Thursday Morning Markets: FTSE 100 Down as Fed Weighs on London

The FTSE 100 is nursing a 1% loss so far this morning, after a hawkish message from the Federal Reserve and the latest UK unemployment data.

The FTSE 250 is trading around 0.4% lower, while on the continent, the DAX is down 0.2%, and the CAC 40 and Stoxx 50 have both lost 0.1%.

The Fed held rates at 3.5%–3.75% as expected, but stripped out its easing bias and indicated that a hike is possible. New Chair Kevin Warsh then announced a policy review.

WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.

Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.

5.0

Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Meanwhile, UK jobs data was released today. The unemployment rate nudged lower to 4.9% from 5%.

The data comes ahead of the Bank of England’s rate decision at midday. A hold is all but certain, but traders will be watching the vote split and statement tone closely.

What’s Moving

Informa is the morning’s standout, up +2.59% after a trading update showed 6.4% underlying revenue growth in the five months to 31 May, with full-year guidance left intact.

Melrose (+2.91%) is outperforming on industrial and aerospace sector tailwinds, while Polar Capital Tech (+2.24%) is catching a mild tech bid in an otherwise cautious session.

On the flip side, Persimmon is the session’s biggest casualty, down -6.08%.

Land Securities (LAND, -4.13%) is also being squeezed. 3i Group (-3.86%) goes ex-dividend today, explaining much of the mechanical drop.

Updates

Elsewhere, today, Tesco’s Q1 update flagged a 3.2% like-for-like sales decline at its Booker wholesale arm .

Whitbread told a mixed story, with Premier Inn hotels in the UK and Germany rising, but food and drink revenues fell in the UK. Shares dropped despite the hotel strength.