The FTSE 100 (^FTSE) had changed direction and edged into the green by the time Wall Street opened for business on Wednesday, while European markets were mixed and US stocks searched for direction as president Donald Trump adjusted his position on the Russia-Ukraine war.
The US president said Kyiv could “win all of Ukraine back in its original form” in a post on his social media platform Truth Social. Ukraine could reclaim “the original borders from where this war started” with Nato and Europe’s support, he wrote.
“Putin and Russia are in BIG Economic trouble, and this is the time for Ukraine to act.”
Kremlin spokesman Dmitry Peskov insisted Russia’s economy fully satisfied the needs of its army and it was a big mistake to believe that Ukraine could win back Russian-occupied territories, according to a report by Reuters.
The comments follow a stalled campaign by Trump to broker peace talks with Russian president Vladimir Putin in Alaska and Ukrainian president Volodymyr Zelensky in the US. Trump has previously suggested any peace process may involve Ukraine giving up territory — a move Zelensky has consistently said no to.
Oil markets have been sensitive to news about the conflict, as Russia is part of Opec+ and many leaders have agreed to sanctions on acquiring its oil while the war continues.
Brent crude (BZ=F) futures rose 1.4% to trade around the $68.58 per barrel mark, while West Texas Intermediate futures (CL=F) gained 1.6% to trade at $64.40 per barrel.
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London’s premier index reversed its fortunes in the afternoon, trading 0.2% higher. London-listed mining stocks were lifted alongside precious metal prices.
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Germany’s DAX (^GDAXI) rose 0.3%, with defence stocks supporting gains.
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France’s CAC 40 (^FCHI) declined 0.7%.
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The pan-European STOXX 600 (^STOXX) fell 0.3%.
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The pound lost 0.6% against the dollar (GBPUSD=X), heading towards the $1.34 mark.
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Over in the US, the Dow (^DJI) and the S&P 500 (^GSPC) rose 0.2% while the tech-heavy Nasdaq (^IXIC) fell 1%.
LIVE 10 updates
- Copper gains boost miners
Chris Beauchamp, chief market analyst at investing and trading platform IG, said:
- How US stocks are faring at the opening bell
- Crude prices firm up
David Morrison, senior market analyst at FCA regulated fintech and financial services provider Trade Nation, said:
- Bond giant Pimco betting on more rate cuts than currently pencilled: FT
Investment management firm Pimco has said it is betting on the Bank of England cutting rates at a faster clip than previously thought, as it expects the heat to come out of inflationary pressures.
Rate cuts tend to boost short-term bond prices. Pimco has opted for an overweight position relative to the benchmark index in five-year gilts, a FT report said.
The bet comes despite data yesterday showing the UK is on track for the highest inflation of G7 countries from the OECD.
- Stocks to watch at the opening bell: Lithium Americas
Yahoo Finance UK’s Vicky McKeever writes:
Shares in Lithium Americas soared nearly 82% in pre-market trading on Wednesday, following reports that the Trump administration is seeking an equity stake in the miner.
Reuters reported late on Tuesday that the administration was eyeing an equity stake of as much as 10% in Lithium Americas, citing two people familiar with the discussion.
This reportedly comes as the administration renegotiates terms of Lithium America’s $2.26bn Energy Department loan for its Thacker Pass lithium project with General Motors (GM).
- JD Sports stock higher even as sales and profits drop
JD Sports (JD.L) has revealed weaker like-for-like sales and profits over the past half-year in the face of “strained consumer finances”.
The drop was partly linked to a fall in sales in the UK, where it was also impacted by a number of store closures, leaving the group with 13 fewer UK stores by August.
Boss Regis Schultz told investors on Wednesday that he is “cautious” about trading in the second half of the financial year.
It came as the company reported that group like-for-like sales dropped by 2.5% to £5.94bn over the 26 weeks to 2 August.
Nevertheless, organic sales were up 2.7% and total sales grew by 18% after it was buoyed by deals to buy the Hibbert and Courir brands.
The company reported that like-for-like sales dropped by 3.8% in its key North America arm and were down 3.3% in the UK.
JD Sports said its weaker UK trade was “affected by tough prior-year comparatives due to the Euro 2024 football tournament”.
- Beauty Tech Group prices IPO
The group behind beauty gadgets said to be used by the likes of Kim Kardashian and Serena Williams is set to be valued at up to £320m when it makes its stock market next month.
The Beauty Tech Group, which owns brands CurrentBody, ZIIP Beauty and Tria Laser, said shares for the initial public offering (IPO) will be priced at 251p to 291p each.
This will value the firm at between around £280m and £320m when it lists on the London market.
It plans to launch the IPO in October to “position the group for the next stage of its development”.
This includes “further enhancing the group’s profile and brand awareness, assisting in retaining and incentivising senior management and key employees and providing it with a platform for continued growth”, according to the company.
It will raise around £29m from offering 11.6m new shares in the firm, with up to 29.3m shares also being sold by existing shareholders.
- US stock futures higher after Wall Street ends record-setting rally
Our US team writes:
US stock futures ticked up after Wall Street ended a record-setting rally.
Futures attached to the Dow Jones Industrial Average (YM=F), the S&P 500 (ES=F), and the tech-heavy Nasdaq 100 (NQ=F) rose roughly 0.2%.
Stocks slid on Tuesday after Federal Reserve Chair Jerome Powell’s speech in Rhode Island underscored that low employment and high inflation leave the central bank with “no-risk free path.”
While Powell left the door open to further rate cuts this year, he signalled the Fed would approach additional reductions with caution. The Fed chair also described stocks as “fairly highly valued.”
- Good morning!
Hello from London. Lucy Harley-McKeown here. It’s a relatively quiet day in terms of data releases but we’ll be watching for:
JD Sports (JD.L) also releases results today.
Let’s get to it.
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