FTSE 100 Ends Flat Ahead of US Fed Rate Decision and Earnings from Tech Giants.

The FTSE 100 index closed flat on Wednesday, despite progress elsewhere, as investors awaited the US Federal Reserve's interest rate decision and earnings from tech giants Meta Platforms and Microsoft. The Fed is expected to maintain rates at 4.25%-4.50%. The US economy grew 3.0% in Q2, but the figure is seen as overstating the strength of the economy.

The FTSE 100 index closed flat on Wednesday, reflecting investor caution ahead of the US Federal Reserve's interest rate decision and earnings reports from tech giants Meta Platforms and Microsoft. The FTSE 100 index ended the day at 9,136.94, while the FTSE 250 closed 16.49 points lower at 21,776.58, and the AIM All-Share closed down 3.03 points at 762.72 [1].

The Cboe UK 100 ended down 0.1% at 912.22, the Cboe UK 250 fell 0.1% to 19,101.84, and the Cboe Small Companies closed down 1.4% at 17,439.90. In Europe, the CAC 40 in Paris rose 0.2%, and the DAX 40 in Frankfurt also gained 0.2%. In New York, the Dow Jones Industrial Average was down 0.1%, the S&P 500 was 0.1% higher, and the Nasdaq Composite rose 0.3% [1].

The US Federal Reserve is expected to maintain rates in the 4.25%-4.50% range during its meeting scheduled for 1900 BST. The Fed has held rates steady in each of its first four meetings this year, with its last cut occurring in December [1].

The US economy expanded by 3.0% quarter-on-quarter on an annualized basis in the second quarter, according to the Bureau of Labor Statistics. However, the figure is seen as overstating the strength of the economy, with TD Economics noting that the increase in real GDP primarily reflected a decrease in imports [1].

US President Donald Trump has called for an interest rate cut, citing the rosier economic growth figures. The pound eased to USD1.3285 late on Wednesday afternoon, while the euro traded at USD1.1479 and the dollar was trading higher at JPY148.94 against the yen [1].

The yield on the US 10-year Treasury was at 4.37%, and the yield on the US 30-year Treasury was at 4.91%. In London, GSK climbed 4.8% after reporting strong earnings, while HSBC slumped 5.0% due to a decrease in profits [1].

The FTSE 100's biggest risers were GSK, up 65.50 pence at 1,462.50p, and AstraZeneca, up 340.00p at 11,498.00p. The biggest fallers were Taylor Wimpey, down 6.70p at 100.45p, and HSBC, down 44.00p at 926.00p [1].

Thursday's local corporate calendar includes half-year results from miner Anglo American, tobacco manufacturer BAT, gold miner Endeavour Mining, consumer products firm Haleon, stock exchange operator and data provider London Stock Exchange, aerospace company Rolls-Royce, and oil major Shell. Retailer Next is also set to update on trading [1].

The global economic calendar on Thursday sees an interest rate decision in Japan overnight, plus retail sales, industrial production, and consumer confidence figures in Japan, and US weekly initial jobless claims and the Chicago PMI [1].

References:
[1] https://www.marketscreener.com/news/ftse-100-ends-flat-ahead-of-likely-fed-rate-hold-ce7c5fdfde80f02c