London stocks opened slightly lower on Wednesday, with the FTSE 100 down 5.06 points, 0.1%, at 9,447.71. The FTSE 250 rose 96.95 points, 0.4%, to 22,125.13, while the AIM All-Share added 3.67 points, 0.5%, at 793.23.
Burberry led the FTSE 100, climbing 6.6% in a positive read-across, while Pets at Home added 3.6% and CVS Group gained 6.8%. The Competition & Markets Authority proposed major reforms for the £6.3 billion veterinary services market, requiring companies to publish comprehensive price lists and disclose corporate ownership. CVS and Pets at Home are among the six large groups affected.
Gold continued to appreciate, rising to $4,207.88 an ounce, reflecting ongoing safe-haven demand as investors monitor trade tensions and market volatility. The pound slipped below $1.33 following mixed UK labour data, with unemployment ticking up slightly and total pay growth surprising on the upside.
US markets are expected to open higher today, as risk sentiment picks up once again. Although there have been some sharp dips in stocks and risky assets in recent days, dip-buying has been the main theme. Investors appear unwilling to give up on this stock market rally, with a strong earnings season underway. The Fed’s dovish signals and a series of better-than-expected corporate earnings are driving sentiment this morning.
Federal Reserve Chair Jerome Powell noted slower payroll gains and elevated employment risks, hinting the Fed could pause balance sheet reductions in coming months. His dovish tone has helped underpin sentiment in Europe.