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FTSE off its worst?
The FTSE 100 is moving up off what could be the morning's low point, where it had lost over 50 points to almost reach 8,300, but is now down 39 points at 8,318.
European markets are mostly in the green, but earlier gains have been pared, with Spain's Ibex having dived into the red and the Euro Stoxx 600 now flat.
In London, BT shares are now dow more than 6%, with Vodafone (LON:VOD) down 2% elsewhere in the sector.
Shell and BP (LON:BP) are also a big drag on the Footsie, down either side of 2%.
Top risers on the UK benchmark this morning are airlines, with easyJet PLC (LON:EZJ) up 1.3% and BA owner IAG (LON:ICAG) up 1.2%.
Market analyst Richard Hunter at Interactive Investor says the airlines have "attracted some attention despite the ongoing conflicts which have tended to disrupt travel in parts during the crucial summer season".
The FTSE 100 is having a "tepid" time this morning amid an "absence of any obvious catalysts... with the main indices struggling for direction after a buoyant few trading sessions," Hunter says.
The London benchmark is now up 7.8% so far this year and just over 1% away from the record high recorded earlier in the year, while the FTSE 250 is up by 7.5% as "the more recent strength in sterling also having some effect on repatriated earnings, particularly for the premier index".
With US markets having largely erased the losses from early August, when recessionary fears sent stocks into a brief tailspin, he says "the latest sense of calm follows some economic data which ticked the boxes both of cooling inflation and a resilient consumer, bringing thoughts of a soft landing back into view".
He adds: "More volatility remains a distinct possibility given lighter trading volumes and therefore less ability to absorb shocks, although this is a week which is relatively free of major corporate or economic releases."
With Asian markets mixed, Hunter notes that while Japan’s Nikkei index rose but China saw an underwhelming reaction to the news that benchmark lending rates would be left unchanged.
"The news represents the latest impasse between investors and the authorities, with the former group still calling for more aggressive stimulus to improve the economic outlook, especially within the real estate and consumer sectors, However, Chinese officials tend famously to take a much longer term view on the general direction of economic prospects, which in turn can often exasperate investors looking for a quicker fix."
Pound is up
The pound has climbed to a month's high against the dollar, up 0.15% to 1.3006.
It was last above $1.30 on 17 July. And before that, it was July 2023 and April 2022.
This is due to shifting rate cut expectations between the Bank of England and US Federal Reserve.
In comments from Deutsche Bank (ETR:DBKGn) earlier it was noted that easing US recession fears have been accompanied by markets dialling back the likelihood of a 50bp rate cut at the Fed’s next meeting, but this might be shifting again this morning.
Over the past five days pound is up 1.2% versus the USD.
Sky and CityFibre confirm deal
CityFibre and Sky have now confirmed their "long-term partnership", where Sky will offer broadband to people on CityFibre’s nationwide full fibre network.
The broadcaster and telecoms company will offer its high-speed broadband on CityFibre’s full-fibre network from next year, the pair said in a statement.
BT falls as Sky does deal with rival
OK, so the reason that shares in BT Group PLC (LSE:LON:BT.A) are down almost 5% is that Sky is reported by the Telegraph to be "poised" to agree a deal to move to a rival broadband network.
The broadcaster and telecoms services provider currently uses BT's Openreach network for its 5.7 million customers, but will reportedly move to the rival CityFibre network next year.
CityFibre is Britain’s largest independent full-fibre broadband network or 'alt net', with 3.2 million ready-for-service (RFS) homes at the start of the year as it attempts to establish itself as a competitor to BT Openreach.
Sweden cuts interest rates
A European central bank has cut interest rates and says two or three more could be coming this year.
Sweden's Riksbank cut its policy rate to 3.5% from 3.75%, as expected.
Policymakers in Stockholm said the policy rate "can be cut two or three more times this year".
At the same time, the spot gold price hit a record high of $2,509.69 per ounce/