London markets slip to loss ahead of central bank meetings
The FTSE 100 moved 0.03%, or 2.12 points, lower to finish at 7,542.77.
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Your support makes all the difference.London stocks closed a touch lower after early positive trading faded on Tuesday afternoon.
Sentiment became increasingly cautious as traders looked ahead to this week’s key interest rate votes, from both the Federal Reserve and the Bank of England.
In London, weakness for investment and telecoms was largely offset by upgrades for the likes of Rolls-Royce and Royal Mail owner International Distribution Services.
The FTSE 100 moved 0.03%, or 2.12 points, lower to finish at 7,542.77.
Elsewhere in Europe, trading on the other key markets was also subdued.
The Dax index was 0.03% higher for the day at the close and the Cac 40 closed down 0.06%.
Michael Hewson, chief market analyst at CMC Markets UK, said: “European markets started the day positively with marginal new record highs for the Dax and Cac 40, while the FTSE 100 briefly poked its head above 7,600 before retreating, with today’s US inflation numbers unable to provide any further upside impetus ahead of Wednesday’s Fed meeting.”
Axel Rudolph, senior market analyst at IG, said: “All eyes are on the next couple of days’ central bank meetings at which rates are expected to remain on hold as central bankers access their economies for further clues as to which monetary policy to pursue.
“Slowing UK wage growth might help to move the Bank of England away from its still hawkish rhetoric but its voting members will keep a look out for Wednesday’s industrial and manufacturing production numbers as well as UK GDP.”
Sterling underperformed relative to its peers on Tuesday as the latest UK labour market data showed a slowdown in wage growth.
The pound was down O.05% at 1.254 US dollars and was 0.25% lower at 1.163 euros at market close in London.
In company news, Hargreaves Lansdown and AJ Bell dropped in value after the City regulator wrote to investment firms over concerns about the way that interest earned on customers’ cash balances is dealt with.
The Financial Conduct Authority (FCA) warned the sector that it will step in if firms cannot demonstrate they are offering fair value and do not make the necessary changes.
As a result, Hargreaves Lansdown saw shares fall 51p to 714.2p, while AJ Bell was down 10.6p at 301p on Tuesday.
Shares in FRP Advisory were in the green after the restructuring and corporate finance firm upgraded its revenue and earnings forecasts for the year.
The firm said it has seen increased demand for its advice business, while restructurings have also risen year-on-year amid the challenging economic backdrop.
FRP shares finished 7p higher at 135p.
Smartspace Software saw its shares rocket higher after it confirmed Australian technology firm Skedda tabled a potential takeover approach for the company.
The firm, which is listed on the junior Aim index, closed 38p higher at 71.5p after it was valued at around £25 million.
Elsewhere, the price of a barrel of Brent crude fell by 3.64% to 73.26 US dollars (£58.38) as markets were closing in London.
The biggest risers on the FTSE 100 were Rolls-Royce, up 7.8p to 304.7p, Rightmove, up 13.2p to 594.8p, IAG, up 3.2p to 159.2p, Legal & General, up 4.4p to 244.7p, and Pershing Square, up 58p to 3,318p.
The biggest fallers on the FTSE 100 were Hargreaves Lansdown, down 51p to 714.2p, Anglo American, down 93p to 1,696p, BT, down 5.15p to 126.2p, Fresnillo, down 15.2p to 560.8p, and DS Smith, down 7.6p to 295.4p.