27th Aug 2025 11:58
(Alliance News) - Stock prices in London were mostly lower at midday on Wednesday, ahead of the US flash personal consumption expenditure and GDP readings, both due on Thursday.
"The [PCE] data will help clarify whether expectations of policy easing are justified," Exness' Krisada Yoonaisil noted. "Softer figures could reinforce dovish bets, pressuring both the dollar and yields."
The FTSE 100 index was down 0.93 points at 9,264.87. The FTSE 250 was down 27.80 points, 0.1%, at 21,833.43, and the AIM All-Share was down 2.16 points, 0.3%, at 762.95.
The Cboe UK 100 was up 0.2% at 929.35, the Cboe UK 250 was down 0.2% at 19,173.66, and the Cboe Small Companies was down 0.2% at 17,278.85.
JD Sports Fashion continued to lead the FTSE 100, up 2.3% after its trading update and announcement of a new GBP100 million buyback.
"A small improvement in North America and Asia Pacific like-for-like sales on a quarterly basis suggests JD Sports is still match-fit," commented AJ Bell's Russ Mould. However, deterioration in the UK and Europe means its performance is still considerably short of the athletic prowess portrayed in its product marketing.
"The figures are good enough to lift JD out of the danger zone, helped by saying full-year profit will hit market forecasts."
However, Mould warned that between the potential impact of US tariffs and the firm's "cautious tone": "It's clear that JD is walking a tightrope and it wouldn't take much to knock it off course."
NatWest led the laggers, down 2.4%. Barclays, meanwhile, was down 1.2%, while Standard Chartered lost 1.1%.
Hochschild Mining remained the biggest FTSE 250 faller, down 17% by around midday.
The miner's first-half pretax profit after exceptional items more than doubled on-year to USD140.1 million, as revenue rose 33% to USD520.0 million. Hochschild declared an interim dividend of 1.0 US cent per share, up from no payout the year before. Also, attributable production rose to 161,597 gold equivalent ounces, or 13.4 million silver equivalent ounces, from 152,792 gold or 12.7 million silver equivalent ounces.
Looking ahead, however, Hochschild lowered its 2025 group production guidance to between 291,000 and 319,000 gold equivalent ounces from between 350,000 and 378,000 ounces. This reflects a lower production forecast for the Mara Rosa mine, due to an operational review and temporary suspension of the processing plant.
Fiinu led AIM, surging up 34%.
The Weybridge, England-based financial technology company has resumed trading on AIM, having completed its reverse takeover of Everfex. It said it remains focused on its Plugin Overdraft product, and seeks to provide a banking as a service platform.
Sorted Group, meanwhile, lost 7.0%.
The Manchester-based delivery platform operator announced the upcoming departure of Chief Financial Officer Mahmoud Wariah, who will remain until the end of his six-month notice period.
Also, the company proposes a share capital reorganisation to create a lower nominal value, with existing ordinary shares subdivided into new ordinary shares and deferred shares.
In European equities on Wednesday, the CAC 40 in Paris was up 0.4%, while the DAX 40 in Frankfurt was down 0.1%.
The pound was quoted lower at USD1.3435 at midday on Wednesday in London, compared to USD1.3483 at the equities close on Tuesday. The euro stood lower at USD1.1585, against USD1.1656. Against the yen, the dollar was trading higher at JPY148.07 compared to JPY147.37.
Stocks in New York were called slightly higher. The Dow Jones Industrial Average was called up 19.00 points, the S&P 500 index up 1.75 points, and the Nasdaq Composite up 1.50 points.
The yield on the US 10-year Treasury was quoted at 4.27%, narrowing from 4.28%. The yield on the US 30-year Treasury was quoted flat at 4.93%.
"With GDP and core PCE inflation data due in the coming days, treasury yields remain stubbornly high, with the 10-year remaining above the 4.2% mark," commented Rostro's Joshua Mahony. "Trump has continued to pressure the Fed in a bid to shape monetary policy, although Lisa Cook won't go down without a fight."
On the concerns surrounding the Fed's independence, AJ Bell's Mould said: "Efforts by a political leader to influence central bank policy...are a mighty surprise in America, the world's largest economy and home to its largest stock and bond markets.
"For now, American share prices seem to be taking all of this in their stride, but currency and bond markets seem to be less impressed, even if they are not quite taking the outright evasive action that investors would usually take when confronted with such behaviour in an emerging arena."
Meanwhile Nvidia's earnings report, due after the US market close, was described by Mahony as the day's "main event".
"This time around there will be plenty of focus on both the backwards looking data, but also a significant focus on how the company sees the second half of 2025," the analyst said. "While Trump has allowed the export of H20 chips...the Chinese government have ensured that companies look elsewhere.
"As such, a significant focus will be on how Nvidia plans to overcome this hurdle by developing a new chip for the Chinese market."
Nvidia was up 0.7% pre-market in New York, having closed up 1.1% on Tuesday.
Brent oil was quoted lower at USD66.56 a barrel at midday in London on Wednesday from USD67.46 late Tuesday.
Gold was quoted lower at USD3,376.52 an ounce against USD3,382.89.
Still to come on Wednesday's economic calendar are US EIA crude oil stocks.
By Emma Curzon, Alliance News reporter
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