The FTSE 100 was in a holding pattern on Wednesday as investors weighed contradictory commentary on interest rates, falling oil prices and soft Chinese economic data.
London’s leading index was up just 4 points to 7,414 at the time of writing.
“The FTSE 100 may have recovered from the lows seen in late October, as investors react positively to the latest decisions and noises from central banks, but it is stopping short of a full-blown rally for now,” said AJ Bell investment director Russ Mould.
“The index is flat, despite more gains in the US overnight, and the debate continues to oscillate between higher rates for longer and the prospect of rate cuts in 2024. Evidence of the continuing lukewarm Covid recovery in China is also not helping sentiment with Asian markets weak.”
Weaker oil prices were also a drag on equities as oil majors fell and concerns rose about demand.
FTSE 100 movers
Marks & Spencer was the FTSE 100’s top gainer after announcing a bumper increase in profits and sales to the extent the company declared their first dividend since 2019. Investors would have been pleased to see strength in the clothing business as a turnaround strategy shows signs of success.
“The real talking point was the reintroduction of dividend payments, which should put a spring in investors’ steps. The yield is relatively low, but it marks a moment of significance for the group, and it’s a real statement of confidence around the outlook for the business from M&S’ management,” said Aarin Chiekrie, equity analyst at Hargreaves Lansdown.
Marks & Spencer shares were 9% at the time of writing.
Hargreaves Lansdown was at the bottom of the pile on Wednesday with losses of 3% after being downgraded to ‘sell’ by analysts at UBS who gave the wealth platform a 650p price target. Hargreaves Lansdown last traded at 705p.
Associated British Foods continued yesterday’s rally adding 2.5%.