FTSE SmallCap edged 0.1% higher. Headlam gained 9.6%, while Applied Nutrition rose 6.4% following its stronger-than-expected annual trading update.
Among London’s micro-caps, Mothercare jumped 21.4% to 0.85p, Proservice Building Services Marketplace rose 17.4% to 2.8p and Gem Resources gained 16.7% to 0.35p.
8.15 am: BP and Shell offset gains for miners
The FTSE 100 opened broadly flat before slipping around 0.1% to 10,880 as weakness in BP and Shell offset gains across the mining sector.
BP fell 2.3%, and Shell declined 1.1% after Brent crude dropped 2.2% to US$86.60 a barrel. Oil extended its decline after Washington’s threatened “economic D-Day” sanctions against Iran proved less aggressive than feared and stopped short of immediately penalising Tehran’s trading partners.
Reports that Iran and Oman discussed a temporary maritime corridor through the Strait of Hormuz also reduced concerns about further disruption to oil shipments.
Miners moved higher as copper reached a record US$6.73 per pound. Anglo American gained 1.6%, Antofagasta rose 1.5% and Fresnillo added 1.2%.
Gold eased 0.6% to around US$4,631 an ounce but remained close to a three-month high. Bullion is up approximately 13.6% during August and is heading for its strongest monthly percentage gain since September 1999.
Lower oil prices supported travel stocks, with British Airways owner IAG advancing 1.2%.
The FTSE 250 outperformed with a 0.1% gain. Applied Nutrition jumped 8.4% to 348.5p, having reached 350p, after reporting annual revenue of £160 million and adjusted EBITDA of approximately £43.3 million, both ahead of market expectations. Hochschild Mining rose around 5% following its interim results.
The FTSE SmallCap and AIM All-Share were broadly flat to marginally higher.
Asian trading was mostly positive. The Nikkei 225 closed 0.6% higher, while the Hang Seng gained 0.8%, South Korea’s Kospi rose 1% and the Shanghai Composite added 0.6%.
Australia diverged from the region. The ASX 200 closed 0.4% lower at 9,127.8 after reversing from an intraday high of 9,220.6.
7.00 am: Lower oil and Asian gains support London
The FTSE 100 is expected to open modestly higher after gains on Wall Street and across most Asian markets.
FTSE futures were up 13 points, or 0.1%, at 10,922.5. The cash index closed Tuesday 31.84 points higher at 10,886.16.
Asian trading was broadly positive. The Nikkei 225 gained 0.7%, the Hang Seng and Shanghai Composite rose 0.7%, and South Korea’s Kospi added 0.9%.
Australia moved against the regional trend, with the ASX 200 down 0.3% at 9,134 after giving up an earlier advance.
Copper climbed 0.6% to around US$6.75 per pound, reaching a record as declining inventories and production disruption sustained supply concerns. The move could support Antofagasta, Anglo American, Glencore and Rio Tinto.
Gold eased 0.4% to approximately US$4,640 an ounce but remained near a three-month high. Bullion has gained almost 14% during August and is on course for its strongest monthly advance since 1999, potentially maintaining interest in Fresnillo and Endeavour Mining.
Brent crude fell 1.8% to around US$87 a barrel as diplomatic efforts raised hopes of improved shipping access through the Strait of Hormuz. BP and Shell may face pressure, while airlines and other fuel-sensitive companies could benefit.
Bitcoin fell 2.1% to approximately US$79,000. Attention later turns to Nvidia’s quarterly results, due after Wall Street closes, which will provide the next major test of enthusiasm surrounding artificial intelligence.
Nvidia publishes its quarterly results at approximately 9.20 pm BST, followed by its conference call at 10 pm. The figures are likely to determine the next major move in global technology and AI-related shares.
