London's financial markets experienced a day of mixed fortunes on Thursday, with the FTSE 100 index managing a modest gain while the FTSE 250 declined, as investors globally digested the US Federal Reserve's latest monetary policy decision and a fresh outburst of criticism from former President Donald Trump.
Trump's Scathing Attack on Fed Chair Powell
In a post on his Truth Social platform, Donald Trump launched a vehement attack on Federal Reserve Chair Jerome Powell, labelling him a "moron" and criticising the central bank's decision to maintain interest rates. "Jerome 'Too Late' Powell again refused to cut interest rates, even though he has absolutely no reason to keep them so high," Trump wrote, demanding immediate and substantial rate reductions. This intervention came after the Fed's Wednesday vote, which saw a 10-2 decision to keep the benchmark lending rate unchanged.
London Market Performance
The FTSE 100 index closed up 17.33 points, or 0.2%, at 10,171.76, demonstrating resilience amid the transatlantic tensions. However, the FTSE 250 ended down 122.19 points, or 0.5%, at 23,268.44, and the AIM all-share index closed down 7.17 points, or 0.9%, at 824.92, indicating broader pressure on mid-cap and smaller companies.
Notable Movers on UK Indices
On the FTSE 250, Mecca bingo owner Rank Group, based in Maidenhead, Berkshire, saw its shares dip 1.0%. The company reported a pre-tax profit of £23.9 million for the six months to December 31, a 19% decrease year-on-year, though revenue rose 4.5% to £420.0 million. Rank declared an interim dividend per share of 1.00 pence, a 54% increase from 0.65p, and maintained its full-year expectations.
On AIM, Ashtead Technology fell 0.4%, influenced by weaker results from US peer United Rentals, which reported quarterly sales slightly below analyst estimates. Meanwhile, International Paper Co dropped 8.3% in London following its announcement to split into two separate companies for North America and EMEA regions, and reporting a substantial net loss for 2025 due to acquisition costs.
European and US Market Context
European equities showed divergence, with the CAC 40 in Paris closing up 0.1%, while the DAX 40 in Frankfurt ended down 2.1%. In the US, stocks were lower: the Dow Jones Industrial Average fell 0.3%, the S&P 500 dropped 1.0%, and the Nasdaq Composite declined 2.0%. Tech giant Microsoft plunged 12% despite better-than-expected quarterly results, due to weaknesses in its More Personal Computing division, whereas Meta Platforms surged 7.8% on strong advertising revenue and optimistic guidance.
Currency and Commodity Movements
The pound strengthened to 1.3797 US dollars at the London close, up from 1.3778 dollars on Wednesday. The euro also rose to 1.1950 dollars from 1.1935 dollars. Against the Japanese yen, the dollar weakened to 152.87 yen from 153.63 yen. In commodities, Brent crude oil increased to $69.40 a barrel from $68.01, while gold edged lower to $5,256.30 an ounce from $5,282.35.
Key Gainers and Losers on the FTSE 100
The biggest risers on the FTSE 100 included 3i Group, Anglo American, Metlen Energy & Metals, Diageo, and Rio Tinto. Conversely, the largest fallers were Ashtead Group, Sage, Autotrader, Relx, and Fresnillo, reflecting sector-specific pressures and broader market sentiment.
Looking Ahead: Economic and Corporate Calendar
Friday's economic calendar features GDP figures from France and Germany, with Germany also releasing CPI, unemployment, and trade data. The US will publish PPI data, and the UK is set to report mortgage approvals. On the corporate front, Airtel Africa is scheduled to release its third-quarter results, providing further insights into market dynamics.
This mixed trading session underscores the ongoing sensitivity of global markets to central bank policies and political commentary, with London's benchmarks navigating a complex landscape of corporate earnings, currency fluctuations, and international economic indicators.
