London close: Stocks slip ahead of Nvidia earnings
By Josh White
Date: Wednesday 27 Aug 2025
(Sharecast News) - London stocks slipped on Wednesday as investors awaited quarterly results from US technology giant Nvidia, due after the closing bell on Wall Street.
"The future direction of markets will be determined by Nvidia's results tonight," said Russ Mould, investment director at AJ Bell.
"A lot is riding on these figures given how the chip company is such a dominant name in the US stock market and a popular investor holding globally.
"Any sign of a slowdown in AI demand could see its share price pull back, and that could drag down the entire market."
The FTSE 100 index fell 0.11% to close at 9,255.5 points, while the FTSE 250 declined 0.26% to 21,805.03 points.
"A small rally on Wall Street last night set the tone for a calmer session in Europe on Wednesday," Mould noted, adding that "Trump's latest meddling with the Federal Reserve had threatened to cast a dark cloud over global markets, yet investors didn't enter the panic zone."
In currency markets, sterling was last down 0.22% on the dollar to trade at $1.3451, while it firmed 0.22% against the euro, changing hands at €1.1603.
Patrick Munnelly at TickMill said Nvidia's earnings were also dominating sentiment in Asia, noting that "tech stocks in Asia advanced ahead of Nvidia's earnings report, with investors eager to hear the company's insights on chip demand to determine if the global market surge that began in April would continue."
UK producer price inflation accelerates, retail sales fall further
In economic news, UK producer price inflation rose to its highest level in more than two years in June, adding to concerns about mounting inflationary pressures.
Interim data from the Office for National Statistics showed factory gate prices up 1.9% year-on-year, the sharpest rise since May 2023 and up from 1.3% in May and a revised 0.7% in April.
The ONS said it planned to resume full monthly releases of its price indices in October after suspending them earlier this year to address errors in historical data, noting that "development work is progressing well" on rebuilding its processing systems.
Retail sales in the UK meanwhile fell for an eleventh consecutive month in August as weak demand, higher labour costs, and low confidence continued to weigh on the sector, according to the Confederation of British Industry.
The retail sales balance was -32%, slightly better than July's -34%, with the outlook for September suggesting a slower pace of decline.
"Retailers endured another tough month in August," said CBI principal economist Martin Sartorius, warning that falling sales and rising costs were forcing businesses to scale back investment and hiring plans.
On the continent, German consumer sentiment deteriorated for a third straight month, with the forward-looking GfK climate index dropping to -23.6 for September from -21.7 in August, its lowest reading since April.
GfK said "the geopolitical situation and the US government's tariff policy are fuelling fears" of rising energy prices, while growing job security concerns pushed the income expectations indicator down 11.1 points to 4.1.
"With the third consecutive decline, consumer sentiment is now definitely in the summer slump," said Rolf Bürkl of the Nuremberg Institute for Market Decisions, noting that caution over major purchases was likely to persist into year-end.
Across the Atlantic, US mortgage applications slipped 0.5% in the week ended 22 August, extending the previous week's 1.4% decline.
A one basis point rise in the 30-year mortgage rate and steady Treasury yields weighed on refinancing activity, which fell 3.5%, even as applications to purchase a home rose 2.2%.
The MBA said refinancing volumes remained subdued amid limited incentive to reprice existing debt.
JD Sports in the green, Prudential falls despite reporting growth
On London's equity markets, JD Sports Fashion was in the green, gaining 3.55% after the retailer said full-year 2026 pre-tax profits were expected to meet market expectations despite a fall in group sales in the six months to 2 August.
"A small improvement in North America and Asia Pacific like-for-like sales on a quarterly basis suggests JD Sports is still match-fit," said Mould.
"However, deterioration in the UK and Europe means its performance is still considerably short of the athletic prowess portrayed in its product marketing.
"Certain investors might have been expecting the worst so a 'steady-as-she-goes' update is considered a win."
The company also unveiled a £100m share buyback programme, while Mould cautioned that "it is clear JD is walking a tightrope and it wouldn't take much to knock it off course," particularly given new tariffs and shifting consumer spending habits.
On the downside, Prudential fell 1.7%, reversing earlier gains despite reporting double-digit growth across its key metrics in the first half and unveiling plans for share buybacks over the next two years.
Rio Tinto reversed earlier gains to close down 0.15%, after the miner announced it would simplify its product group structure into three core businesses covering iron ore, aluminium and lithium, and copper.
Hochschild Mining slumped 12.79% after cutting its full-year production target, citing weather and contractor issues at its Mara Rosa project.
The company said it now expected to produce 291,000 to 319,000 gold equivalent ounces, down sharply from its previous forecast of 350,000 to 378,000 ounces.
Associated British Foods and Kingfisher lost 1.49% and 1.08%, respectively, extending declines from Tuesday after Deutsche Bank downgraded both stocks in a research note.
Reporting by Josh White for Sharecast.com.
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