(Sharecast News) - London stocks were still in the red by midday on Thursday as market participants continued to mull the US Treasury's buyback plan, with JD Sports under the cosh after a guidance downgrade.
The FTSE 100 was off 0.3% at 10,715.54.
The Treasury said in a statement on Wednesday that it was increasing "by at least double" the size of liquidity support buyback operations for bonds maturing in the 10- to 20-year and the 20- to 30-year ranges. The current maximum size of $2bn per operation will be at least $4bn per operation.
Dan Coatsworth, head of markets at AJ Bell, said: "Based on average salaries, it would take a US worker more than 615 million years to earn the equivalent of America's $40 trillion national debt, which itself has doubled in a decade. That debt figure is merely the principal: the interest bill alone now runs to around $1 trillion a year.
"This week's intervention by the US Treasury to bring down yields on long-term US government bonds may have had the desired effect in the short term. However, the US national debt reaching such eye-watering levels will concentrate minds on deficit risks in the world's largest economy.
"It's particularly important given the ongoing ructions in the Middle East as Donald Trump took to Truth Social to threaten economic D-Day against Iran and action against any party which provides it with help or support.
"Brent crude oil prices continued to tick higher, moving close to $93 per barrel, as the prospect of a lasting agreement between Washington and Tehran feels as remote as ever.
"The moves in the US Treasury market helped support gains across Asia and saw a steady start in Europe, with gold consolidating yesterday's gains to trade within touching distance of the $4,500 per ounce mark.
"In London, there was profit taking in the mining sector after yesterday's gains, with a number of the stodgier, defensive names on the FTSE 100 in demand with investors."
On home shores, the latest Consumer Sentiment Monitor from the British Retail Consortium showed that consumer confidence improved in August, with expectations for the economy, personal finances and retail spending all strengthening over the month.
The BRC-Opinium survey showed expectations for the state of the economy over the next three months rising to a net balance of -28 from -36 in July, while expectations for personal finances improved to -9 from -12.
Retail spending expectations climbed more sharply, with the net balance rising to +8 from +1, while overall spending expectations edged up to +15 from +13. Expectations for saving slipped to -5 from -4.
"Consumer sentiment continued to rise with confidence in the economy hitting its highest level since the historical lows reached at the start of the Iran conflict. Expectations for personal finances saw a small improvement, driven by an optimistic Gen Z," said Helen Dickinson, the BRC's chief executive.
"The Burnham administration is enjoying a honeymoon boost driven by less pessimism about the outlook, but maintaining that momentum will depend on whether the Government can ease the pressure on household budgets."
Dickinson said that the upcoming Autumn Budget in late-October will be the "acid test of this government's real commitment to growth", calling on the government to reduce retail business costs, from energy bills to business rates.
"A Budget that backs retail and reduces costs is a pro-consumer Budget," she said.
In equity markets, JD Sports Fashion tumbled as it cut its FY27 profit guidance following weaker trading in the second quarter.
Hays slumped after the recruiter said it swung to a full-year pre-tax loss due to restructuring charges, although there was an improvement in underlying profit.
Standard Life was steady as it announced the launch of a UK pension risk transfer partnership with a consortium of firms, including Goldman Sachs, with a combined initial capital commitment of up to £2bn.
Legal & General, Imperial Brands, Centrica and Anglo American all fell as they traded without entitlement to the dividend.
Market Movers
FTSE 100 (UKX) 10,715.54 -0.26%
FTSE 250 (MCX) 24,570.60 -0.30%
techMARK (TASX) 6,151.72 -0.11%
FTSE 100 - Risers
Weir (WEIR) 2,706.00p 2.42%
Diageo (DGE) 1,715.00p 1.63%
Severn Trent (SVT) 3,104.00p 1.30%
BP (BP.) 545.10p 1.15%
Experian (EXPN) 2,947.00p 1.03%
Diploma (DPLM) 7,175.00p 0.99%
Games Workshop Group (GAW) 18,830.00p 0.91%
Babcock International Group (BAB) 1,143.50p 0.84%
United Utilities Group (UU.) 1,420.00p 0.78%
Land Securities Group (LAND) 684.00p 0.66%
FTSE 100 - Fallers
JD Sports Fashion (JD.) 80.04p -13.97%
Investec (INVP) 633.50p -4.59%
Legal & General Group (LGEN) 286.90p -3.59%
Coca-Cola HBC AG (CDI) (CCH) 4,396.00p -2.52%
Marks & Spencer Group (MKS) 376.10p -2.13%
Convatec Group (CTEC) 227.60p -1.90%
Antofagasta (ANTO) 3,622.00p -1.86%
Prudential (PRU) 1,003.50p -1.81%
Anglo American (AAL) 3,940.00p -1.62%
Aviva (AV.) 707.80p -1.53%
FTSE 250 - Risers
Oxford Nanopore Technologies (ONT) 151.50p 9.23%
Ithaca Energy (ITH) 268.00p 3.88%
Hochschild Mining (HOC) 570.00p 2.98%
Pan African Resources (PAF) 121.90p 2.87%
Michael Page (PAGE) 217.60p 2.83%
Syncona Limited NPV (SYNC) 109.00p 2.83%
Helios Towers (HTWS) 206.60p 2.79%
Kainos Group (KNOS) 1,234.00p 2.47%
AEP Plantations (AEP) 195.60p 2.19%
Energean (ENOG) 771.00p 2.12%
FTSE 250 - Fallers
Trainline (TRN) 188.00p -10.06%
Hays (HAS) 66.75p -5.67%
Aston Martin Lagonda Global Holdings (AML) 34.30p -4.88%
Dr. Martens (DOCS) 82.10p -4.09%
Plus500 Ltd (DI) (PLUS) 3,652.00p -3.13%
XPS Pensions Group (XPS) 321.00p -2.87%
SDCL Efficiency Income Trust (SEIT) 35.70p -2.46%
Currys (CURY) 152.50p -2.30%
Bridgepoint Group (Reg S) (BPT) 324.60p -1.93%
Rightmove (RMV) 503.60p -1.76%
49.98 (0.47%)
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