The FTSE 100 ended little changed on Wednesday as upbeat US economic growth data was offset by a gloomier outlook for peace in the Middle East.
asserted
data → end → East
In London, the FTSE 100 index ended down slightly at 10,705.26.
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index → end → 10,705.26
The FTSE 250 fell 164.87 points, 0.7%, to 24,361.58, and the AIM all-share shed 2.40 points, 0.3%, at 793.44.
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share → fall → 793.44
In European equities on Wednesday, the CAC 40 in Paris fell 0.4%, while the DAX 40 in Frankfurt dipped 0.7%.
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DAX → fall → Frankfurt
Markets in London perked up mid-afternoon after a report showed US business activity growth accelerated for a fourth successive month in September to reach the fastest rate in more than five years.
But gains were short-lived as Iran’s President Masoud Pezeshkian stood firm in a defiant address to the United Nations.
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Pezeshkian → perk → Nations
S&P Global’s “flash” US composite PMI output index improved to 58.4 in September from 56.0 in August.
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index → improve → August
The reading, a 62-month high, beat the MNI-cited consensus of 55.3.
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reading → beat → 55.3
S&P Global noted that a further “surge” in service sector business activity was accompanied by a renewed improvement in manufacturing output growth.
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surge → note → growth
Chris Williamson, chief business economist at S&P Global Market Intelligence, said historical comparisons suggest that the latest survey data points to annualised growth of around 5% with a 4% gain now signalled for the third quarter as a whole.
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data → say → whole
“To put the growth surge in context, barring the spike in demand following the opening up of the economy after the Covid-19 lockdowns, the latest improvement in business activity is the greatest recorded since early 2015.
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improvement → put → 2015
Business is clearly booming now in both manufacturing and services,” he said.
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he → boom → manufacturing
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In the UK, private sector growth slowed in September, as subdued domestic economic conditions and geopolitical uncertainty weighed on businesses, while cost pressures intensified.
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pressures → read → businesses
The S&P Global flash UK purchasing managers’ composite output index fell to 51.7 points in September from 52.5 in August.
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index → fall → August
The flash services PMI business activity index also fell to 51.7 points from 52.5, below the FXStreet-cited consensus of 52.0.
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index → fall → 52.0
Despite the pullback, analysts at RBC Capital Markets said the report points to still robust activity.
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report → say → activity
The pound was quoted at 1.3254 US dollars on Wednesday, down from 1.3342 dollars at the same time on Tuesday.
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pound → quote → Tuesday
Against the euro, sterling ebbed to 1.1636 euros from 1.1662 euros.
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sterling → ebb → euros
The euro fell to 1.1391 dollars from 1.1440 dollars.
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euro → fall → dollars
Against the yen, the dollar was trading at 158.39 yen, up from 157.38 yen.
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dollar → trade → yen
He said Tehran would not allow the key shipping route, the Strait of Hormuz, to be used for aggression against his country.
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route → say → country
“We cannot let some have free access and bolster their interests from the waterway, while at the same time using that waterway to impose their aggression upon us,” he said.
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he → let → us
Striking a defiant tone, Mr Pezeskhian said the US “must know that the resistance of the Iranian people will only increase in the face of sanctions, increased pressure, increased bullying.
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resistance → strike → sanctions
We will never bow our head or bend at the knee”.
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We → bow → knee
The comments sent oil prices higher.
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comments → send → prices
Brent oil was quoted at 102.74 dollars a barrel in London on Wednesday at the time of the equity market close, up from 99.39 dollars late on Tuesday.
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oil → quote → Tuesday
The yield on the US 10-year Treasury was quoted at 5.08%, stretched from 4.96%.
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yield → quote → %
The yield on the US 30-year Treasury was quoted at 5.38%, widened from 5.30% the day before.
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yield → quote → %
On the FTSE 100, oil price strength lifted BP and Shell, up 2.8% and 2.0% respectively.
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strength → lift → BP
BP received a further boost as JPMorgan upgraded the oil major to “overweight” from “neutral”.
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JPMorgan → receive → neutral
Analyst Matthew Lofting noted BP’s recent history has been “chequered” with “operational inconsistencies, strategic inconsistencies and a balance sheet poison pill”.
But now, he thinks the FTSE 100 listing is on the “road to redemption”.
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listing → note → redemption
Leading the fallers was JD Sports Fashion, down 5.7%, giving back most of Tuesday’s gains.
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Fashion → lead → gains
The Bury, Manchester-based sports retailer said headwinds seen in the first half of the financial year are likely to persist as it reported lower sales, profit and margin.
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it → base → sales
Looking ahead, JD Sports left financial 2027 guidance unchanged from the reduced outlook outlined in August.
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Sports → look → August
The company continues to expect pretax profit before adjusting items of £700 million to £800 million and free cash flow of £460 million to £520 million.
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company → continue → million
“Maintaining profit and cash-flow guidance is a positive sign when a company is in a tricky position like JD, but investors only have so much patience.
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investors → maintain → patience
“They will want to see progress sooner rather than later.”
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They → want → progress
Autotrader fell 2.8% as JPMorgan reiterated an “underweight” rating and 440p share price target.
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JPMorgan → fall → rating
Analyst Lara Simpson highlighted the read-through for the online classifieds “debate” on AI-led discovery and disintermediation risk from the launch of Meta Platform’s AI agent, Muse.
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Simpson → highlight → agent
She thinks AI agents can “weaken click-through” and “pressure marketplace monetisation in non-exclusive supply categories”.
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agents → think → categories
Ms Simpson sees a “downside skew” to earnings and valuation as distribution competition intensifies and AI-led discovery raises the risk of further multiple compression.
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discovery → see → compression
…and 12 more, not listed.
The Aporia
