Wall Street’s main benchmarks opened broadly flat today as investors held back from making any sudden moves until after the publication of minutes from the Fed’s latest Federal Open Market Committee meeting.
The blue-chip S&P 500 edged 0.07 per cent higher to 4,450.73 points, while the Dow Jones inched down 0.07 per cent to 35,321.59 points.
The tech-heavy Nasdaq gained 0.1 per cent to reach 14,671.56 points.
Jeffrey Halley, senior market analyst, Asia Pacific at OANDA, said: “Investors will be eyeing the nut and bolts of the FOMC Minutes later this evening for signs that a majority of members are swinging behind a taper sooner rather than later.”
Yields on 10-year Treasuries hovered near 1.27 per cent this morning,
Lower than expected UK inflation clip fails to lift FTSE 100
A lower than expected UK inflation clip failed to push the FTSE 100 higher this afternoon.
The capital’s premier index edged down 0.47 per cent to 7,147.44 points during early afternoon exchanges. The fall built on yesterday’s losses to feed into a very weak first half of the week for the blue-chip index.
Figures from the Office for National Statistics show consumer prices index inflation pared back on an annual basis last month, falling to two per cent in July from 2.5 per cent in June.
The lower-than-expected rate of price rises suggests the Bank of England may adopt a more dovish position to winding down its ultra-loose monetary policy position, with the Old Lady unlikely to bring forward a rate rise or curbs to its bond buying programme.
Danni Hewson, financial analyst art AJ Bell, said: “Two percent. What a lovely round number.
“A number that appears to give members of the Bank of England’s MPC a great deal of wiggle room.”
The mid-cap FTSE 250 rose 0.37 per cent to 23,780.27 points on the news, while AIM shares gained 0.4 per cent to hit 1,263.93 points.
The pound gained ground on the dollar, strengthening 0.17 per cent to $1.3764
Winners and losers
Miners led the afternoon’s losses on the FTSE 100. BHP dipped 6.19 per cent to 2,212p, triggered by the firm announcing it will de-list from the London Stock Exchange. The company’s stock has now wiped out all the gains it registered on the opening day of the week.
Luxury fashion retailer Burberry was the second worst performer out of all the blue-chips, sinking 4.07 per cent to 1,957p, while miner Anglo American slipped 2.58 per cent to 3,223p.
Investors continued to buoyed by soaring orders at Just Eat Takeaway.com. The food delivery service company led the day, climbing 5.06 per cent to 6,629p.
Pharmaceuticals giant AstraZeneca came second, climbing 1.46 per cent to 8,710p.
Middle class favourite Ocado was the third best performer in the afternoon, adding 1.44 per cent to reach. 1,871.50p.