- Footsie up 12 points at 9,321
- Wall Street sharply higher
- Standard Chartered jumps 3.6% on US ruling
4.58pm: FTSE gains
The FTSE 100 added 12 points to close at 9,321 points, closing at a record high for the fourth straight day.
US stocks, meanwhile, were buoyed by Fed chair Powell’s Jackson Hole speech during which he left the door open for a September rate cut.
“For once, the Fed chairman may have done something to please the White House, as he signals that a September cut is now more likely,” IG chief market analyst Chris Beauchamp said.
“Stocks have surged in the wake of his speech, with the S&P 500 clawing back almost all the losses this week and indices in both the US and Europe firmly in positive territory. Worries about higher inflation have been cast aside for now, as investors look forward to the US economy powering ahead in the autumn.”
3.40 pm: London livens up as Wall Street pops
US stocks surged in early trade on Friday as Fed chair Powell signalled the current economic outlook “may warrant” a change in the central bank’s monetary policy, dragging the UK with it.
“The stability of the unemployment rate and other labor market measures allows us to proceed carefully as we consider changes to our policy stance,” Powell said in prepared remarks.
The Dow Jones led the gains, adding 1.7%. The Nasdaq was up 1.8%, while the S&P 500 nudged ahead 1.5%.
In London, a torpid market was woken from its slumber with the Footsie advancing 35 points.
1 pm: Wall Street set to open higher
US stocks are set to open higher as investors await US Federal Reserve chair Jerome Powell’s speech at the Jackson Hole symposium, scheduled for 3pm UK time.
Ahead of the market open, Dow Jones futures were 0.3% firmer, while those for the S&P 500 were up 0.2% and Nasdaq futures gained 0.1%.
The Footsie, in the meantime, is up 3 points at 9,312.44.
11:50am: Small-cap highlights for Friday
Revolution Beauty Group said it plans to raise £15 million in new equity and has secured an extension of banking facilities to 2028, after reporting a 25.50% drop in revenue to £142.60 million and a swing to a £16.80 million loss. Also, co-founder Tom Allsworth will return as chief executive as part of the restructuring.
Blencowe Resources reported a “major de-risking milestone” at its Orom-Cross graphite project in Uganda after completing power, water, roads and communications. The company said the works cut capital costs and prepared the project for a final feasibility study.
Separately, Alien Metals shares surged after high-grade results at its Elizabeth Hill silver project, with intercepts including 10,049 grams per tonne silver and 11.1 grams per tonne gold.
Elsewhere, Cloudbreak Discovery raised £300,000 to fund gold exploration in Western Australia after selling a Texas oil asset.
Aptamer Group shares rose on progress with licensing deals, while Zenova raised £260,000 to meet fire extinguisher demand driven by new UK regulations.
Argo Blockchain slumped 13% as debt talks dragged on, Vaultz Capital hired crypto figure James Bowater to lead partnerships, and Zenith Energy upgraded its Piedmont solar project to 10 MWp.
10am: Blue chips break higher
The Footsie is back above 9,300 two hours into Friday trade as investors remain cautious ahead of US Federal Reserve chair Jerome Powell’s speech at Jackson Hole this afternoon.
The blue-chip index is currently 1 point up at 9,310.59.
Investors aside, US President Donald Trump is also likely to be keeping a close eye. Powell has resisted Trump’s pressure to slash interest rates or resign, keeping policy steady for months. Powell is expected to outline his economic outlook amid trade tensions and uncertainty. The Fed has left rates unchanged at five straight meetings, but traders now see a 73.5% chance of a September cut – the first in nine months.
“Investors had been expecting a rate cut from the Fed next month, so if Powell were to say anything suggesting rates might be kept on hold, it could see stocks come under greater pressure,” said AJ Bell’s Dan Coatsworth.
“PMI data from across the Atlantic on Thursday pointed to robust conditions in the world’s largest economy, potentially reducing the chances of the Fed moving rates lower.”
