Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
London pre-open: Stocks seen up as rate hike fears ease
(Sharecast News) - London stocks were set to rise at the open on Friday as worries about more aggressive rate hikes by the US Federal Reserve eased. The FTSE 100 was called to open 52 points higher at 7,092.
CMC Markets analyst Michael Hewson said: "With the Federal Reserve July meeting less than two weeks away, and the unwelcome nature of the stronger than expected inflation numbers, markets had increasingly convinced themselves that instead of raising rates by 75bps that the Fed might be tempted to go further by 100bps. This view was reinforced by Atlanta Fed President Raphael Bostic when he said 'everything is in play' for July 27th.
"The risk of this outcome was tempered by comments from Federal Reserve governor Christopher Waller, who said that he thought the market was getting ahead of itself by 100bps. This appeared to be a softening of his tone from his comments a few weeks ago when he said the Fed was 'all in' on inflation. This was followed by comments from St. Louis Fed President James Bullard that he wasn't in favour of a 100bps move at this time, which in turn helped pull US markets off their lows of the day, even though they still finished the day lower.
"This shift of tone looks set to translate into a more positive tone for European markets this morning, as we look to open higher.
"These interventions by two of the Fed's most hawkish members appear to reduce the likelihood that the Fed will do 100bps at this point, but one can never say never. These interventions do appear to have reduced the risk of such an outcome."
In corporate news, luxury fashion house Burberry said first-quarter same-store sales increased just 1% year-on-year as revenues were impacted by lockdowns across mainland China.
Burberry said retail revenues for the 13 weeks ended 2 July came to £505.0m, up 5% at reported currency and unchanged at constant exchange rates. The company added that it continues to target high-single digit revenue growth and 20% margins in the medium-term and also expects a full-year currency tail wind of roughly £190.0m on revenue and approximately £90.0m adjusted operating profit.
Sales, marketing and support services group DCC said it delivered "strong growth" in the "seasonally less significant" first quarter of its new trading year.
DCC said group operating profit was in line with expectations and well ahead of the prior year, driven by strong growth in DCC Energy. The FTSE 100-listed firm added that its DCC Healthcare unit traded "robustly and in line with expectations", while its DCC Technology wing also recorded strong growth, benefitting from its recent acquisition of Almo.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.