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 IPOs and placings
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 midday: Stocks stay up ahead of Fed decision; UK GDP in focus
(Sharecast News) - London stocks were still in the black by midday on Wednesday as weak UK GDP data raised expectations of a rate cut by the Bank of England, and as investors eyed the latest policy announcement from the US Federal Reserve. The FTSE 100 was up 0.3% at 7,561.60.
Data released earlier by the Office for National Statistics showed that the economy unexpectedly shrank in October, with all three sectors contracting.
The economy shrank 0.3% following 0.2% growth in September and versus expectations for a flat performance. Over the last quarter, GDP was unchanged.
The data showed that services output fell by 0.2% in October, driven by a decline in information and communication, and was the main contributor to the fall in GDP growth. The sector had grown 0.2% in September.
Meanwhile, production output was down 0.8%, driven by widespread declines in manufacturing, after showing no growth in September.
Activity in the construction sector declined 0.5% in October following 0.4% growth the month before.
Danni Hewson, head of financial analysis at AJ Bell, said: "The FTSE 100 ticked higher as investors await the latest decision from the Federal Reserve on interest rates.
"So far, the market is seeing nothing to disabuse it of the notion that rate cuts are on the way in 2024 as US inflation came in as expected yesterday and UK GDP figures show the economy is weakening faster than anticipated.
"To what extent Fed chair Jerome Powell and his Bank of England counterpart Andrew Bailey seek to dampen these expectations could well determine the trajectory of stocks heading into the end of the year.
"The worse-than-expected 0.3% decline in October GDP may prompt some concern given the lagged impact of interest rate hikes mean the full pain is not yet being felt by individuals or businesses. So far, the UK has managed to avoid recession but many more releases like today's might put its ability to keep its head above water under question."
The US producer price index for November is due at 1330 GMT, while the Fed's final policy announcement of 2023 is at 1900 GMT.
In equity markets, Entain shot higher as it said that chief executive officer Jette Nygaard-Andersen has resigned from her position with immediate effect. It has appointed Stella David, a non-executive director, as interim CEO until a permanent replacement is selected.
Jette's decision to leave came after the resolution of HMRC's investigation into the company's legacy Turkish-facing business.
Ventilation products group Volution also rallied as it said it expects to beat full-year profit forecasts after a strong performance across the board in the first four months of the financial year.
Paragon Banking Group gained after RBC Capital Markets upgraded the shares to 'outperform' from 'sector perform' and hiked the price target to 850p from 700p.
On the downside, B&M European Value Retail tumbled after SSA investments sold 27.8m shares in the discount retailer in a placing. The shares were priced at 582.5p each, raising aggregate gross sale proceeds of £162.1m.
Aston Martin was knocked lower by a downgrade to 'hold' at HSBC.
Market Movers
FTSE 100 (UKX) 7,561.60 0.25% FTSE 250 (MCX) 18,703.80 0.22% techMARK (TASX) 4,156.51 0.43%
FTSE 100 - Risers
Entain (ENT) 840.60p 4.34% AstraZeneca (AZN) 10,400.00p 2.24% Croda International (CRDA) 4,799.00p 2.02% Antofagasta (ANTO) 1,565.00p 1.76% Convatec Group (CTEC) 235.20p 1.55% Hikma Pharmaceuticals (HIK) 1,770.00p 1.35% IMI (IMI) 1,651.00p 1.23% GSK (GSK) 1,467.00p 1.21% Rentokil Initial (RTO) 417.20p 1.11% Beazley (BEZ) 547.50p 1.01%
FTSE 100 - Fallers
B&M European Value Retail S.A. (DI) (BME) 562.20p -6.36% Rightmove (RMV) 569.20p -4.30% Weir Group (WEIR) 1,842.50p -3.33% Vodafone Group (VOD) 65.17p -2.89% Rolls-Royce Holdings (RR.) 299.20p -1.81% Prudential (PRU) 866.60p -1.66% Auto Trader Group (AUTO) 735.40p -1.34% International Consolidated Airlines Group SA (CDI) (IAG) 157.30p -1.19% BT Group (BT.A) 124.70p -1.19% Anglo American (AAL) 1,676.60p -1.14%
FTSE 250 - Risers
Volution Group (FAN) 415.00p 4.22% Chemring Group (CHG) 336.00p 3.07% Paragon Banking Group (PAG) 586.50p 2.71% IntegraFin Holding (IHP) 267.40p 2.61% Johnson Matthey (JMAT) 1,684.00p 2.37% Bridgepoint Group (Reg S) (BPT) 252.00p 2.02% Pagegroup (PAGE) 480.20p 1.95% Tyman (TYMN) 269.50p 1.89% Helios Towers (HTWS) 70.10p 1.89% Vesuvius (VSVS) 456.00p 1.83%
FTSE 250 - Fallers
Aston Martin Lagonda Global Holdings (AML) 215.20p -6.03% Ferrexpo (FXPO) 71.00p -3.92% TUI AG Reg Shs (DI) (TUI) 601.50p -3.37% Energean (ENOG) 953.50p -3.20% Discoverie Group (DSCV) 719.00p -2.71% Wizz Air Holdings (WIZZ) 1,932.50p -2.60% Foresight Group Holdings Limited NPV (FSG) 395.00p -2.47% Genus (GNS) 1,967.00p -1.65% Redrow (RDW) 562.50p -1.40% Pets at Home Group (PETS) 302.40p -1.37%
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.