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 pre-open: Stocks seen down on US rate worries
(Sharecast News) - London stocks were set to fall at the open on Wednesday following heavy losses on Wall Street and in Asia, amid worries about US rates. The FTSE 100 was called to open six points lower at 7,464.
US and Asian markets slid, and US Treasury yields jumped after better-than-expected JOLTS job openings data on Tuesday.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "Even a hint of an improving US jobs market sends shivers down investors' spines.
"This is why the stronger than expected job openings data from the US spurred panic across the global financial markets yesterday. Although hirings and firings remained stable, the financial world was unhappy to see so many job opportunities offered to Americans as the data hinted that the US jobs market could be going back toward tightening, and not toward loosening. And that means that Americans will keep their jobs, find new ones, asked better pays, and keep spending.
"That spending will keep US growth above average and continue pushing inflation higher, and the Federal Reserve (Fed) will not only keep interest rates higher for longer but eventually be obliged to hike them more. Alas, a catastrophic scenario for the global financial markets where the rising US yields threaten to destroy value everywhere. PS: JOLTS data is volatile, and one data point is insufficient to point at changing trend. We still believe that the US jobs market will continue to loosen."
On the macro front, the S&P Global/CIPS UK services purchasing managers' index for September is due at 0930 BST, while across the pond, the ADP report for September is at 1315 BST.
In corporate news, Tesco hiked its retail profit and cash flow targets after a strong first half, with sales rising by 9% on the back of easing inflation.
The supermarket giant said, as a result of significant cost reductions from the Save to Invest cost-cutting programme, it now expects to deliver a retail adjusted operating profit of £2.6bn-2.7bn for the 12 months to 25 February. Previous guidance was for no growth. Retail free cash flow is forecast to hit £1.8bn-2.0bn this year, ahead of the medium-term guidance range of £1.4bn-1.8bn.
Spirent Communications cut its near-term outlook as it highlighted an "extremely challenged" telecommunications market and the fact that one of its largest customers has delayed expenditure and technology investments.
"The uptick in demand we witnessed in the second quarter dissipated over the summer months and the anticipated rebound in September has not happened," the company said. "In contrast, we did see strong growth from our non-telecommunications end markets such as Positioning."
Spirent provides automated test and assurance solutions for next-generation devices and networks.
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.