FTSE 100 Live Friday
- Federal Reserve speech in focus
- Revolution Beauty founders return
- Consumer confidence picks up
Market update: FTSE 100 steady ahead of Powell speech, Standard Chartered up 3%
09:54 , Graeme EvansA fourth consecutive record by the FTSE 100 index today hinged on the tone of a potentially market-moving speech by Federal Reserve chair Jerome Powell.
Powell’s address to the Jackson Hole economic symposium, which takes place 90 minutes before London’s closing bell, is likely to provide clues on the central bank’s approach to setting monetary policy over the rest of the year.
In particular, traders will be looking to see whether Powell places more emphasis on weaker payrolls or highlights the upside risks to inflation from higher tariffs.
UBS Global Wealth Management notes that Fed chairs have used the symposium in the past to announce changes to the monetary policy outlook.
This time last year, Powell said the “time has come for policy to adjust,” opening the door to the start of the current easing cycle.
UBS said: “Investors may now hope Powell will give a similarly definite cue, with futures indicating an over 80% chance of a Fed cut next month.”
It added: “Our view is that recent data has strengthened the case for imminent easing from the Fed, and we expect the federal funds rate to be 100 basis points lower over the next six months.”
The speech meant London traders opted to stay on the sidelines in morning dealings, leaving the FTSE 100 index 4.61 points lower at 9304.59.
The defensive nature of London’s top flight last night helped it rise another 0.2% to post a third successive record close at 9309.20.
This week’s performance has been in contrast with losses on Wall Street, where the S&P 500 index last night closed lower for the fifth session in a row.
Today’s best performing stock in the FTSE 100 was Standard Chartered, which rose 3% or 44.5p to 1404.5p after it said it was “pleased and unsurprised” by the US Department of Justice’s favourable ruling in a civil litigation case.
Airtel Africa also rose 3% or 7p to 221.2p, extending gains for this year to more than 85%.
On the fallers board, Tesco and British American Tobacco both lost 1% - down 4.3p to 427.2p and 42p to 4351p respectively. Prudential dipped 9p to 998p ahead of Tuesday’s half-year results.
The FTSE 250 index rose 25.28 points to 21,843.12. WH Smith struggled to rebound following yesterday’s 42% reverse, adding 2% or 14.5p to 654.5p.
Revolution Beauty ends sale process, co-founders return
08:53 , Graeme EvansRevolution Beauty co-founders Adam Minto and Tom Allsworth have returned to the AIM-listed business after it failed to secure a suitable buyer.
Revolution, which sells make-up and cosmetics online and through concessions, also announced plans on Friday to raise about £15 million by issuing new shares.
Revolution said it had not received any suitable offers since launching a sale process earlier this year, and it was therefore no longer looking for a buyer.
Frasers Group, which is majority owned by Mike Ashley, had explored a possible bid.
Allsworth will return as the company’s chief executive, while Minto is taking on a consultancy role.
The co-founders intend to “reset” the business and will be carrying out a “new and refreshed strategy with a view to returning it to long-term profitability”, it told investors.
FTSE 100 dips after record, WH Smith shares up 3%
08:20 , Graeme EvansThe FTSE 100 index has fallen back after last night’s third consecutive record high, easing 0.2% or 17.91 points to 9291.29.
Fallers include heavyweight AstraZeneca, which declined 40p to 12,008p, and accounting software business Sage following a dip of 11.9p to 1090.6p.
Asia-focused banking group Standard Chartered posted the best performance, rising 3% or 43p to 1403p.
In the FTSE 250, WH Smith shares followed yesterday’s 42% slide with a rise of 3% or 18p to 658p
Rate cut bets under pressure ahead of Powell speech
07:25 , Graeme EvansThe S&P 500 index last night closed lower for the fifth session in a row, the first time it has done so since January.
The latest fall of 0.4% followed the release of robust PMI activity figures, which prompted markets to lower the probability of a September rate cut to 72%.
The paring back of rate cut expectations also reflected nerves ahead of today’s Jackson Hole speech by Federal Reserve chair Jerome Powell, which takes place at 3pm UK time.
Deutsche Bank said: “The last time we heard Powell speak in July, the chair was notably hawkish on the labour market, but in light of the July downward payroll revision, we expect a somewhat different tone today.
“Investors will be keenly watching whether Powell places more emphasis on weaker payrolls versus more stable measures of labour market slack and still solid activity and inflation data.”
Chris Weston, Pepperstone head of research, said Powell’s speech will be critical for pricing risk into the September, and even October and December’s Federal Reserve meetings.
He said: “Much ink has been spilled on what Powell may say, how he guides market expectations, and whether he skews the Fed’s reaction function towards the labour market and growth focus of the dual mandate or maintains a heavier weighting on inflation.”
Weston added: “One thing seems assured: unless Powell explicitly calls for a September cut – a very low probability – Trump will be quick to take to Truth Social to make his feelings known.”
Consumer confidence at high for 2025 - GfK
07:08 , Graeme EvansGfK’s consumer confidence index has increased by two points to minus 17, driven by an improvement in personal finances following a cut to interest rates.
The measure for the general economic situation during the last 12 months is up two points to minus 42 – seven points worse than a year ago – while the expectations for the next 12 months fell one point to minus 30 – 15 points worse than last August.
Neil Bellamy, consumer insights director at GfK, said: “While August’s overall index score of minus 17 is the best this year, consumer confidence continues to move in a very narrow band, and there’s no sense that it is about to break out into fresher, more optimistic territory.”
FTSE 100 set to stay in record territory, US stocks fall
07:00 , Graeme EvansA third successive record high for the FTSE 100 index last night contrasted with another weaker session on Wall Street.
The Dow Jones Industrial Average closed 0.3% lower, with Walmart down 4% despite lifting full-year guidance in second quarter results.
Jitters ahead of today’s Jackson Hole speech by Federal Reserve chair Jerome Powell meant the S&P 500 fell another 0.4%, the first time since January that the benchmark has declined for five sessions in a row.
The defensive nature of the FTSE 100 index helped London’s top flight add 21.06 points or 0.2% to post a fresh record close of 9309.20.
Futures trading points to a steady start at today’s opening bell.
