Source: Sharecast
At 0835 BST, the FTSE 100 was up 0.1% at 9,223.72.
Richard Hunter, head of markets at Interactive Investor, said: "US investors have run into a brick wall over recent days, with the validity of the drives to fresh record highs having been brought into question.
"There have undoubtedly been signs of weakness in the labour market which have led to expectations of further interest rate cuts being ratcheted up. However, the latest jobless claims number was solid in that the decline was more than expected. In addition, GDP growth was revised up to 3.8% from a previous 3.3% for the second quarter, with consumer spending and business investment providing a strong base.
"This show of economic strength could in turn lower the need for further cuts from the Fed, which would remove a major plank of the bull case. Sentiment was also hampered by the White House announcing a new raft of tariff measures which, all things being equal, will be inflationary and to the detriment of consumers as prices rise.
"As such, the release of the personal consumption expenditures index later, the Fed’s preferred measure of inflation, will take on added significance. A rise of 0.3% for August is expected, annualised to 2.7%, and any upward surprises will equate to downward pressure on share prices as the likelihood of cuts lessens."
Market participants were also digesting a fresh tariff announcement from Donald Trump, who said on Thursday that the US will impose 100% tariffs on imported branded drugs. There will also be 25% tariffs on imports of heavy-duty trucks and 50% tariffs on kitchen cabinets.
AstraZeneca barely nudged lower in the wake of the announcement, while GSK ticked higher.
Kathleen Brooks, research director at XTB, said AstraZeneca could be better placed than some of its European rivals, due to promised extra investment in the US that has already been announced, and the President’s promise to treat the UK differently when it comes to pharma tariffs.
"Thus, the FTSE 100 could be a relative ‘safe haven’ in the middle of this latest tariff storm," she said.
With little in the way of corporate news, broker notes were having an impact.
InterContinental Hotels shot to the top of the FTSE 100 after an upgrade to ‘overweight’ at JPMorgan, while Croda gained after an upgrade to ‘overweight’ by Barclays.
Elsewhere, Pennon Group fell after saying it remained on track to return to profitability, despite the hot summer weather ramping up costs.
Updating on trading, the owner of South West Water said there had been particularly high demand for clean water during the hotter-than-usual summer months.
That had been more than offset in revenues, however, by increased meter optants and the profiling of tariffs to smooth customer bills, deferring revenue into 2026/27.
Market Movers
FTSE 100 (UKX) 9,223.72 0.11%
FTSE 250 (MCX) 21,618.96 0.14%
techMARK (TASX) 5,382.31 -0.22%
FTSE 100 - Risers
InterContinental Hotels Group (IHG) 8,980.00p 2.35%
Convatec Group (CTEC) 224.40p 1.45%
Rentokil Initial (RTO) 364.70p 1.31%
Weir Group (WEIR) 2,670.00p 1.21%
Shell (SHEL) 2,730.50p 1.17%
Beazley (BEZ) 870.50p 1.16%
International Consolidated Airlines Group SA (CDI) (IAG) 386.50p 1.13%
Kingfisher (KGF) 296.00p 1.09%
Croda International (CRDA) 2,692.00p 1.05%
Hikma Pharmaceuticals (HIK) 1,608.00p 1.01%
FTSE 100 - Fallers
Rio Tinto (RIO) 4,855.00p -1.24%
Metlen Energy & Metals (MTLN) 47.42p -0.99%
United Utilities Group (UU.) 1,108.00p -0.85%
London Stock Exchange Group (LSEG) 8,166.00p -0.83%
Standard Chartered (STAN) 1,414.00p -0.81%
Diageo (DGE) 1,752.50p -0.76%
British American Tobacco (BATS) 3,906.00p -0.71%
Bunzl (BNZL) 2,344.00p -0.68%
Spirax Group (SPX) 6,830.00p -0.65%
Rightmove (RMV) 701.00p -0.62%
FTSE 250 - Risers
Discoverie Group (DSCV) 623.00p 4.88%
Mitchells & Butlers (MAB) 246.50p 2.28%
Edinburgh Worldwide Inv Trust (EWI) 206.00p 1.98%
Ocado Group (OCDO) 235.10p 1.91%
Vistry Group (VTY) 628.80p 1.78%
Caledonia Investments (CLDN) 377.50p 1.62%
Breedon Group (BREE) 352.20p 1.27%
Wizz Air Holdings (WIZZ) 1,192.00p 1.19%
Barr (A.G.) (BAG) 681.00p 1.04%
Edinburgh Inv Trust (EDIN) 790.00p 1.02%
FTSE 250 - Fallers
Oxford Instruments (OXIG) 1,836.00p -3.06%
W.A.G Payment Solutions (EWG) 94.00p -2.08%
Pennon Group (PNN) 446.00p -1.68%
Syncona Limited NPV (SYNC) 97.00p -1.52%
Raspberry PI Holdings (RPI) 406.00p -1.46%
Ashoka India Equity Investment Trust (AIE) 261.50p -1.13%
Pacific Horizon Inv Trust (PHI) 729.00p -1.09%
Baltic Classifieds Group (BCG) 294.50p -1.01%
Templeton Emerging Markets Inv Trust (TEM) 216.00p -0.92%
Endeavour Mining (EDV) 3,034.00p -0.78%