London stocks edged lower in early trading on Wednesday as caution grew ahead of interest rate announcements from the US Federal Reserve and the Bank of England. microsoft and alphabet I was not impressed.
At 0830 GMT, the FTSE 100 was down 0.2% at 7,650.35.
Jim Reid, Head of Global Economics and Thematic Research deutsche bank“The major events of the past 24 hours occurred after the US closing bell, as last night’s Microsoft and Alphabet results soured risk sentiment.
“Both tech giants narrowly beat revenue and profit expectations but were lukewarm in after-hours trading. Alphabet fell more than 5% as Google’s ad revenue fell short of expectations. Microsoft initially %,” perhaps indicating some degree of overshoot in the recent strong rally, but this decline was largely reversed after the outlook was released later in the evening. ”
Investors are keeping an eye on the Fed’s latest policy announcement, expected after European markets close, with the central bank expected to announce its decision on Thursday.
They were also considering the following numbers: Nationwide According to previously released data, UK house prices rose more than expected in January despite a downward trend in mortgage rates.
House prices rose 0.7% month-on-month, flat in December, but rose against expectations for a 0.1% rise. The average price of a house is currently £257,656.
For the year, prices fell by just 0.2% in January, following a 1.8% decline in the previous month. This was the strongest performance since January 2023.
Robert Gardner, Chief Economist at Nationwide, said: “There have been some encouraging signs for potential buyers recently as mortgage rates continue to trend lower. Investors are becoming more optimistic about the outlook for bank rates, as investors’ views on this issue have changed.” The UK government will likely cut interest rates in the coming years.
“These changes are important because they led to a decline in long-term interest rates (swap rates), the basis for mortgage pricing, around the start of the year. The data warn that the interest rate outlook remains highly uncertain.
“Although it seems unlikely that there will be a rapid recovery in economic activity or house prices in 2024, the outlook is looking a bit more positive. However, there are signs of a temporary increase in the number of new buyer inquiries, suggesting that the number of properties coming onto the market. ”
Andrew Wishart, Senior Economist capital economicsThe faster-than-expected monthly increase in house prices reflects improving public sentiment about the economy and the housing market, confirming the CE’s higher-than-consensus forecast for house prices to rise 3% this year. He said that.
“While the cost of a mortgage to purchase the average home remains high by historical standards, the rise in house prices at the start of the year is due to a decline in mortgage rates that will push house prices further up,” he said. It shows that enough is enough.” He said. “According to YouGov, public sentiment on the outlook for house prices has improved and we are pleased with the above-consensus forecast for house prices to rise by 3% this year, reversing a 2.4% decline in 2023.”
In the stock market, vodafone French telecom companies fall Iliad The two companies announced that they had rejected an amended proposal to combine their Italian operations. The revised proposal would have given Vodafone 6.6 billion euros in cash and 2 billion euros in shareholder financing. Meanwhile, Ilias will receive 400 million euros in cash and 2 billion euros in financing.
GSK Despite raising its sales forecast for the next seven years, sales declined slightly.
professional IT service provider FDM group The company posted a loss after saying it expected flat-year revenue for the year, confirming a warning it issued in November about the hit from geopolitical uncertainty and customer postponement of project decisions. Ta.
market mover
FTSE100 (UK X) 7,650.35 -0.21%
FTSE250(MCX) 19,292.52 -0.29%
Techmark (TASX) 4,370.87 -0.14%
FTSE 100 – Riser
Croda International (CRDA) 4,720.00p 2.92%
Flutter Entertainment (DI) (FLTR) 16,310.00p 1.49%
Taylor Wimpey (TW.) 148.65p 0.78%
Pearson (PSON) 970.60p 0.71%
Antofagasta (ANTO) 1,717.50p 0.67%
Aviva (AV.) 434.50p 0.53%
Smith Group (SMIN) 1,650.50p 0.52%
Move right (RMV) 563.60p 0.50%
CRH (CDI) (CRH) 5,668.00 pence 0.50%
Compass Group (CPG) 2,191.00p 0.46%
FTSE 100 – Falls
Airtel Africa (AAF) 111.20p -2.71%
Vodafone Group (VOD) 67.10p -2.40%
Smurfit Kappa Group (CDI) (SKG) 2,952.00p -1.86%
Fresnillo (FRES) 529.40p -1.82%
Associated British Foods (ABF) 2,339.00 pence -1.76%
Lloyds Banking Group (LLOY) 42.42p -1.38%
Marks & Spencer Group (MKS) 251.20p -1.37%
Burberry Group (BRBY) 1,306.00p -1.36%
Standard Chartered (STAN) 595.00p -1.36%
Intermediate Capital Group (ICP) 1,754.50p -1.35%
FTSE 250 – Riser
Supermarket Income REIT (SUPR) 82.90p 2.85%
Genuit Group (GEN) 429.00p 2.51%
Virgin Money UK (VMUK) 158.75p 2.35%
Vesuvius (VSVS) 489.00p 2.34%
Ashmore Group (ASHM) 217.80p 2.25%
Trustpilot Group (TRST) 182.00p 2.19%
Elementis (ELM) 144.60p 1.97%
Indivia (INDV) 1,378.00 pence 1.47%
Urban Logistics REIT (SHED) 125.00p 0.97%
JP Morgan Indian Investment Trust (JII) 916.00p 0.88%
FTSE 250 – Falls
Harbor Energy (HBR) 281.00p -4.68%
Hochschild Mining (HOC) 101.30p -3.52%
Coats Group (COA) 71.70p -2.98%
Pets at Home Group (PETS) 285.00p -2.86%
Discovery Group (DSCV) 760.00p -2.81%
Jupiter Fund Management (JUP) 77.45p -2.39%
Spirent Communications (SPT) 119.60p -2.37%
Victrex plc (VCT) 1,330.00 pence -2.35%
Swiss Group (WOSG) watches 362.20p -2.21%
Britvic (BVIC) 867.00p -2.14%