The FTSE 100 conceded early gains to close down 0.2% at 8,268.70 on Wednesday, as heavyweights BP and Shell fell amid easing oil prices. The FTSE 250 also dipped, ending 0.1% lower at 20,755.44.
Megan Greene, a member of the Monetary Policy Committee, highlighted potential upside risks to economic activity, advocating for a gradual approach to unwinding restrictions. She expressed concerns over persistent services inflation and described recent metrics as not overly encouraging. Greene was one of four MPC members who voted to hold rates steady in August. This hawkish tone weighed on rate-sensitive housebuilders, with Taylor Wimpey declining 1.7% and Persimmon dropping 2.4%.
Rentokil saw a 4.2% surge after appointing Brian Baldwin, head of research at Trian Fund Management, to its board. Baldwin’s arrival has sparked speculation about a potential US listing for the company, which primarily operates in North America. However, Rentokil recently warned of slower growth and a strong pound impacting full-year profits, adding to previous guidance cuts.
Miner Fresnillo benefited from rising gold prices, up 3.4%, while British Airways owner International Consolidated Airlines rose 0.5% after positive comments from JPMorgan, which also boosted easyJet by 2.2%. Air France saw a significant jump of 6.8% in Paris after being double-upgraded by JPM to ‘overweight’.
Beazley gained 0.9% as Deutsche Bank raised its price target and reiterated a ‘buy’ rating. Rio Tinto attracted attention, rising 0.6%, as analysts visited its Canadian operations, outlining plans to improve margins.
Rightmove fell 1.6% amid declining expectations for a successful bid from Australia’s REA Group, which has rejected multiple proposals deemed “unattractive.” Analysts at Citi suggested the likelihood of a deal’s completion was low, while Jefferies described REA’s attempts as a “last throw of the dice.”
Oil giants BP and Shell closed down 2.3% and 1.4%, respectively, as demand concerns overshadowed potential supply disruptions in the Middle East. Despite heightened tensions in the region, investor sentiment appears to have dampened regarding the risks of significant supply issues.
In a contrasting performance, Flutter Entertainment surged 7.2% after announcing a $5 billion share buyback and ambitious plans to double its annual profit by 2027. The company targets yearly revenue of $21 billion by that year, a 78% increase from 2023 levels, alongside adjusted earnings expectations rising significantly.
DFS Furniture climbed 6.6% amid growing optimism after two years of declining revenue. Despite a 9.3% revenue drop to £987.1 million, CEO Tim Stacey expressed confidence in the company’s future positioning to benefit from market recovery, as the upholstery market continues its long path to recovery.
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