London stocks were broadly flat on Wednesday morning, with the market treading on egg shells after a weak handover from New York and Asia.
The FTSE 100 slipped just 1.41 points to 9,713.55. The FTSE 250 was down 9.81 points at 21,985.67, while the AIM All-Share edged 0.2% lower at 758.31.
Across Europe, sentiment was subdued. The CAC 40 in Paris was down 0.2% and Frankfurt’s DAX 40 lost 0.7%. Traders remained wary ahead of the US ADP private payrolls report, one of few key data releases still scheduled during the prolonged US government shutdown. The report, due at 13:15 GMT, is expected to show a 25,000 rise in private employment after a 32,000 fall last month.
Wall Street closed lower on Tuesday, with the Dow Jones down 0.5%, the S&P 500 off 1.2%, and the Nasdaq tumbling 2.0%. Tech stocks bore the brunt of the selling as investors pared back exposure to growth names amid ongoing political gridlock and fears of stretched valuations.
Asian markets also struggled overnight. Tokyo’s Nikkei 225 slumped 2.5%, the Hang Seng in Hong Kong fell 0.1%, and Sydney’s ASX 200 dropped 0.1%. Shanghai was one of the few bright spots, inching up 0.2%.
In London, focus remains on the upcoming UK budget after Chancellor Rachel Reeves warned that “everyone will have to contribute” to restoring the nation’s finances. The National Institute of Economic & Social Research said Reeves may need to raise the basic rate of income tax by 2p to meet fiscal targets, estimating a £50 billion shortfall.
Among individual movers, Barratt Redrow rose 2% after reaffirming its annual outlook and reporting a “resilient performance” despite housing market headwinds. Trainline jumped nearly 10% as it lifted annual profit guidance following strong first-half results.
JD Wetherspoon slipped 1.8% despite higher quarterly sales, with investors wary of potential tax changes affecting the hospitality sector.
Headlam tumbled 12% after warning that weaker trading would drag full-year results below expectations.
With the US still mired in political stalemate and Europe bracing for fresh fiscal tightening, markets appeared content to pause – for now – until clearer signals emerge from Washington and Westminster.