The FTSE 100 was largely flat on Wednesday as calm descended over global equities after a tumultuous week driven by concerns about AI valuations and interest rate expectations.
London’s leading index was marginally higher at the time of writing and looked set to flip between negative and positive territory for the rest of the session.
“Investors will breathe a sigh of relief that the market sell-off has lost momentum,” said Russ Mould, investment director at AJ Bell.
“Pockets of Europe and Asia were up on Wednesday, and futures prices imply a similar trend when Wall Street opens later today.
“It’s the good news everyone wanted. The key question is whether this is simply the calm before the storm.”
And the storm Mould alluded to could come later today with Nvidia earnings, which hold the key to the immediate trajectory of global stocks.
“Nvidia reports tonight and the slightest bit of news to disappoint investors has the potential to whip up a tornado across global markets. Investors will be hanging on Jensen Huang’s every word and looking for clues that big investment in AI is worth it,” Mould said.
The FTSE 100 was split nearly 50:50 between winners and losers, with investors taking a stock-specific view ahead of Nvidia’s earnings.
Fresnillo soared to the top of the leaderboard as gold prices extended gains above $4,000. Fresnillo rose 6% while Endeavour rose 3%.
Severn Trent shares were 1% lower despite announcing rising revenues and profits.
“Severn Trent’s latest trading update demonstrates strong momentum, with a 57% profit jump and robust capital investment, reflecting solid execution amid a complex regulatory environment,” said Adam Vettese, market analyst for eToro.
Sage was 3% higher on upbeat earnings and a fresh £300m share buyback.
BAE Systems and Babcock were the top FTSE 100 fallers, with BAE losing 2.3%.