London stocks nudged lower in early trade on Thursday as investors mulled disappointing earnings from US software company Oracle and the latest policy announcement from the Federal Reserve, which cut rates as expected but signalled a long pause ahead.
At 0825 GMT, the FTSE 100 was down 0.1% at 9,643.14.

On Wednesday, as it its final meeting of the year, the Federal Open Market Committee voted 9-3 in favour of a rate cut, with the Federal Funds Rate being trimmed by 25 basis points to a range of 3.5% to 3.75%.

The decision was in line with analysts' expectations and similar to moves made in September and October, marking the sixth rate cut since September 2024 to bring borrowing costs to their lowest since 2022.

However, the scope of the dissent among policymakers was stark, with Austan Goolsbee and Jeff Schmid voting for no change to rates, while Trump-appointed Stephen Miran called for a 50bp reduction. This was the first time since 2019 that three FOMC members dissented.

Investors were also mulling second-quarter numbers from Oracle, whose shares tumbled in after-hours trading.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: "The FTSE 100 opened lower this morning, mirroring a cautious global tone. The Fed trimmed rates as expected but signalled a long pause ahead, tempering optimism. Meanwhile, the AI narrative took a hit after Oracle's softer results reminded investors that not every tech story is bulletproof.

"The US Fed delivered the widely expected 25bp cut, with nine members in favour, two preferring no change, and Steven Miran once again pushing for a bolder 50bp move. More eye-catching was the announcement of $40 billion in Treasury purchases starting almost immediately - a move that pundits are dubbing 'QE light.'

"Inflation remains stubborn, while job data holds steady, though policymakers have flagged employment as a growing concern. The decision makers have just one cut pencilled in for next year, but markets are still clinging to hopes for two."

In equity markets, Entain fell as it said chief financial officer Rob Wood, who is also deputy chief executive, was set to step down after 13 years with the gambling and gaming group. Wood, who will leave in March 2026, is being replaced by Michael Snape, chief financial officer at International Distribution Services.

NCC Group tumbled as it said it expects to return to growth this year after it reported a small decline in both revenues and profits over the 12 months to 30 September.

Primark owner Associated British Foods and Zigup fell as they traded without entitlement to the dividend.

On the upside, Drax rallied after the power generator said it expected full-year earnings to be at the top end of consensus estimates and said it could convert existing infrastructure at its North Yorkshire plant to run a data centre as soon as 2027.

Firstgroup gained as the transport operator said it has bought the UK sightseeing bus operations of RATP Developpement for about £17m as part of an effort to grow and diversify its First Bus business in two key markets.

Market Movers

FTSE 100 (UKX) 9,643.14 -0.13%
FTSE 250 (MCX) 21,796.30 -0.16%
techMARK (TASX) 5,540.61 -0.33%

FTSE 100 - Risers

Smurfit Westrock (DI) (SWR) 2,779.00p 3.08%
Weir Group (WEIR) 2,940.00p 1.52%
Convatec Group (CTEC) 229.20p 1.42%
Ashtead Group (AHT) 4,838.00p 1.11%
Diageo (DGE) 1,619.50p 1.09%
Mondi (MNDI) 875.20p 1.09%
Burberry Group (BRBY) 1,207.00p 1.05%
Legal & General Group (LGEN) 244.40p 0.95%
Sainsbury (J) (SBRY) 320.00p 0.95%
International Consolidated Airlines Group SA (CDI) (IAG) 388.70p 0.80%

FTSE 100 - Fallers

Entain (ENT) 743.20p -2.18%
Associated British Foods (ABF) 2,088.00p -1.97%
Fresnillo (FRES) 2,730.00p -1.59%
Lloyds Banking Group (LLOY) 93.42p -1.50%
Severn Trent (SVT) 2,674.00p -1.36%
Unilever (ULVR) 4,767.00p -1.10%
NATWEST GROUP (NWG) 613.40p -0.97%
British American Tobacco (BATS) 4,359.00p -0.91%
United Utilities Group (UU.) 1,165.00p -0.85%
National Grid (NG.) 1,107.50p -0.85%

FTSE 250 - Risers

Empiric Student Property (ESP) 77.00p 4.19%
RS Group (RS1) 629.50p 3.96%
Edinburgh Worldwide Inv Trust (EWI) 221.00p 3.51%
Drax Group (DRX) 785.50p 3.22%
W.A.G Payment Solutions (EWG) 97.00p 2.54%
THG (THG) 46.00p 1.59%
Foresight Solar Fund Limited (FSFL) 63.40p 1.44%
ITV (ITV) 83.50p 1.40%
Fidelity China Special Situations (FCSS) 309.50p 0.98%
C&C Group (CDI) (CCR) 126.60p 0.80%

FTSE 250 - Fallers

NCC Group (NCC) 129.00p -7.73%
Ocado Group (OCDO) 221.80p -5.62%
Travis Perkins (TPK) 585.00p -3.62%
Wizz Air Holdings (WIZZ) 1,045.00p -3.24%
Investec (INVP) 515.00p -3.10%
Zigup (ZIG) 384.00p -2.78%
Diversified Energy Company (DI) (DEC) 1,140.00p -2.56%
Sirius Real Estate Ltd. (SRE) 91.40p -2.56%
AJ Bell (AJB) 470.00p -2.45%
Victrex plc (VCT) 635.00p -2.16%