The FTSE 100 traded sideways in a tight range on Wednesday as investors awaited the next major catalyst for equities.

The new US president has dominated trade since his inauguration but has been fairly quiet over the past few days, leaving traders at a loss as to what to expect next.

US economic data due for release on Wednesday could well provide an impetus for a move in equities, but until then, investors are seemingly happy to hold back on taking macro-driven positions.

“There’s an overarching sense of calm in the air, perhaps a little unnerving given the storm of political drama we’ve become accustomed too since Tump took office,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“The FTSE 100 opened flat this morning, and after posting another record high yesterday it’s still riding on a wave of enthusiasm. US inflation data has scope to upset the apple cart later today, but for now at least, it’s robust company earnings that are driving markets forward.”

The latest set of upbeat earnings came from Barratt Redrow, who said they see earnings coming in at the top end of the range as completions rose.

“Housebuilder Barratt is reaping the rewards of a more stable economy and political landscape, with customer demand bouncing back and strong reservations since January,” Britzman explained.

“As a result, Barratt is now targeting the upper end of its profit expectations for the year which, when combined with good execution over the first half, should go down well with investors. Following the acquisition of Redrow, Barratt’s capital plans are in the spotlight, with the company poised to launch a £100mn annual buyback, leveraging improved cash flow and a robust capital position.”

Barratt Redrow shares were 5% at the time of writing.

Prudential was the top riser after it said it was considering selling shares in its Indian ICICI Prudential Asset Management business and would return the cash to investors. Prudential was 6% to the good around midday on Wednesday.

Barratt Redrow shares jumped on Wednesday after reporting a remarkably upbeat set of half-year results, with the housebuilder now expecting full-year adjusted profit before tax to reach the upper end of market expectations.

Results are released against a backdrop of uncertainty around the UK economy and the housing market, making Barratt Redrow’s upbeat assessment of their activities a breath of fresh air for the market.

The company, which recently acquired Redrow, delivered 6,846 total home completions in the period, showing an improvement from Barratt’s standalone figure of 6,171 in the previous year.

Investors will find the group’s sales performance has been particularly encouraging, with the net private weekly reservation rate increasing by 33% to 0.60, compared to the combined Barratt and Redrow rate of 0.45 in the same period last year.

This sales momentum has continued into the new year, with reservations maintaining a rate of 0.60 from 30 December 2024 to 2 February 2025.

Forward sales remain healthy, with 10,903 homes valued at £3,350.3 million as of 2 February 2025. Of these, 7,702 homes are either exchanged or contracted, demonstrating strong conversion of reservations to firm sales.

The company has provided guidance for total home completions between 16,800 and 17,200 for the full year, including approximately 600 joint venture completions. These full-year forecasts are perhaps the driving force in the 5% gain in shares at the time of writing.

Financial results show adjusted profit before tax of £167.1 million, after accounting for purchase price allocation adjustments of £50.4 million related to the Redrow acquisition. The company maintains a robust balance sheet with net cash of £458.9 million, despite paying a final dividend of £170.5 million and increasing investment in land and work in progress by £332 million.

 “Barratt Redrow sprinkled some optimism into the UK housing sector this morning, as Britain’s biggest builder reported earnings at the upper end of market expectations. Strong demand heading into 2025 was reinforced by the seamless integration of Redrow, which is now on track to deliver over £100m in cost synergies,” said Mark Crouch, market analyst at investment platform eToro.

“With UK housebuilders battling numerous challenges in recent months, this morning’s update will come as a relief to investors, as Barratt bucks the trend of disappointing sector earnings. Higher mortgage rates and building costs have weighed heavily on profitability for housebuilders, and while Labour’s planning reforms are expected to help, their impact will take time.”

The FTSE 100 started the session on an even keel, with the mix of macroeconomic developments and corporate updates providing investors little impetus to move the index in either direction.

Donald Trump was again on the tip of everyone’s tongue. Tariffs on steel and aluminium were ushered through overnight, leaving the market questioning who or what will be next. The EU? Automotives? Higher tariffs on China? Time will tell.

In the meantime, the market seems happy to focus on reasonably strong corporate results in the US and Europe, which continue to support demand for equities, with the FTSE 100 hitting another record yesterday.

“UK markets are shrugging off Trump’s latest tariff storm, with the FTSE 100 rising at the open, extending gains from yesterday to reach another all-time high,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown

There wasn’t much to shout about regarding FTSE 100 company earnings on Tuesday. The headline corporate story was the release of BP’s Q4 2024 results that followed reports of an activist investor building a stake in the oil company. 

Indeed, BP’s results highlighted the need for a rethink. Refining margins tumbled as overall profit levels took a hit. The company may attribute lower profits to lower oil prices, but comparisons to other major oil companies will show that BP has much room for improvement. 

“BP’s latest earnings provided plenty of fodder for activist investor Elliott after reports it had built a stake in the business. The worst annual profit since the pandemic will have done little to reassure other shareholders that the current plan is working,” said AJ Bell investment director Russ Mould.

“Murray Auchincloss said the right things about increasing cash flow and returns and a ‘new direction’ for company ahead of what is turning into a crunch investor day later this month.

“The market has heard a lot from BP about strategy and vision – it wants to see action. This might include abandoning a target to develop 50 gigawatts of renewable energy capacity by 2030.”

BP shares were flat at the time of writing.

Entain was the FTSE 100’s biggest casualty on the news the CEO will depart after a worryingly short period in post. The move rattled investors and shares dropped around 9%. 

“Ladbrokes owner Entain has abruptly parted ways with CEO Gavin Isaacs after less than six months in the role,” Matt Britzman explained.

“Details are scarce, and while Entain used the moment to reassure investors that it’s on track to meet 2025 profit expectations, sudden leadership shake-ups rarely go down smoothly – questions will be flying.”