28th Aug 2025 12:02
(Alliance News) - Stock prices in London were mostly lower at midday on Thursday, ahead of multiple US releases, including jobless claims, GDP and flash quarterly personal consumption expenditures.
"Later on, a second estimate of US GDP for the second quarter and jobless claims data will be in focus as investors try to guess what the Federal Reserve will do at its next summit in mid-September – amid all the noise around the Trump administration's interventions," commented AJ Bell's Russ Mould. "While Fed Chair Jerome Powell seemed to hint a cut was in the offing at Jackson Hole recently, there is ongoing debate about the potential scale of any cut."
Mould added that Nvidia, down 2.0% pre-market, "may have taken a bit of a tumble as its earnings proved mixed but that didn't damage investor sentiment too much on a broader scale".
The FTSE 100 index was down 47.13 points, 0.5%, at 9,208.37. The FTSE 250 was down 111.58 points, 0.5%, at 21,693.45, and the AIM All-Share was down 0.67 points, 0.1%, at 761.70.
The Cboe UK 100 was down 0.5% at 923.93, the Cboe UK 250 was down 0.5% at 19,023.19, and the Cboe Small Companies was up 0.2% at 17,246.16.
Drax was down 10% on the FTSE 250, after reporting that the Financial Conduct Authority has commenced an investigation relating to its sourcing for biomass pellets.
"Notably the investigation covers several years' worth of accounts and follows accusations from one of its former top lobbyists earlier this year at an employment tribunal that it had misled regulators, the government and the public," Mould said. "There will be concern about any sanction levied by the FCA but also what it might mean for the subsidies the company continues to receive from the government.
"The share price reaction shows the market is concerned about the impact this could have on the business and, while the company is important to the UK's energy security, that doesn't mean it can escape scrutiny on its sustainability credentials."
On AIM, Cambridge Cognition jumped 21%.
Alongside executive changes, the company reported a revenue decrease on-year to GBP4.3 million for the first half of 2025, but new sales orders more than doubled to GBP6.9 million. Its pretax loss narrowed to GBP1.0 million.
Looking ahead, Cambridge Cognition expects total revenue between GBP9.5 million and GBP10.0 million for 2025. Furthermore, it noted interest from investors to subscribe for 4.1 million new shares at 27.25p, which would raise GBP1.1 million.
Arrow Exploration lost 14%.
The Calgary, Canada-based firm, which holds Colombian oil assets, swung to a second-quarter net loss of USD934,735 from the prior year's net income of USD1.2 million. However, average production rose 48% on-year to 3,768 barrels of oil equivalent per day.
Arrow said it is currently producing approximately 4,200 boe/d, and expects production to start on two more wells in the next two weeks.
On the FTSE 100, Mould said: "A modest recovery in the dollar, despite the ongoing concern about the independence of the [US] Federal Reserve, was good news for big US earners like JD Sports and Diageo. Miners also did some of the heavy lifting for the UK index early on."
Accordingly, at around midday the three top FTSE 100 stocks were JD Sports Fashion, up 3.0%; Anglo American, up 2.0%; and Diageo, up 1.7%.
The pound was quoted at USD1.3518 at midday on Thursday in London, higher compared to USD1.3469 at the equities close on Wednesday. The euro stood at USD1.1664, higher against USD1.1606. Against the yen, the dollar was trading lower at JPY147.02 compared to JPY147.73.
In European equities on Thursday, the CAC 40 in Paris was up 0.2%, while the DAX 40 in Frankfurt was down 0.1%.
The main French far-right party on Thursday rejected a compromise with Prime Minister Francois Bayrou over the budget, saying it was "too late" to make a deal.
Bayrou has staked his survival on a confidence vote he has called for September 8 after months of deadlock over the budget, which the government wants to slash spending. But with the far right and left-wing parties pledging not to back him, analysts say his premiership is likely to be doomed, only months after he took office in December.
Nonetheless, Rostro's Joshua Mahony commented: "Investors seem willing to discount the near-term noise, with a focus instead on solid corporate earnings and easing bond yields across the region...For now, Europe is leaning into resilience rather than fear, though politics could easily reassert themselves in the weeks ahead."
Stocks in New York were called mixed. The Dow Jones Industrial Average was called up 0.2%, the S&P 500 index up 2.25 points, and the Nasdaq Composite down 9.25 points.
The yield on the US 10-year Treasury was quoted at 4.23%, narrowing from 4.26%. The yield on the US 30-year Treasury was quoted unchanged at 4.91%.
"Attention now shifts to the US economy, with weekly jobless claims and the latest GDP revision due later today," Mahony commented. "Claims will offer the most timely read on the labour market...Meanwhile, the GDP revision may sharpen the picture of US growth momentum. Taken together, these releases will help frame expectations ahead of next week's payrolls report.
"With equities already jittery after Nvidia's stumble, the data has the potential to either soothe nerves or amplify volatility into the close."
Brent oil was quoted lower at USD67.08 a barrel at midday in London on Thursday from USD67.55 late Wednesday.
"Crude oil slipped after a brief rebound, as...the US summer driving season winds down and gasoline demand could moderate, adding near-term pressure on energy markets," commented Kudotrade's Konstantinos Chrysikos. "Supply dynamics are also weighing on crude prices. OPEC+ output continues to rise, with further increases expected in September, while non-OPEC producers add to global flows."
Gold was quoted higher at USD3,398.35 an ounce against USD3,387.91.
Still to come on Thursday's economic calendar, other US releases include pending home sales, comments from Federal Reserve Governor Christopher Waller, and Kansas City Fed manufacturing activity data.
By Emma Curzon, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
JD SportsDiageoAnglo AmericanDraxArrow Explor.Cambridge Cog