Earnings Reports and Interest Rate Moves Jolt London Markets

On Thursday, London-listed stocks experienced a slowdown as investors took a breather following a recent rally and turned their attention to corporate earnings from major players like WPP, Standard Chartered, and Shell. The FTSE 100 remained flat, ending a streak of eight consecutive gains, while the FTSE 250 faced a 0.77% drop, marking its steepest decline in two weeks.

The FTSE 100 reached record highs earlier this week, buoyed by positive results from heavyweights such as HSBC and GSK. Mid-cap stocks had similarly reached a high point. Expectations were also high regarding an anticipated interest rate cut by the U.S. Federal Reserve. On Wednesday, the Fed lowered borrowing costs by 25 basis points, but suggested that this might be the final rate cut for the year.

"We are likely witnessing profit taking after achieving all-time high levels," commented Ipek Ozkardeskaya, a senior market analyst at Swissquote Bank. Earnings in the UK are gaining momentum, yet WPP experienced a significant fall, dropping 16% after CEO Cindy Rose issued a profit warning. In contrast, Standard Chartered and Shell posted promising results, with Standard Chartered particularly gaining 3.6% on better-than-expected earnings.