Source: Sharecast
The FTSE 100 was up 0.1% at 9,154.43.
Russ Mould, investment director at AJ Bell, said: "Animal spirits are definitely in charge of the market right now, as investors embrace the potential for the Fed to cut interest rates in the wake of what was seen as a soft inflation reading in the US.
"The US central bank still remains in cautious mode, waiting to observe if tariffs stoke a pick-up in prices for US consumers. While that might be a prudent approach, the longer tariffs don’t show up in the inflation data, the greater the pressure grows on Jerome Powell and the interest rate committee to cut rates.
"While there are only tentative signs of tariffs showing up in US consumer prices, they may be more of a subtle, slow burn which aren’t immediately apparent in the headline rate right now. Trump thinks foreign exporters will take the hit rather than passing tariffs onto US consumers. Only time will tell whether he’s right about that, but it’s at least plausible that companies might accept lower profit margins only temporarily, especially while there is so much tariff uncertainty. Policymakers and consumers outside the US might also take note there is nothing stopping global companies from seeking to defray the cost of tariffs by ultimately raising prices outside the US, as well as within it."
US Treasury Secretary Scott Bessent said in an interview with Fox Business on Tuesday that the Fed should be open to a 50 basis point rate cut next month.
In equity markets, construction and infrastructure products group Hill & Smith surged as it announced a £100m share buyback programme after reporting strong cash generation and a double-digit increase in underlying profits in the first half.
Quilter was also in the black after an upgrade to ‘buy’ from ‘hold’ by Berenberg, which cited an improved outlook for the business.
Genuit - formerly Polypipe - rallied as RBC Capital Markets upgraded the stock to ‘outperform’ from ‘sector perform’, saying the company was geared for growth.
On the downside, specialist insurer Beazley tumbled as it posted a drop in first-half profit and cut its full-year premium growth guidance.
Housebuilder Persimmon fell after saying it still expects to deliver between 11,000 and 11,500 completions for the full year despite challenging market conditions and the prospect of tax rises in October’s Budget.
Infrastructure group Balfour Beatty lost ground even as it backed its full-year expectations, reporting an increase in first-half profit as strength in the UK construction business offset US weakness.
Outside the FTSE 350, discount shoe retailer Shoe Zone tanked after halving its full-year profit guidance and cancelling its dividend.
Market Movers
FTSE 100 (UKX) 9,154.43 0.07%
FTSE 250 (MCX) 21,896.11 0.24%
techMARK (TASX) 5,255.41 0.57%
FTSE 100 - Risers
AstraZeneca (AZN) 11,282.00p 1.77%
Spirax Group (SPX) 6,955.00p 1.61%
Fresnillo (FRES) 1,761.00p 1.50%
Antofagasta (ANTO) 2,108.00p 1.44%
Airtel Africa (AAF) 221.40p 1.37%
BAE Systems (BA.) 1,750.50p 1.30%
Associated British Foods (ABF) 2,301.00p 1.28%
Berkeley Group Holdings (The) (BKG) 3,814.00p 1.27%
International Consolidated Airlines Group SA (CDI) (IAG) 390.00p 1.22%
Smurfit Westrock (DI) (SWR) 3,282.00p 1.11%
FTSE 100 - Fallers
Beazley (BEZ) 813.50p -10.80%
Persimmon (PSN) 1,106.00p -2.60%
Entain (ENT) 903.20p -1.61%
BP (BP.) 417.25p -1.60%
Bunzl (BNZL) 2,234.00p -1.59%
Hiscox Limited (DI) (HSX) 1,313.00p -1.50%
Diageo (DGE) 2,033.00p -1.41%
Standard Chartered (STAN) 1,406.00p -1.33%
British American Tobacco (BATS) 4,236.00p -1.21%
London Stock Exchange Group (LSEG) 9,268.00p -1.19%
FTSE 250 - Risers
Hill and Smith (HILS) 2,185.00p 11.03%
Spire Healthcare Group (SPI) 226.00p 5.61%
Sirius Real Estate Ltd. (SRE) 102.60p 2.29%
Oxford Nanopore Technologies (ONT) 216.40p 2.27%
Quilter (QLT) 166.60p 2.21%
B&M European Value Retail S.A. (DI) (BME) 228.00p 2.20%
Fidelity China Special Situations (FCSS) 292.00p 1.92%
Senior (SNR) 202.00p 1.81%
Hochschild Mining (HOC) 306.00p 1.80%
Genuit Group (GEN) 376.00p 1.76%
FTSE 250 - Fallers
Watches of Switzerland Group (WOSG) 330.40p -3.50%
Diversified Energy Company (DEC) 1,108.00p -2.81%
Close Brothers Group (CBG) 532.00p -2.56%
Pagegroup (PAGE) 261.40p -2.17%
Playtech (PTEC) 425.00p -1.85%
Energean (ENOG) 907.50p -1.84%
Lancashire Holdings Limited (LRE) 610.00p -1.77%
Hays (HAS) 61.80p -1.67%
Balfour Beatty (BBY) 559.50p -1.58%
Primary Health Properties (PHP) 93.50p -1.42%