Become a Member
  • Track your favourite stocks
  • Create & monitor portfolios
  • Daily portfolio value
Sign Up
Quickpicks
Add shares to your
quickpicks to
display them here!

LONDON BRIEFING: Stocks down after US Fed holds interest rates steady

19th Jun 2025 07:48

(Alliance News) - The FTSE 100 was called to open lower on Thursday, ahead of the Bank of England's interest rate decision at midday London time.

"The Bank of England is expected to keep rates unchanged today, but debate is likely to be heated both within the MPC and outside it," Swissquote's Ipek Ozkardeskaya commented. "While yesterday's data showed inflation cooling more slowly, the dovish chorus remains loud, still questioning the reliability of ONS data and worried that the budget might be doing more harm than good to the UK economy.

"Markets now expect the BoE to stand pat this month, but signal a cut in August."

Here is what you need to know at the London market open:

----------

MARKETS

----------

FTSE 100: called down 8.1 points, 0.1%, at 8,835.37

----------

Hang Seng: down 1.9% at 23,252.14

Nikkei 225: down 0.9% at 38,531.01

S&P/ASX 200: marginally down at 8,530.50

----------

DJIA: closed down 41.44 points, 0.1%, at 42,171.66

S&P 500: closed down 1.85 points at 5,980.87

Nasdaq Composite: closed up 0.1% at 19,546.27

----------

US 10-year Treasury yield: 4.40% (4.36%)

US 30-year Treasury yield: 4.89% (4.86%)

----------

EUR: lower at USD1.1452 (USD1.1526)

GBP: lower at USD1.3388 (USD1.3472)

USD: higher at JPY145.22 (JPY144.65)

GOLD: lower at USD3,354.35 per ounce (USD3,387.84)

OIL (Brent): higher at USD76.76 a barrel (USD75.06)

(changes since previous London equities close)

----------

ECONOMICS

----------

Thursday's key economic events still to come:

09:30 BST Switzerland interest rate decision

10:00 BST eurozone construction output

12:00 BST UK interest rate decision

US Juneteenth National Independence Day. Financial markets closed.

----------

The UK Foreign secretary is set to meet his US counterpart in Washington after Donald Trump said he was mulling whether to join Israeli strikes against Iran. David Lammy and US Secretary of State Marco Rubio will discuss the Middle East as potential American involvement in the conflict looms. It comes after UK Prime Minister Keir Starmer convened a Cobra meeting of senior ministers on Wednesday to give updates on ongoing diplomatic efforts and UK support for British nationals in the region. The high-level meeting came on the heels of his return from the G7 summit in Canada, at which he and other world leaders reiterated their "commitment to peace and stability". But the US president, who left the summit a day early, told reporters outside the White House he was considering strikes on Iran's nuclear facilities. He said: "I may do it. I may not do it. I mean, nobody knows what I'm going to do."

----------

UK consumer sentiment improved in June to its highest level since December, but remained firmly in negative territory, survey data from the British Retail Consortium showed. According to the BRC-Opinium consumer sentiment monitor, expectations for the state of the UK economy over the next three months improved to a net score of negative 28, up from negative 36 in May. Consumers' expectations for their personal finance situations also improved to negative 5 from negative 12. "Gen Z saw the biggest improvement, in both economic outlook and their expectations of their future finances, with younger generations remaining the most optimistic about the future," said BRC Chief Executive Helen Dickinson. "This rising optimism may also reflect the increase in minimum wage from April, with many younger people expected to have seen a significant uplift in their pay packet. Expectations of future spending – both in retail and more generally – rose slightly, with more spending on groceries planned over the coming months." Consumer expectations of their overall personal spending rose to positive 12 in June from positive 10, while expectations for their spending on retail were up to positive two from zero. Expectations for consumers' personal saving improved slightly to negative four from negative five a month ago. The BRC said it welcomed promises in the chancellor's spending review on skills, police and transport spending.

----------

The Federal Reserve left interest rates unchanged amid expectations of higher inflation and lower economic growth, but still pointed to two reductions later this year. In a unanimous vote, the Federal Open Market Committee voted to maintain the target range for the federal funds rate at 4.25-4.50%, the fourth consecutive hold. In a statement, the FOMC said: "Uncertainty about the economic outlook has diminished but remains elevated." Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a "solid pace," it added. The unemployment rate remains low, labour market conditions remain solid while inflation remains somewhat elevated, the FOMC added. In the accompanying summary of economic projections, Fed officials predicted two more 25 basis points rate cut in 2025, unchanged from March. Eight FOMC officials predicted rate two cuts in 2025, seven see no cuts, two one cut and two predict three reductions. In 2026 and 2027, FOMC officials expect one further cut, toning down its projections in March for two reductions in each year. The FOMC cut its forecast for economic growth in 2025 to 1.4% from 1.7% in March, and for 2026 to 1.6% from 1.8%. For 2027, the gross domestic product estimate is unchanged at 1.8%. Core personal consumption expenditures inflation, the Fed's preferred inflation measure, is now seen at 3.1% in 2025, up from 2.8% in March, before it decelerates to 2.4% in 2026 and 2.1% in 2027, still above the Fed's 2% target.

