In London, the FTSE 100 Index ended up 27.57 points, 0.3%, at 10,722.07.
asserted
Index → end → 10,722.07
The FTSE 250 ended 34.90 points higher, 0.1%, at 24,674.16, and the AIM all-share advanced 2.53 points, 0.3%, at 763.45.
asserted
AIM → end → 763.45
The central bank maintained its deposit facility rate at 2.50%, the main refinancing operations rate at 2.65% and the marginal lending facility rate at 2.90%, as it warned that rising energy prices could push inflation higher while weighing on economic growth.
uncertain
prices → maintain → growth
Ms Lagarde, who has led the central bank since November 2019, informed the Governing Council and European Council president Antonio Costa of her decision, setting the stage for a leadership contest at a critical time for eurozone monetary policy.
asserted
who → lead → policy
JPMorgan analyst Greg Fuzesi observed: “The decision was expected by financial markets with the expectation that an interest rate hike will follow in December.”
He noted that Ms Lagarde said, however, that there was a debate about hiking at Thursday’s meeting and that the ECB “could” have hiked given the data.
“She also said that barring surprises, ‘the direction of travel is clear to all of us’.
uncertain
direction → observe → us
A hike in December therefore remains very likely and we continue to expect at least one further hike after that, most likely in March,” Mr Fuzesi said.
asserted
Fuzesi → remain → March
Against the dollar, the euro firmed to 1.1162 dollars on Thursday from 1.1148 dollars on Wednesday.
asserted
euro → firm → Wednesday
Against the yen, the dollar was trading at 157.85 yen, down from 158.23 yen.
asserted
dollar → trade → yen
The pound was quoted at 1.3369 dollars, up from 1.3310 dollars.
asserted
pound → quote → dollars
Against the euro, sterling climbed to 1.1977 euros from 1.1941 euros.
asserted
sterling → climb → euros
The Dow Jones Industrial Average was down 0.3% at the time of the closing bell in London on Thursday.
asserted
Average → close → Thursday
The S&P 500 was also 0.3% lower and the Nasdaq Composite slid 1.3%.
asserted
Composite → slide → ?
The US central bank also left interest rates on hold on Wednesday, despite accelerating inflation.
asserted
bank → leave → inflation
At the press conference following the announcement, Federal Reserve chairman Kevin Warsh reaffirmed his determination to ensure price stability as he looked to justify leaving interest rates unchanged despite the backdrop of accelerating inflation.
asserted
he → follow → inflation
Mr Warsh told reporters it was the “right policy decision for this moment” and that the US central bank “will deliver price stability, no ifs, no buts”.
asserted
bank → tell → stability
Eric Winograd, chief US economist at AllianceBernstein, said he was “struck” again by the gap between Mr Warsh’s “very strong rhetoric” about fighting inflation and the committee’s decision to delay action.
asserted
he → say → action
“My perception is that Chair Warsh prefers not to raise rates if he can avoid it.
asserted
he → prefer → it
If the data force his hand he will do so, but the bar to a hike seems higher for him than the bar to a hold,” he added.
asserted
he → force → hold
Morgan Stanley expects two more 25 basis point hikes in December and March, bringing the terminal range to 4.25%-4.5%.
asserted
Stanley → expect → %
“The Fed’s measured approach, tightening financial conditions, and Chair Warsh’s emphasis on productivity-led growth suggest less need for aggressive tightening,” Morgan Stanley analysts said.
asserted
analysts → tighten → tightening
The pressure on the US central bank was reflected in figures on Thursday which showed the personal consumption expenditures (PCE) price index rose 3.6% in September, accelerating from 3.4% in August and meeting the FXStreet cited forecast.
asserted
index → reflect → forecast
The core reading, which excludes food and energy, is the Federal Reserve’s preferred inflationary measure.
asserted
which → exclude → food
The core PCE price index picked up 3.1% on-year in September, quickening from 3.0% in August and also in line with the market forecast.
asserted
index → pick → forecast
On Wall Street, Google owner Alphabet slumped 12% after poorly received earnings.
asserted
Alphabet → slump → earnings
David Morrison, at Trade Nation, said Alphabet’s falls came as “investors clocked a sharp drop in free cash flow, along with a slowdown in Google’s search engine growth”.
asserted
investors → say → growth
The latter raised concerns that alternative AI large language models were “increasingly eating” into Google’s search engine dominance.
asserted
models → raise → dominance
“Both earnings per share and revenues came in below expectations, something that hasn’t happened in close to four years,” Mr Morrison noted.
asserted
Morrison → come → years
The yield on the US 10-year Treasury was quoted at 5.00%, trimmed from 5.03%.
asserted
yield → quote → %
The yield on the US 30-year Treasury was quoted at 5.33%, unchanged from Wednesday.
asserted
yield → quote → Wednesday
Also supporting equity markets was an easing in oil prices amid a renewed diplomatic push to bring the US and Iran back to the negotiating table.
asserted
easing → support → table
US vice president JD Vance has contacted Iran’s security chief in a bid to revive peace talks that could head off a renewed American assault on the Islamic Republic, the Wall Street Journal reported on Wednesday.
uncertain
Journal → contact → Wednesday
Brent was quoted at 113.75 dollars a barrel, down from 116.37 dollars at the same time on Wednesday.
asserted
Brent → quote → Wednesday
In London, WPP rose 5.4% as it reiterated its annual guidance following a third-quarter performance in line with expectations, as the company continued implementing its Elevate28 strategic turnaround plan.
asserted
company → rise → plan
The London-based advertising and marketing services group said revenue for the three months to September 30 rose 0.5% to £3.27 billion from £3.26 billion a year earlier.
asserted
revenue → base → billion
Revenue less pass-through costs fell 2.0% on a reported basis to £2.41 billion from £2.46 billion.
asserted
Revenue → pass → billion
Shell gained 2.1%, despite the lower oil price, as it reported better-than-expected third-quarter results and increased the size of quarterly share buybacks.
asserted
it → gain → buybacks
Adjusted earnings rose to 10.81 billion dollars from 5.43 billion dollars a year ago, beating 10.33 billion dollars consensus compiled for Shell by Vara.
asserted
earnings → rise → Vara
This was supported by higher refining margins, higher realised liquefied natural gas prices and higher integrated gas volumes, partly offset by lower crude and oil products trading and optimisation, higher well write-offs and lower realised liquids prices.
asserted
This → support → trading
Analysts at RBC Capital Markets commented that Shell’s “underlying earnings and cash flow performance highlight a business that is extremely well suited to take advantage of the current disruptions in the energy complex, across oil, products and gas”.
asserted
that → comment → oil
Elsewhere, Haleon slumped 15% as it lowered full-year revenue guidance after a weaker-than-expected third quarter.
asserted
it → slump → quarter
…and 5 more, not listed.
The Aporia
