Nvidia earnings in focus as FTSE 100 falls

Nvidia reports after market close on Wednesday with options traders pricing in a $260 billion swing in its market value, as its shares gained 1.1% on Tuesday ahead of results. In London, the FTSE 100 closed 0.6% lower, dragged by heavy losses in Wickes, Kingfisher and AB Foods after Deutsche Bank downgrades, while Bunzl rose 5.1% after resuming a buyback. The dollar strengthened to ¥147.9 and $1.345 against sterling, while spot gold slipped to $3,377 per ounce and Brent crude steadied at $67.13 a barrel after falling more than 2% on Tuesday.

Equities

Britain’s FTSE 100 closed 0.6% lower on Tuesday, breaking a five-day winning streak. Losses were concentrated in banks and healthcare stocks, each sector down 0.9%. Retailers were under particular pressure after Deutsche Bank downgraded several names. Wickes closed down 8.6% at the bottom of the FTSE 250 after its rating was cut to “sell” from “hold”, while Kingfisher fell 4.4% after a downgrade to “hold”.

Primark owner Associated British Foods slipped 4% after the broker cut its rating to “sell”. British American Tobacco dropped 1.9% after the company said its finance chief, Soraya Benchikh, would step down with immediate effect. Offsetting some of the weakness, Bunzl rose 5.1% after resuming a share buyback programme and reiterating its 2025 forecast, while precious metal miners gained 1.9% in line with higher gold prices.

In the United States, the S&P 500 ended Tuesday up 0.41% at 6,465.94 points, just below its record high earlier this month. The Nasdaq rose 0.44% to 21,544.27 and the Dow Jones Industrial Average gained 0.30% to 45,418.07. Nvidia rose 1.1% ahead of its quarterly results due after market close on Wednesday. Advanced Micro Devices gained 2% after Truist Securities upgraded the shares to “buy” from “hold”.

Eli Lilly climbed nearly 6% after announcing that its experimental diabetes pill cut patient body weight by 10.5% in trials, reinforcing its position in a fiercely competitive sector. EchoStar surged 70% to a record high after AT&T agreed to purchase wireless spectrum licences from the satellite communications firm for about $23 billion.

Forex & Commodities

The dollar edged higher on Wednesday but gains were limited as investors weighed political uncertainty around the Federal Reserve. President Donald Trump said late on Monday that he would remove Fed Governor Lisa Cook over alleged improprieties, prompting her lawyers to confirm that legal action would be taken to block the move. The dollar rose against the yen to ¥147.9 in Wednesday trading, while the euro slipped to $1.161. Sterling was also weaker at $1.345. The dollar index moved up to 98.47.

Gold prices softened mid-morning on Wednesday as the stronger dollar weighed on demand, with spot bullion down 0.5% at $3,377 per ounce after touching its highest level since mid-August a day earlier.

Oil prices steadied after falling more than 2% on Tuesday. Brent crude was last down 9 cents at $67.13 per barrel and West Texas Intermediate eased 8 cents to $63.17. The weakness followed fresh US tariffs on Indian imports, which rose to as much as 50% on Wednesday, targeting New Delhi’s continued purchases of Russian crude. While some Indian refiners initially paused imports, Indian Oil and Bharat Petroleum have resumed buying for September and October, limiting the impact of the sanctions.