Wall Street gains as FTSE falls on sterling strength

​​​US markets gain on Apple strength & rate cut hopes

​Wall Street closed higher with the Nasdaq 100 up 1.2% as investors positioned for potential Federal Reserve (Fed) easing. Apple led gains, rising 5.1% after announcing a $100 billion domestic manufacturing pledge aimed at navigating tariff pressures.

​About 80% of S&P 500 companies reporting second-quarter (Q2) results have beaten forecasts. Arista Networks surged 17.5% on strong guidance while McDonald's gained 3% on better-than-expected sales. However, Advanced Micro Devices (AMD) fell 6.4% and Super Micro dropped 18.3% on weak data centre performance.

​Fed fund futures now imply a 95% chance of a September rate cut following weak payroll and services data. Minneapolis Fed President Kashkari suggested the central bank may need to ease policy soon to support economic momentum.

​President Trump imposed a 25% tariff on Indian goods over Russian oil imports while hinting at more semiconductor duties. Markets focused on corporate exemptions rather than penalties, with several major firms pledging US manufacturing investments.

​FTSE 100 opens lower as sterling gains

​The FTSE 100 opened 0.3% lower as sterling extended gains for a fifth consecutive day, trading just below $1.34 ahead of today's expected Bank of England (BoE) rate cut. The pound's strength weighed on US dollar-earning companies including AstraZeneca and Shell.

​Shares in Intercontinental Hotels (ICH) jumped 9.2% after the company reported revenue growth and maintained guidance. Jefferies analysts noted the "incrementally positive" outlook amid an easing macroeconomic picture.

WPP shares hit their lowest level since 2009 despite results broadly in line with expectations. The advertising company has fallen 54% year-to-date, making it the worst-performing FTSE 100 stock.

​Companies reporting earnings included Deliveroo, which sees results at the upper end of guidance, and Serco, which announced a £50 million buyback after strong performance driven by its North American business and defence sector.

​BoE decision follows positive housing data

​Economists unanimously expect the BoE to deliver a fifth rate cut at today's meeting. Halifax house price data showed a 0.4% monthly increase in July, the largest gain this year, with annual growth accelerating to 2.4%.

​The housing market has benefited from lower mortgage rates and improving wage growth, though regional variations persist. London saw the slowest growth at 0.2% while Northern Ireland led with 9.3% annual increases.

​Earnings season highlights sector divergence

​Corporate results continue to show divergent fortunes across sectors. Generic drugmaker Hikma reported higher sales but lower profit, citing product mix changes and euro strength against the dollar.

​Hotel operator IHG reported revenue growth with strength in Europe offsetting weakness in Greater China. The company opened a record number of new rooms and raised its dividend by 10%.

​WPP's struggles contrast with better performance elsewhere in the services sector. The advertising group has cut its 2025 outlook and appointed a new CEO as clients reduce spending amid economic uncertainty.

​BoE decision awaited

​Today's BoE decision will provide guidance on the pace of UK rate cuts, with markets expecting continued easing given housing market support and inflation trends. Fed officials will likely reinforce dovish messaging ahead of September's anticipated cut.

​Tariff developments remain fluid, with markets increasingly focused on corporate responses and exemptions rather than headline announcements. Manufacturing pledges from major US companies suggest negotiated outcomes rather than blanket trade restrictions.