LONDON (ShareCast) - (Sharecast News) - London stocks ended slightly down on Wednesday, with investors showing restraint ahead of crucial earnings from US chipmaker Nvidia.

The FTSE 100 index edged down 0.02% to close at 8,343.85 points, while the FTSE 250 saw a more significant decline, dropping 0.45% to 21,066.87 points.

In currency markets, sterling was last down 0.61% on the dollar to trade at $1.3180, while it made modest gains of 0.04% on the euro, changing hands at €1.1861.

"The key event of the week is nearly upon us - Nvidia's earnings tonight could well set the tone at least until the next payrolls report, and possibly until the Fed decision in September," said IG chief market analyst Chris Beauchamp.

"A miss now would likely spark the next big risk-off move, reversing much of the recent recovery.

"Meanwhile a better set of numbers could give stocks the lift they have been looking for this past week."

Beauchamp added that oil prices had been unable to hold on to gains lately, adding that Tuesday's drop was followed with more declines on Wednesday.

"Traders have been on edge waiting for a renewal of conflict between Iran and Israel, but so far this has failed to materialise, leaving oil bulls with little to cling to."

UK house prices rebound in July

In economic news, UK house prices experienced a rebound in July after a decline in June, according to data from property website Zoopla.

The resurgence was driven by a notable increase in buyer demand and a growing number of homes available for sale.

Zoopla's latest house price index showed a 20% surge in buyer demand and a 23% rise in year-to-date sales, contributing to a 1.4% increase in house prices across Britain for the year so far.

Despite the recovery, the year-on-year growth rate in July was a modest 0.5%, reflecting the impact of declining prices in late 2023.

In terms of supply, Zoopla highlighted that the average estate agent now had 33 unsold homes listed, marking the highest level in seven years.

"Momentum in the sales market continues to build as mortgage rates drift lower and more and more sellers gain the confidence to list their home for sale," said Zoopla director Richard Donnel.

"Buyers have a much greater choice which will support sales numbers, but this will keep prices rises in check."

Banks in the red on windfall tax rumours, GSK rises

On London's equity markets, banks were particularly hard hit amid speculation of a potential windfall tax on the sector.

NatWest Group fell 3.26%, Barclays dropped 2.74%, and Lloyds Banking Group slid 1.72% after the Financial Times reported that a former senior Whitehall official suggested banks could be targeted in the October budget, potentially raising several billion pounds.

Hochschild Mining plummeted 8.35% by the close, despite reiterating its output guidance and swinging into profit for the first half of the year.

Elsewhere, luxury fashion brand Burberry Group also faced pressure, falling 2.17%, amid expectations of a potential demotion from the FTSE 100 index.

Prudential closed down 0.72% after a volatile session, despite announcing an acceleration in sales momentum and reaffirming its medium-term profit targets.

On the upside, GSK rose 2.07% after it announced that the Delaware Supreme Court would review a decision allowing expert evidence in the Zantac litigation, a positive development in its defence against cancer-related claims.

In broker-related moves, Direct Line Insurance Group gained 1.56% following an upgrade to 'buy' by Citi, which countered recent pessimism that has seen the share price drop about 12% since May.

Conversely, B&Q owner Kingfisher declined 1.22% after a downgrade to 'neutral' by the same outfit, which cited limited potential for near-term growth.

Watches of Switzerland Group fell 3.52% following a downgrade to 'neutral' by BNP Paribas Exane.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,343.85 -0.02%
FTSE 250 (MCX) 21,066.87 -0.45%
techMARK (TASX) 4,895.78 0.31%

FTSE 100 - Risers

Coca-Cola HBC AG (CDI) (CCH) 2,826.00p 3.06%
BAE Systems (BA.) 1,348.00p 2.12%
GSK (GSK) 1,651.50p 2.07%
United Utilities Group (UU.) 1,015.50p 1.79%
Aviva (AV.) 505.20p 1.45%
Reckitt Benckiser Group (RKT) 4,402.00p 1.24%
Rolls-Royce Holdings (RR.) 500.20p 1.21%
Weir Group (WEIR) 1,949.00p 1.14%
National Grid (NG.) 1,004.50p 1.14%
Experian (EXPN) 3,657.00p 1.11%

FTSE 100 - Fallers

Antofagasta (ANTO) 1,796.50p -5.97%
JD Sports Fashion (JD.) 137.30p -4.05%
NATWEST GROUP (NWG) 338.00p -3.26%
Barclays (BARC) 223.90p -2.74%
Entain (ENT) 630.80p -2.68%
Whitbread (WTB) 2,832.00p -2.28%
Burberry Group (BRBY) 672.60p -2.17%
easyJet (EZJ) 469.10p -2.03%
Anglo American (AAL) 2,235.00p -1.93%
Flutter Entertainment (DI) (FLTR) 15,635.00p -1.79%

FTSE 250 - Risers

Genus (GNS) 1,796.00p 5.40%
Trustpilot Group (TRST) 205.00p 4.06%
PureTech Health (PRTC) 169.60p 2.79%
Chemring Group (CHG) 407.50p 1.75%
Direct Line Insurance Group (DLG) 189.00p 1.66%
Tate & Lyle (TATE) 676.50p 1.65%
RS Group (RS1) 772.50p 1.57%
Energean (ENOG) 973.00p 1.51%
PPHE Hotel Group Ltd (PPH) 1,365.00p 1.49%
Elementis (ELM) 164.00p 1.49%

FTSE 250 - Fallers

Hochschild Mining (HOC) 177.80p -8.35%
RHI Magnesita N.V. (DI) (RHIM) 3,300.00p -6.25%
OSB Group (OSB) 373.60p -3.96%
Ocado Group (OCDO) 341.00p -3.83%
Watches of Switzerland Group (WOSG) 392.20p -3.52%
Close Brothers Group (CBG) 487.60p -3.06%
Endeavour Mining (EDV) 1,591.00p -2.87%
HGCapital Trust (HGT) 517.00p -2.82%
BlackRock World Mining Trust (BRWM) 528.00p -2.77%
Fidelity China Special Situations (FCSS) 175.40p -2.66%

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