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UK markets swung up, down and back again in a bumpy Wednesday session ahead of comment from the US Fed, finally closing marginally lower.
The US Federal Reserve is due to make its first economic projections since the Covid-19 pandemic set off a recession in February. While the Fed is not expected to change rates, comments by chairman Jerome Powell will be watched closely by investors keen to assess his read on recent economic data, including a surprise improvement in employment figures.
The S&P 500 and Dow eased on Wednesday, as losses in financial stocks outweighed a boost from technology, with focus shifting to the Federal Reserve's first projections on the economy since the coronavirus outbreak
In the UK, the benchmark FTSE 100 ended the session 0.1% off at 6,329.13, with the usual suspects of travel, leisure and engineering leading the FTSE 100 loser board on Wednesday.
But food delivery firm Just Eat Takeaway that led the way down, plunging 13% to £76.26 after confirming takeover talks with rival Grubhub. Investors fear acquisition indigestion given the company's own merger with Dutch firm Takeaway is just weeks old.
British American Tobacco, Rentokil Initial and select non-banking financials provided some counterweight to the market fallers.
POPULAR NAMES MOVING
Fashion retailer Quiz was reeled back in after earlier big gains to close just 3.7% up at 7p on announcing that it had appointed administrators to its physical store portfolio in the UK and Spain, citing Covid-19 lockdowns and shift in shopping habits towards online channels.
Wagamama owner Restaurant Group nudged 0.8% lower to 70p as it confirmed it would close around 125 of its Frankie and Benny's restaurants and seek rent reductions on a remaining 160 sites in its leisure division.
London West End property investor Shaftesbury lost earlier gains to fall 5% to 615p despite swinging to a first-half loss after the value of its properties slumped and the Covid-19 crisis hit rental income from its retail tenants.
Real estate investor LondonMetric Property ceased 0.5% to 212p as it upped its dividend, after a rise in rental income helped boost its underlying earnings.
Specialist lender Paragon Banking ended the day down 5% at 351p even as it reported a 21% fall in first-half profit and scrapped its interim dividend, having been hurt by loan impairments related to the Covid-19 crisis.
SMALLCAP WRAP
Banknote authentication provider Spectra Systems sank 6% to 147.5p on announcing that it had been underbid by a competing company for a five-year Asian central bank contract.
Iron castings and machining group Castings slipped 0.5% to 389p even as it recommended a dividend, while reporting a fall in profit as the Covid-19 pandemic pressured demand in the second half of the year.
Digital performance analytics group XLMedia jumped nearly 7% to 24p, having kicked off a process to sell the majority of its Finnish-facing casino assets, along with certain other publishing sites.
Photo booth and laundry services supplier Photo-Me International dropped close on 4% to 55.2p as it warned of a fall in annual profit owing to a slump in revenue and provisions blamed on the Covid-19 crisis.
Woundcare company Advanced Medical Solutions rose 3% to 260p as it reaffirmed its dividend, even as the Covid-19 impact was denting revenue by as much as 5% a month.