London midday: FTSE turns positive as investors await Fed announcement

(Sharecast News) - London stocks had turned positive by midday on Wednesday as investors eyed the latest policy announcement from the Federal Reserve and a slew of US tech earnings. The FTSE 100 was up 0.3% at 8,562.54, reversing earlier small losses.

Russ Mould, investment director at AJ Bell, said: "DeepSeek's appearance on the scene might have caused a shift in the narrative for tech stocks but it hasn't been the catalyst for a sustained market sell-off.

"US markets rebounded yesterday and look set to continue on the same path today ahead of two major events.

"First up is the Federal Reserve's latest interest rate decision where markets are expecting no change. The US economy is proving to be resilient and the central bank might find it hard to justify cutting the rate of borrowing.

"More important to investors will be the next set of numbers from the Magnificent Seven, beginning today with Microsoft, Meta and Tesla. This trio have the power to move markets given their size and keen investor following. The market will be watching closely for updates on AI spending and usage by Microsoft and Meta, together with any new commentary on DeepSeek's arrival and cost advantages. Tesla will be all about margins and production expectations in a patchy period for electric vehicles."

The US rate announcement is due at 1900 GMT.

In equity markets, Fresnillo shot higher as the precious metals miner met guidance with silver output in 2024 and marginally beat expectations with gold production, with full-year profits more than doubling as costs fell and commodity prices jumped.

Pennon reversed earlier losses to trade up after saying it was looking to raise about £490m in a rights issue to support its investment programme through to 2030.

Manufacturing firm Dowlais surged after agreeing to be taken over by American Axle & Manufacturing in a £1.2bn deal.

WH Smith rallied after it reported a 4% jump in revenue for the 21 weeks to 25 January as it hailed strong momentum in the travel business, although high street sales dropped as expected.

The retailer confirmed earlier this week that it was considering a possible sale of the high street segment.

On the downside, Raspberry Pi tumbled even as the low-cost computer platform maker said it expected to make annual adjusted core earnings of at least $36m. The shares have gained more than 150% since the IPO so the weakness could be down to some profit-taking.

Market Movers

FTSE 100 (UKX) 8,562.54 0.34% FTSE 250 (MCX) 20,707.62 0.58% techMARK (TASX) 4,766.15 0.07%

FTSE 100 - Risers

Beazley (BEZ) 838.50p 3.26% International Consolidated Airlines Group SA (CDI) (IAG) 332.00p 2.88% Fresnillo (FRES) 672.00p 2.28% Scottish Mortgage Inv Trust (SMT) 1,065.50p 2.26% Prudential (PRU) 670.40p 2.10% United Utilities Group (UU.) 1,000.50p 2.07% Admiral Group (ADM) 2,707.00p 1.88% Barclays (BARC) 294.35p 1.73% NATWEST GROUP (NWG) 432.40p 1.69% Antofagasta (ANTO) 1,686.50p 1.66%

FTSE 100 - Fallers

BAE Systems (BA.) 1,219.50p -2.52% Smurfit Westrock (DI) (SWR) 4,280.00p -1.50% Diageo (DGE) 2,462.50p -1.30% Glencore (GLEN) 350.80p -1.17% SSE (SSE) 1,569.00p -0.95% BP (BP.) 414.75p -0.86% Haleon (HLN) 374.80p -0.77% LondonMetric Property (LMP) 184.50p -0.65% Entain (ENT) 698.00p -0.63% Experian (EXPN) 3,942.00p -0.61%

FTSE 250 - Risers

WH Smith (SMWH) 1,277.00p 7.31% Bank of Georgia Group (BGEO) 4,845.00p 6.72% Pennon Group (PNN) 541.00p 4.95% Genus (GNS) 1,842.00p 3.83% TBC Bank Group (TBCG) 3,345.00p 3.24% Polar Capital Technology Trust (PCT) 369.50p 3.07% Watches of Switzerland Group (WOSG) 540.50p 3.05% Allianz Technology Trust (ATT) 440.50p 2.92% Indivior (INDV) 998.50p 2.73% Pets at Home Group (PETS) 227.80p 2.71%

FTSE 250 - Fallers

Raspberry PI Holdings (RPI) 691.00p -6.62% BH Macro Ltd. GBP Shares (BHMG) 385.50p -4.93% SThree (STEM) 272.00p -3.03% Wetherspoon (J.D.) (JDW) 614.50p -1.68% Greencoat UK Wind (UKW) 121.20p -1.62% Hammerson (HMSO) 279.60p -1.62% Ashmore Group (ASHM) 167.20p -1.42% Greggs (GRG) 2,124.00p -1.12% Harbour Energy (HBR) 235.00p -1.09% International Workplace Group (IWG) 165.90p -1.07%