London open: FTSE dips as investors eye comments from Fed officials
By Michele Maatouk
Date: Thursday 25 Sep 2025
(Sharecast News) - London stocks dipped in early trade on Thursday as investors eyed speeches by Federal Reserve officials later in the day.
At 0900 BST, the FTSE 100 was down 0.2% at 9,233.53.
Patrick Munnelly at Tickmill Group said: "Global stock markets appear to be hitting a pause as investors grapple with concerns over high valuations, this comes in the wake of a surge that has seen markets rise relentlessly recently.
"Wall Street recorded its second consecutive day of losses, offering little inspiration for Asian markets, where stocks largely moved within narrow ranges. Bucking the trend, Chinese blue-chip stocks surged, fuelled by their alignment with the global wave of AI-driven investments. Asian stocks have soared 9% this quarter, with Japan's Nikkei surging an impressive 13%, sparking speculation about potential month-end or quarter-end rebalancing flows.
"Adding to the markets more cautious tone is the stance adopted by several Federal Reserve officials on the timing of rate cuts. Futures now point to a 92% chance of a Fed rate cut in October, though expectations for total easing have scaled back to 100 basis points from 125 basis points just weeks ago.
"San Francisco Fed President Mary Daly, mirroring the views of her colleagues, acknowledged the need for further rate cuts but stressed uncertainty surrounding their timing. Investors are eagerly awaiting more clarity, as key Fed officials, including New York President John Williams, are set to speak later today, potentially offering fresh insights into the board's dovish outlook amid President Donald Trump's relentless scrutiny."
In equity markets, Babcock International fell even as it reaffirmed its full-year outlook after an "encouraging" start to the year. Updating on trading, the company organic revenue growth and underlying operating margin progress had both been in line with expectations in the five months to August end.
Pub group Mitchells & Butlers slid as it held annual guidance on the back of a 4.2% rise in like-for-like sales in the year to date despite weaker trade within Greater London and its premium businesses.
Eurowag lost ground after TA Associates Management sold 61 million shares in the company in a placing. The shares, which represented a stake of around 8.8%, were sold at 92p each.
Phoenix, Endeavour Mining and Drax all fell as they traded without entitlement to the dividend.
On the upside, shares in Petershill Partners rocketed after the investment firm said it plans to delist from the London stock market after concluding it was undervalued as a public company.
SSP shot higher following a report that activist hedge fund Irenic Capital Management is trying to drum up interest in a take-private deal for the Upper Crust owner after lifting its stake.
According to the Financial Times, the New York-based hedge fund is encouraging private equity groups to launch takeover bids for SSP.
The fund has shared materials about the merits of a leveraged buyout with investment bankers and private capital firms in recent weeks, according to a pitch deck seen by the Financial Times.
Safety equipment group Halma gained as it said year-to-date trading has remained in line with expectations, leading it to reiterate full-year guidance despite mixed regional performance and ongoing macroeconomic uncertainty.
Market Movers
FTSE 100 (UKX) 9,233.53 -0.18%
FTSE 250 (MCX) 21,653.81 -0.17%
techMARK (TASX) 5,418.29 -0.08%
FTSE 100 - Risers
JD Sports Fashion (JD.) 90.62p 3.05%
Halma (HLMA) 3,432.00p 2.82%
Rio Tinto (RIO) 4,847.50p 2.10%
Entain (ENT) 890.80p 1.92%
Burberry Group (BRBY) 1,137.00p 1.20%
Anglo American (AAL) 2,700.00p 1.09%
British American Tobacco (BATS) 3,937.00p 1.08%
Diageo (DGE) 1,788.00p 0.90%
Glencore (GLEN) 333.20p 0.89%
Airtel Africa (AAF) 228.00p 0.88%
FTSE 100 - Fallers
Convatec Group (CTEC) 221.80p -5.38%
Phoenix Group Holdings (PHNX) 628.50p -4.56%
Babcock International Group (BAB) 1,201.00p -2.36%
CRH (CDI) (CRH) 8,254.00p -2.23%
Antofagasta (ANTO) 2,589.00p -2.01%
3i Group (III) 3,804.00p -1.73%
Smurfit Westrock (DI) (SWR) 3,212.00p -1.62%
ICG (ICG) 2,212.00p -1.51%
Schroders (SDR) 370.60p -1.49%
Fresnillo (FRES) 2,268.00p -1.48%
FTSE 250 - Risers
Petershill Partners (PHLL) 307.50p 33.12%
SSP Group (SSPG) 167.80p 7.50%
Playtech (PTEC) 373.50p 4.18%
Renishaw (RSW) 3,700.00p 2.49%
Computacenter (CCC) 2,562.00p 2.40%
Future (FUTR) 690.50p 2.30%
Aston Martin Lagonda Global Holdings (AML) 81.85p 1.87%
Ocado Group (OCDO) 234.90p 1.64%
Caledonia Investments (CLDN) 377.50p 1.62%
Raspberry PI Holdings (RPI) 435.60p 1.16%
FTSE 250 - Fallers
Mitchells & Butlers (MAB) 243.00p -7.78%
W.A.G Payment Solutions (EWG) 94.20p -3.88%
Endeavour Mining (EDV) 3,004.00p -2.72%
BioPharma Credit (BPCR) 0.89p -2.63%
Kier Group (KIE) 207.00p -2.59%
Lion Finance Group (BGEO) 7,460.00p -2.16%
Hochschild Mining (HOC) 337.20p -1.86%
Anglo-Eastern Plantations (AEP) 1,330.00p -1.85%
Investec (INVP) 565.00p -1.74%
Morgan Sindall Group (MGNS) 4,285.00p -1.72%
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