FTSE 100: London markets mixed as rate jitters soften Standard Chartered’s boost
London’s FTSE 100 had a subdued start to the day as interest rate jitters rippled across the Atlantic and weighed down the boost of Standard Chartered and British Airways owner IAG.
London’s flagship index nudged up 0.25 per cent after rosy trading updates for Standard Chartered, Astrazeneca and IAG.
Standard Chartered surged six per cent in early trading after beating analyst profit predictions on the back of rising interest rates.
Astrazeneca meanwhile bumped up 3.46 per cent after similarly topping analyst estimates.
Natwest’s share price was up around 1.5 per cent at the open following its bumper profits this morning, and in wake of the row involving Nigel Farage’s bank accounts. Its chair Howard Davies announced he has no intention to quit.
Investors are looking more favourably at aviation again after a bruising pandemic period for the sector. British Airways owner IAG reported a surge in first half underlying operating profit this morning, sending its shares up 2.23 per cent.
However, positive sentiment was tempered in the capital on the back of stronger than expected US growth data, raising the prospect of further rate pain on both sides of the Atlantic.
“New data showed the US economy grew more than expected in the second quarter, throwing some water on the idea that the Federal Reserve’s about to end its hiking cycle,” said Sophie Lund-Yates, an equity analyst at Hargreaves Lansdown.
“This led the Dow Jones Industrial Average to break an impressive winning streak, and sentiment is also being quashed on the FTSE 100 in response, with only very minor gains at the open”.
Markets are also facing a brief relief as the flurry of earnings slows a little for the traditionally quieter Friday, she added.
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