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By midday on Wednesday, London stocks had edged into negative territory, as market participants awaited results from US chip maker Nvidia (NASDAQ:NVDA).
The FTSE 100 index was down 0.1%, standing at 8,336.60.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, noted that "investors are to some extent in wait-and-see mode ahead of the highly anticipated results from tech giant Nvidia, due later in the day. The chip maker is anticipated to deliver strong performance once again, driven by surging demand for its AI-focused computing platforms. However, much attention will also be on the company’s outlook and guidance, amid uncertainties about the sustainability of its current product demand."
In the equity markets, banks faced pressure due to speculation about a potential windfall tax on the sector. Shares in NatWest (LSE:NWG), Barclays, and Lloyds all declined following a report from the Financial Times, which cited a former senior Whitehall official suggesting that banks might be targeted in the October budget. The official mentioned that such a levy could potentially raise several billions of pounds.
Hochschild Mining, a precious metals producer, experienced a significant drop. Despite the company maintaining its output guidance, operations at its newly opened Mara Rosa mine were slower than expected. The company did report a profit for the first half of the year, benefiting from rising commodity prices, lower costs, and a reduction in impairment charges.
GSK saw gains after the Delaware Supreme Court agreed to review a prior decision allowing expert evidence in the Zantac litigation. This development is a crucial step in the company's defense against claims that the drug may cause cancer.
Prudential reversed its earlier losses, trading higher as it reported progress toward its medium-term profit targets following a solid first half. The company also noted an acceleration in sales momentum since the end of the reporting period. New business profit for the six months ending 30 June was reported at $1.47 billion, marking an 8% increase from the previous year when excluding the effects of interest rates and other economic impacts. Although this figure was lower than the previous year's exceptional growth of 47%, Prudential reaffirmed its target of achieving a compound annual growth rate for new business profit of 15-20% by 2027.
In broker note activity, Direct Line's shares received an upgrade to 'buy' from Citi, which disagreed with the recent decline in the stock price, which had fallen approximately 12% since late May.
Conversely, B&Q owner Kingfisher was downgraded to 'neutral' by the same broker, citing limited potential for near-term improvements. Watches of Switzerland also fell after BNP Paribas Exane downgraded the stock to 'neutral'.