----------

With numerous conflicts and crisis brewing worldwide, the fallout for the tourist industry has been harsher for China than it has been for the US - even after US President Donald Trump took over. But that might not last for long, as travel industry experts agree that Trump's second term - with its harsh anti-foreigner rhetoric and immigration crack down - will harm US tourism. According to estimates by the London-based World Travel & Tourism Council and the consultancy Oxford Economics, the US is expected to lose over USD12 billion in revenue this year due to foreign visitors staying away. However, that hasn't shown up so far. Germany's two major airports, Frankfurt and Munich, reported an increase in passenger numbers on US routes post-Trump election, while traffic to and from China has declined.

----------

France is considering stopping Britain-bound migrant boats in its shallow coastal waters, but the move raises both safety and legal issues. France has long been a launchpad for people hoping to cross the Channel and start a better life in Britain. France and Britain have long vowed to crack down on people smugglers who organise the journeys. But until now, French authorities have only intervened on land to prevent boats from leaving. But once the vessels are at sea, French authorities have, under international maritime law, so far only intervened if someone's life was in danger. But as more small boats land on English shores, and the UK government comes under mounting pressure from the far right to tackle irregular migration, London has pressed Paris to do more. The French interior ministry on Wednesday told AFP it wanted its rules to "evolve" so its law enforcement officers could "intervene in shallow waters and stop 'taxi boats' up to 300 metres from the coast".

----------

BROKER RATING CHANGES

----------

Bank of America initiates Rathbones with 'buy' - target 2,250 pence

----------

Berenberg starts Stelrad with 'buy' - price target 200 pence

----------

Berenberg starts M&C Saatchi with 'buy' - price target 240 pence

----------

COMPANIES - FTSE 100

----------

Whitbread released its results for the first quarter ended May 29. It said Premier Inn UK sales totalled GBP648.2 million, down 5% from GBP685.2 million the year before. Premier Inn Germany sales rose 16% to GBP74.2 million from GBP63.1 million. Total sales, however, declined 4% on-year. Whitbread said it continues to outperform in the UK and Germany, and that its five-year plan is on track to deliver incremental profit of at least GBP300 million by financial 2030. Also, it said it is trading strongly in Germany and remains on course to deliver a profit for the full year.

----------

COMPANIES - FTSE 250

----------

Fidelity European Trust and Henderson European Trust have agreed heads of terms in respect of a proposed combination, pursuant to a scheme of reconstruction of Henderson European. The enlarged Fidelity European, the trust said, will have "anticipated net assets of over GBP2.1 billion [and] is expected to benefit from enhanced marketability and profile as the flagship UK closed-ended vehicle for investment in Europe". It added that "the scale of the combined entity, as the UK's largest and most liquid European-focused investment trust, is also expected to further enhance secondary market liquidity for the company's shareholders". Fidelity European expects the scheme to become effective by the end of September.

----------

Frasers Group has withdrawn from Revolution Beauty's formal sales process and does not intend to make an offer for the latter. Last week, Revolution Beauty had announced it received takeover proposals from "a number of parties". Frasers has a 29% stake in fast fashion retailer boohoo Group, which trades as Debenhams and which in turn has a 27% stake in Revolution, making it Revolution's largest shareholder. boohoo has been at odds with both Frasers and Revolution over the past two years.

----------

Syncona released its annual results. For the year ended March 31, the net asset value total return was negative 9.5%, with the NAV per share decreasing to 170.9 pence at March 31 from 188.7p one year prior. The London-based investor in healthcare companies said it continues to navigate "sustained challenging market conditions", and that it is proposing a change of investment objective to move to an orderly realisation of its assets, "balancing returning cash to shareholders in timely manner with maximising value". It intends to adopt a new capital allocation policy to support its existing portfolio companies. Also, Syncona said it is exploring opportunities for investors to roll interests into a new private vehicle.

----------

OTHER COMPANIES

----------

Cordiant Digital Infrastructure released its annual results for the period ended March 31. Its NAV per share was 129.6p at the year end, up from 120.1p one year prior. The total return for the year was 11.6%, exceeding its annual target of positive 9%. Cordiant declared a second interim dividend of 2.25p, up on-year from 2.20p. It said its target dividend for the year has increased to 4.35p from 4.2p. Looking ahead, Cordiant said it views the current financial year "with confidence", stating: "The company and its portfolio companies are well placed to benefit from the continuing demand for Digital Infrastructure, evidenced by major contract wins and renewals with blue chip and government customers during the year."

----------

By Emma Curzon, Alliance News reporter

Comments and questions to [email protected]

Copyright 2025 Alliance News Ltd. All Rights Reserved.


Related Shares:

RathboneM&C SaatchiStelrad GrpWhitbreadCordiant Digit.Fidelity European ValuesHend.eur.trustSynconaFrasers GroupRevolution BeautyBoohoo
FTSE 100 Latest
Value8,955.45
Change-20.21