MARKETS LIVE: US futures slide ahead of Fed minutes as bond yields and oil rise Proactive uses images sourced from Shutterstock
Dow Jones futures: 51,369.00.
S&P 500 futures: 7,840.25.
Nasdaq 100 futures: 31,254.50.
9.30 EDT: Dow futures slip as gold falls
Dow Jones futures fell 64 points since the previous update, while S&P 500 futures edged up 0.75 points and Nasdaq 100 futures climbed 6.75 points; all three remained lower on the day.
Corteva led gainers, rising 2.95% to $14.32, while Seagate was the biggest faller, down 2% at $789.49.
A stronger dollar weighed on gold, with spot prices and futures both down 1.8%, at $4,087.43 and $4,113.76 respectively.
Vital Knowledge analysts said surging AI spending would likely coincide with a ‘tidal wave’ of debt issuance.
8.00 EDT: Wall Street preview
Dow Jones futures fell 383 points to 51,433.00, S&P 500 futures dropped 34.50 points to 7,839.50 and Nasdaq 100 futures lost 235.50 points to 31,247.75 as investors awaited the Federal Reserve’s September minutes.
The minutes follow the Fed’s first interest rate rise since 2023, with projections signalling further increases before year-end.
However, softer employment data and comments from officials have tempered expectations of another increase this month.
US and French government bond yields climbed, while Brent crude rose to $101.99 a barrel, keeping inflation concerns in focus.
Constellation Brands fell in premarket trading after a cautious full-year outlook overshadowed better-than-expected quarterly revenue and profit.
Levi Strauss reports after the close, ahead of major Wall Street banks next week.
In London, the FTSE 100 recovered 12.87 points since the previous update to 10,471.86, but remained 69.83 points lower on the day.
12.00 BST: FTSE losses deepen as oil climbs
The FTSE 100 lost another 32.82 points since the previous update, while the FTSE 250 shed 46.94 points as London’s losses deepened.
JD Sports Fashion remains the top gainer, up 3.04% to 82.78p, while Standard Chartered led the fallers, down 3.95% to 2,164.08p.
Meanwhile, Brent futures rose to $101.29 a barrel, and WTI reached $89.91 amid continuing uncertainty over Gulf supplies.
ING’s Warren Patterson cited a ‘clear tug-of-war’ between improving Gulf supply and lingering threats.
11.00 BST: FTSE losses deepen as bond yields rise
The FTSE 100 extended its losses, shedding another 33.92 points since the previous update as rising global government bond yields dented appetite for equities.
The blue-chip index slipped from 10,525.73, while the FTSE 250 lost 63.01 points from 24,231.37, surrendering its earlier gain.
Weaker metals weighed on miners, while utilities came under pressure as yields climbed.
Investors await the Federal Reserve’s September minutes, UK gilt tenders and a $39bn US 10-year Treasury auction.
10.00 am BST: Retailers lead London risers
JD Sports led the FTSE 100 gainers as retail and telecommunications shares outperformed a weaker wider market.
The sportswear retailer climbed 3.2% to 82.94p, followed by Marks & Spencer, which gained 2.2% to 394.4p.
Vodafone advanced 2.2%, Airtel Africa rose 1.9% and BT Group added 1.9%, while Reckitt and Auto Trader gained 1.8%.
Despite the strength among the leading shares, the FTSE 100 remained 17 points, or 0.16%, lower at 10,525.
Mid-caps moved into positive territory, with the FTSE 250 gaining 13 points, or 0.05%, to 24,228.
The mixed performance suggested investors were rotating into selected retailers, communications groups and consumer shares rather than driving a broad market recovery.
The AIM All-Share remained slightly weaker, falling 0.08% to 782.97.
9.00 am BST: Pennon reset weighs on water sector
The FTSE 100 remained 42 points, or 0.4%, lower at 10,499 as weakness among water utilities, banks and miners outweighed gains across consumer and healthcare shares.
Pennon plunged 17% after launching a £550 million rights issue and cutting its dividend by around 30%, while Severn Trent fell 3.2% and United Utilities lost 2.8%.
JD Sports led the blue-chip risers with a 2% gain, followed by Haleon, Airtel Africa, Marks and Spencer and Reckitt Benckiser.
The FTSE 250 slipped 0.2%, although Avon Technologies surged 11.4% after forecasting results ahead of expectations and Bridgepoint jumped 7.2% after upgrading its guidance.
The AIM All-Share fell 0.2%, despite Mercantile Ports and Logistics advancing 26% as interest continued following its Karanja Port court update.
8.15 am BST: London opens lower
London opened lower on Wednesday, with the FTSE 100 falling 40 points, or 0.4%, to 10,501 as rising oil prices, elevated bond yields and weakness across Asian markets weighed on sentiment.
Defensive shares dominated the risers, with British American Tobacco up 1.6%, Reckitt Benckiser gaining 1.3% and Imperial Brands adding 1.2%.
Marks and Spencer advanced 0.9%, while Vodafone, BT, Tesco and Sainsbury gained between 0.8% and 0.9%, reflecting demand for consumer staples, tobacco and telecommunications companies.
The weakness extended across the wider London market, with the FTSE 250 falling 0.3% to 24,136 and the AIM All-Share declining 0.2% to 782.
Shell remained in focus after reporting a record third-quarter refining margin of $42 a barrel, up from $24 in the previous quarter.
7.00 am BST: London set for softer start
The FTSE 100 is expected to open around 23 points lower at 10,519, surrendering part of Tuesday’s 0.4% advance as rising oil prices and renewed pressure on bond markets temper risk appetite.
Wall Street reached fresh records overnight. The S&P 500 gained 0.6%, the Dow Jones rose 0.5% and the Nasdaq added 0.4%, supported by confidence that strong corporate earnings can withstand elevated borrowing and energy costs.
Asian markets failed to follow that lead. Japan’s Nikkei and South Korea’s Kospi fell 0.9%, while Hong Kong’s Hang Seng declined 0.6%. Australia’s ASX 200 bucked the trend with a 0.1% gain. Mainland Chinese markets remained closed for the National Day holiday.
Brent crude climbed 0.9% to $101.49 a barrel and WTI rose to $90.21 as supply concerns returned. Gold slipped towards $4,140 an ounce, while Bitcoin fell 1.1% to around $84,300.
Shell will be in focus after forecasting third-quarter integrated gas production of between 740,000 and 780,000 barrels of oil equivalent a day, up from 631,000 in the second quarter. Its indicative refining margin jumped to $42 a barrel from $24, although marketing earnings are expected to fall and exploration write-offs are forecast at about $300 million.
German industrial production rose 2% in August, comfortably beating expectations for a 0.5% increase. Later, investors will monitor US oil inventories and minutes from the Federal Reserve’s September meeting.
