London open: FTSE nudges lower; SSP jumps on review

(Sharecast News) - London stocks nudged lower in early trade on Thursday as investors mulled results from the likes of SSP and AJ Bell, amid rising expectations of a US rate cut next week. At 0845 GMT, the FTSE 100 was down 0.1% at 9,682.01.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said investors are leaning into the idea that easier policy is coming.

"Still, with inflation data and Fed decisions ahead, the path is far from set in stone," he said.

"Expectations have swung wildly over the past month, so assuming any cuts are a done deal could be a costly mistake, and volatility can just as quickly return if the rate cutting narrative shifts. One thing's clear, if markets want a Santa rally, they need the Fed to stay in line."

In equity markets, Upper Crust owner SSP surged after saying it was confident it could deliver towards the upper end of earnings per share expectations. The company also announced that it was initiating a wide-ranging review of its Continental European Rail business.

Media group Future shot higher as it reported a drop in full-year revenue and profit but announced a five-fold increase to the dividend to 17p a share and a new £30m share buyback programme.

Bodycote was boosted by an upgrade to 'overweight' at Barclays.

Watches of Switzerland ticked up as it reiterated its full-year guidance after a strong first half, with revenue and profit higher thanks to "robust" growth in the US.

Infrastructure group Balfour Beatty rose after saying it was on track to meet full-year expectations as it pointed to strong cash and order book growth.

On the downside, Baltic Classifieds tumbled after it said in its half-year results that with lower revenue growth and continued investment into its product, some EBITDA margin compression was inevitable. JPMorgan said that statement was likely to "drive continued negative sentiment in the classifieds sub-sector".

AJ Bell fell even as the investment platform announced a share buyback of up to £50m as it hailed a record full-year performance, with "excellent" growth in customer numbers.

Retailer Frasers Group dipped as it held annual guidance despite a fall in half-year profit amid weak consumer confidence and excess inventory which continued to weigh on the sector, leading to heavy discounting.