Early market roundup: Stocks rise as all eyes on Fed’s Kevin Warsh

Stock prices in Europe were higher on Friday morning with the greenback rising as the focus shifts to Federal Reserve Chair Kevin Warsh, who makes his Jackson Hole bow later.

The FTSE 100 index opened 23.45 points higher, 0.2%, at 10,815.99. The FTSE 250 added 64.81 points, 0.3%, at 24,963.67, and the AIM all-share edged up 0.43 of a point, 0.1%, at 813.54.

The Cboe UK 100 was up 0.2% at 1,075.34, the Cboe UK 250 was up 0.4% at 21,731.23, and the Cboe small companies was down 0.2% at 18,948.51.

The pound bought USD1.3583, down from USD1.3588 at the time of the London equities close on Thursday. Against the euro, it was down at EUR1.1660 against EUR1.1663.

The euro fell to USD1.1643 from USD1.1650. Against the yen, the buck rose to JPY159.46 from JPY159.31.

In New York on Thursday, the Dow Jones Industrial Average added 0.2%, the S&P 500 rose 0.7% and the Nasdaq Composite, turbocharged by an 8.7% surge for Nvidia, rose 1.6%.

XTB analyst Kathleen Brooks commented: “Now that the Tech trade is on a more solid footing, the focus can shift to Jackson Hole, where global central bankers have gathered for the Federal Reserve’s annual conference. The theme of this year’s conference is the effects of technical innovation on global payments systems and on economic policy making. However, from a market perspective, the focus is on Fed chair Kevin Warsh’s speech, which will take place at 1500 BST. The question for investors is whether this speech will be worth waiting for ahead of a UK bank holiday weekend? In the past, Fed governors have used this address to signpost the future direction of monetary policy. Due to this, it has always been a market-moving event, directly impacting the price of bonds, the dollar and gold.

“This speech could focus on bigger issues, such as how he plans to run the world’s most important central bank, and also what changes he will make and when. While not offering direct guidance on the future of interest rates, everything he says will be scrutinised by investors, and changes that he plans to make could still trigger market volatility.”

In Paris, the CAC 40 shot up 0.9%, while Frankfurt’s DAX 40 added 0.6%.

Inflation data on Friday put the European Central Bank under the spotlight. Consumer price inflation accelerated in France and Spain. Data for Germany is out on Monday, before the eurozone reading on Tuesday.

“Strong inflation prints in France and Spain suggest the Eurozone figure, due next week, will accelerate too, strengthening the case for a September ECB hike,” Oxford Economics analyst Paolo Grignani commented.

European Central Bank policymakers believe another interest rate rise is the most likely outcome, unless the inflation picture shifts more favourably, according to minutes from the Frankfurt-based official lender’s most recent meeting.

The minutes, released on Thursday, were for the July meeting which saw the central bank maintain the deposit facility rate at 2.25%, the main refinancing operations rate at 2.40%, and the marginal lending facility rate at 2.65%, in line with market expectations.

According to the minutes, policymakers deemed it important “not to suggest” that the pause meant the tightening cycle has concluded.

What’s more, the minutes read: “While decisions remained data-dependent, another rate hike would likely be necessary unless the inflation outlook improved significantly. On the other hand, communication should stress that the Governing Council was not pre-committed to a hike in September, to allow for the possibility that the medium-term inflation outlook might improve.”

In Tokyo, the Nikkei 225 rose 0.4%. In China, the Shanghai Composite closed 0.1% lower. The Hang Seng Index in Hong Kong was flat, while Sydney’s S&P/ASX 200 added 0.6%.

In London, Goodwin shares shot up 13%. The engineering and refractories company reported record annual profit and said a sales process for its Mechanical Engineering division is progressing well.

Trading profit more than doubled to a record £77.5 million in the year to April 30, from £35.5 million. Goodwin lifted its final dividend to 330 pence from 280p.

It expects to return a “substantial” portion of any disposal proceeds to shareholders.

McBride surged 15%. It has landed a strategic partnership with EH Group BV, or Vestacy, which owns home care brands Air Wick, Calgon, Cillit Bang and Mortein.

The supplier of private label products for household and professional cleaning expects the deal to be “materially earnings accretive”.

“At maturity, the new agreement, when combined with other contracts being signed in parallel, is expected to generate revenues annualising at £170 million during H2 FY28 from volumes at the two acquired sites and from volumes currently produced by a third-party supplier,” it said. “Profit margins are expected to be in line with existing McBride levels, delivering EPS growth consistent with revenue growth.”

The brands were part of Reckitt Benckiser’s Essential Home division, sold to Advent International at the end of last year.

A barrel of Brent fell to USD87.98 on Friday, from USD88.67 late Thursday afternoon. Gold traded at USD4,610.10 an ounce, rising from USD4,597.90. Endeavour Mining and Fresnillo rose 2.3% and 1.9%, among the best FTSE 100 performers, tracking precious metals higher.

US Treasury Secretary Scott Bessent will step up efforts to isolate Iran economically as he hosts G20 counterparts next week, a US official said Thursday, in a gathering clouded by war and trade tensions.

Finance ministers and central bank governors from the group of 20 major economies are due to convene in mountainous Asheville, North Carolina, next Monday and Tuesday.

Their talks are the first of several key ministerial meetings this year, setting the stage for a G20 leaders’ summit US President Donald Trump will host in December in Florida.

In Asheville, US officials will stress to G20 members the importance of complying with its sanctions on Iran, as it ramps up pressure on Tehran amid war in the Middle East, a Treasury official told reporters.

Copyright 2026 Alliance News Ltd. All Rights Reserved.