9.45am: Small caps in the news
Cloudbreak Discovery PLC (LSE:CDL, OTC:CDBDF)) shares rose 19% after finalising the sale of US oil assets and raising £300,000. The disposal removes £75,000 in liabilities, while proceeds from the placing will fund exploration at its Darlot West gold project in Australia, where recent drilling news has already boosted investor interest. Read more
Aptamer Group PLC (AIM:APTA) rose 10% after it announced licensing progress and validation from a top-five pharmaceutical partner. The biotech is advancing enzyme-modulating Optimer binders, with one deal expected to generate royalties covering 15% of annual overheads. Read more
Argo Blockchain PLC (LSE:ARB, OTCQX:ARBKF, NASDAQ:ARBK) shares dropped 13% after warning its recapitalisation talks remain incomplete, putting its future in doubt. The crypto miner is still negotiating a vital loan with Growler Mining, while also missing a July bond payment, leaving investors facing uncertainty and the prospect of heavy dilution. Read more
Zenith Energy Ltd (LSE:ZEN, TSX-V:ZEE) said its Piedmont solar project has been upgraded from 7 MWp to 10 MWp. The regulatory reclassification is expected to boost project economics, cut completion time, and simplify construction, with CEO Andrea Cattaneo highlighting strengthened value and progress on financing and acquisitions. Read more
Zenova Group PLC (AIM:ZED) raised £260,000 through a share issue to strengthen working capital and support growth. The fire safety firm reported strong demand for its FX extinguishers, driven by regulatory changes. It met its first-month sales target of 1,000 units, with notable orders including Czech Republic Customs Authorities. Read more
Vaultz Capital PLC (AQSE:V3TC) appointed crypto veteran James Bowater as Global Head of Partnerships to drive Bitcoin mining and treasury growth. Bowater, founder of Crypto AM at City AM, has a decade of blockchain and Web3 experience. CEO Eric Benz said his expertise and network will strengthen Vaultz’s strategic expansion. Read more
88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) appointed Joanne Williams as non-executive chair following Philip Byrne’s retirement. A petroleum engineer with 25 years’ experience, Williams said she remains focused on advancing the company’s Alaskan oil projects, including Project Phoenix, now de-risked for testing, and Project Leonis, a large multi-reservoir opportunity. Read more
9.20am: Standard Chartered buoyed by US ruling
Standard Chartered PLC (LSE:STAN) is up 3.6% now – and there may be a reason for the bounce.
According to a report on Reuters, the US Justice Department has backed its stance in a long-running civil case. The rebound followed a selloff sparked by Republican lawmaker Elise Stefanik’s call for a sanctions probe.
The bank said it was unsurprised by the ruling, insisting the allegations were false.
9am: Caution prevails ahead of Fed governor’s speech
London’s blue chips are still weaker an hour into trade, now down 14 points at 9,295.33.
Other European markets are also down as investors look to US Fed chair Jerome Powell’s speech at the Jackson Hole symposium this afternoon for more direction on US interest rates.
“The last time we heard Powell speak at the July FOMC, the chair was notably hawkish on the labour market, but in light of the July downward payroll revision, we expect a somewhat different tone today,” commented Deutsche Bank’s Jim Reid.
“Investors will be keenly watching whether Powell places more emphasis on weaker payrolls versus more stable measures of labour market slack and still solid activity and inflation data.”
In Frankfurt, the DAX is down 0.25% and the Paris CAC 40 is just a few points lower. Also weighing on German stocks is news that Europe’s largest economy shrank by 0.3% in the second quarter after the statistics office revised its preliminary reading of a 0.1% contraction.
8.15am: Footsie eases back from record close
As expected, the FTSE 100 opened slightly lower after notching up a record close above 9,300 on Thursday.
About 15 minutes into the session, London’s blue-chip index is down 20 points at 9,289.31.
The Sage Group PLC (LSE:SGE), Prudential PLC (LSE:PRU) and Alliance Witan PLC (LSE:ALW) are leading the decliners with losses of 0.6% to 0.8%.
Standard Chartered PLC (LSE:STAN) tops the leaderboard, with a 3.4% gain. Pershing Square Holdings (LSE:PSH) and oil majors BP PLC (LSE:BP.) and Shell PLC (LSE:SHEL, NYSE:SHEL) are also doing well.
7,45am: Next stop, Jackson Hole
Spread betters now have the Footsie opening a few points lower after yesterday’s record close, as investors await US Federal Reserve chair Jerome Powell’s speech at the Jackson Hole symposium in Wyoming later today. The Fed chair speaks at 3pm UK time.
The three-day gathering lands at a tricky time: inflation’s still high, jobs are cooling, and the Fed is split. Some want to keep rates high, blaming tariffs, while others argue the weak labour market means it’s time to ease up on tight policy.
“While he may stick to a ‘data-dependent’ message, the venue has historically hosted major policy shifts,” commented Swissquote Bank’s Ipek Ozkardeskaya. “Markets are alert to any surprise, and there is a greater chance that we will see a hawkish surprise than the contrary.”
Ozkardeskaya noted that a cautiously hawkish tone from Powell could further unwind the market’s extra-dovish positioning. That could mean a rebound in US 2-year yields, pressure on the S&P 500, a stalling of the small-cap rally, and renewed strength in the US dollar.
“Rising global yields — notably in long-maturity JGBs — add to the risk of a broader selloff if Powell strikes a firmer line,” she added.
7.15am: Muted start expected after Thursday’s record
The FTSE 100 is likely to open flat a day after the blue chip index reached a new record above 9,300.
Pundits have London’s blue-chip index opening just a point higher after it gained 21 points to finish Thursday’s session at 9,309.2, with nine of the benchmark’s top 10 largest companies finishing in positive territory.
Across the Atlantic, US stocks finished the session lower as investors were in wait-and-see mode ahead of the Federal Reserve’s Jackson Hole gathering today.
The S&P 500 was down 0.4% while the Dow Jones and Nasdaq both fell 0.3%.
Asian markets are mixed this morning. Tokyo’s Nikkei is flat, Hong Kong’s Hang Seng is up 0.5% and Shanghai’s SSE Composite is up 1.1%. In Mumbai, the SENSEX is down 0.6% while Sydney’s S&P/ASX 200 is down 0.6%.