London midday: FTSE falls ahead of tech earnings, Fed announcement

(Sharecast News) - London stocks had extended losses by midday on Wednesday as investors eyed the latest policy announcement from the Federal Reserve and earnings from three of the 'Magnificent Seven'.

The FTSE 100 was down 0.4% at 10,166.09.

Emma Wall, chief investment strategist at Hargreaves Lansdown, said: "It's a big day for Big Tech as the market awaits earnings from Meta, Microsoft and Tesla later today - and Apple reporting tomorrow.

"These are the companies which can move not just their own share price but that of the whole market, and in particular the eagle eared will be listening to Elon Musk's commentary on the earnings call where more detail is often provided on financial forecasts and long-term strategy for the business."

As far as the Fed is concerned, expectations are for interest rates to remain at 3.5% to 3.75%. Wall said Chair Jerome Powell's statement may trigger volatility. "Powell has been vocal in recent weeks about the President's plot to oust him and some market twitchers expect further comment today - potentially even regarding Powell's intentions to stay on the Committee after his term as Chair ends this year.

"Technically he can stay on the Committee until January 2028, which the market will interpret as higher for longer, for even longer, interest rates."

In equity markets, the likes of GSK and AstraZeneca, which derive a significant chunk of their earnings in US dollars, were hit by weakness in the US currency.

Susannah Streeter, chief investment strategist at Wealth Club, said: "The dollar has shot off on another slippery slide, as Trump's spin on the currency's decline sparked another drop in confidence. The dollar's drop is giving extra shine to gold, which is on a seemingly unstoppable run upwards.

"The pound is now at levels not seen since September 2021, touching $1.37 before falling back slightly. The sharp moves in currencies, with sterling strengthening are acting as a dampener on the FTSE 100. It puts pressure on the overseas earnings of listed multinationals, with pharma giants GSK and Astra Zeneca, chemicals company Croda, and fashion house Burberry among the fallers in early trade."

Burberry was also knocked lower by disappointing results from French luxury group LVHM.

Pets at Home rallied after saying full-year underlying earnings were set to be in line with expectations despite a fall in third-quarter revenues.

British Land edged lower after agreeing to buy Life Science Reit as it looks to ramp up its presence in the fast-growing science and technology sector. The deal values Life Science Reit, which last autumn said it would pursue a managed wind down, at �150m, a premium of around 21%.

Life Science Reit, whose shares shot up nearly 20% on the news, said it now believed a sale would provide a "superior outcome" for shareholders.

Market Movers

FTSE 100 (UKX) 10,166.09 -0.41%

FTSE 250 (MCX) 23,425.26 0.09%

techMARK (TASX) 5,918.85 -0.45%

FTSE 100 - Risers

The Sage Group (SGE) 1,011.00p 2.16%

Babcock International Group (BAB) 1,517.00p 1.54%

Marks & Spencer Group (MKS) 370.90p 1.53%

Scottish Mortgage Inv Trust (SMT) 1,227.00p 1.40%

JD Sports Fashion (JD.) 85.72p 1.40%

DCC (CDI) (DCC) 4,640.00p 1.31%

Admiral Group (ADM) 2,692.00p 1.20%

Legal & General Group (LGEN) 263.70p 1.15%

Autotrader Group (AUTO) 555.00p 1.13%

Diageo (DGE) 1,626.00p 1.03%

FTSE 100 - Fallers

GSK (GSK) 1,812.50p -2.68%

Burberry Group (BRBY) 1,145.00p -2.14%

Airtel Africa (AAF) 353.20p -2.05%

AstraZeneca (AZN) 13,598.00p -2.03%

Smiths Group (SMIN) 2,576.00p -1.53%

Smurfit Westrock (DI) (SWR) 3,098.00p -1.43%

Croda International (CRDA) 2,742.00p -1.33%

Experian (EXPN) 2,748.00p -1.33%

Informa (INF) 881.40p -1.32%

HSBC Holdings (HSBA) 1,262.00p -1.19%

FTSE 250 - Risers

Playtech (PTEC) 320.00p 6.84%

Pets at Home Group (PETS) 213.40p 6.49%

Pan African Resources (PAF) 145.40p 5.06%

Bluefield Solar Income Fund Limited (BSIF) 71.90p 4.66%

Harbour Energy (HBR) 221.80p 3.16%

Endeavour Mining (EDV) 4,478.00p 3.08%

The Renewables Infrastructure Group Limited (TRIG) 69.50p 2.81%

Greencoat UK Wind (UKW) 99.65p 2.73%

Pagegroup (PAGE) 203.40p 2.52%

Utilico Emerging Markets Ltd (DI) (UEM) 289.00p 2.12%

FTSE 250 - Fallers

Energean (ENOG) 851.50p -2.85%

OSB Group (OSB) 607.00p -2.10%

SSP Group (SSPG) 181.00p -1.95%

Caledonia Investments (CLDN) 369.00p -1.86%

Pantheon Infrastructure (PINT) 111.50p -1.76%

Oxford Nanopore Technologies (ONT) 168.40p -1.64%

Paragon Banking Group (PAG) 866.00p -1.59%

Watches of Switzerland Group (WOSG) 521.50p -1.51%

Ocado Group (OCDO) 241.40p -1.39%

RHI Magnesita N.V. (DI) (RHIM) 2,845.00p -1.39%