- FTSE 100 up 13 points at 7,930
- Co-op Bank to cut 400 jobs
- Trump Media rallies in US debut
16:45pm: FTSE 100 closes higher
The FTSE 100 has closed 13.39 points higher at 7,930.96.
16.01pm: UK economy to grow quicker than anticipated, S&P Global says
The UK economy could enjoy more rapid growth over the coming years than economists have predicted, according to rating agency S&P Global.
As inflation subsides throughout this year, S&P noted that interest rates would likely be cut by the summer, paving the way for an uptick in consumer spending on the back of a resilient jobs market.
The economy could grow by 0.3% this year, stretching to 1.4% in 2025 and then 1.7% through both 2026 and 2027, the firm forecast in an economic outlook.
“Monetary policy will likely start easing in August as inflation cools, with rate cuts this year and next spurring investment and potentially adding about 2 percentage points to economic activity, albeit most of the impact will come in 2026 and 2027,” S&P said.
S&P’s forecast compares to Bank of England anticipations in February that the economy would grow by 0.25% this year, 0.75% next and 1% in 2026.
3.40pm: Chocolate prices to surge as cocoa passes copper
Cocoa now costs more per tonne than copper, parents can tell their children when they hand over a smaller Easter egg this weekend.
Futures prices for cocoa today bubbled up above $10,000 per tonne for the first time, following a 130% increase so far this year - more than Nvidia's 95% gain.
The main ingredient in chocolate started the year at below $4,3000 per tonne, but has surged on the back of a dry harvest in key growing areas in West Africa.
"Chocolate is the new luxury good in town," XTB analyst Kathleen Brooks commented.
"We expect that sweet treats will see their prices surge in response to this massive price rise"... Read more
3.31pm: Ofgem's price cap to blame for lack of competition - industry
A consultation on Ofgem’s price cap is much needed and should highlight that the system is partially at blame for a lack of competition among suppliers, industry insiders have said.
Regulator Ofgem announced a consultation on the price cap, which determines how much suppliers can charge per unit of energy, on Monday.
This could pave the way for a dynamic system to be introduced, whereby energy prices vary based on the time of day or on factors such as vulnerability, Ofgem said.
The consultation comes after a jump in energy prices on the back of the Ukraine war has left suppliers largely using the cap as a guide price, rather than the absolute limit originally intended.
Indeed, “almost three years on from the start of the energy crisis, we’re yet to see a full return to competition in the market,” Uswitch director Richard Neudegg commented.
“The price cap must bear some of the blame,” he said. “We support Ofgem’s view that the price cap needs reform, given it has proved to have significant limitations.”
2.43pm: US markets open higher
The Nasdaq had added 79 points to reach 16,463 shortly after Tuesday’s opening bell, while the Dow Jones and S&P 500 added 53 and 16 points respectively.
Grabbing headlines was an over 45% surge in Trump Media & Technology Group Corp stock as the former president’s firm debuted on the New York Stock Exchange.
This took the firm’s market capitalisation to US$9.84 billion (£7.79 billion) and prompted a brief halt to trading shortly after the shares listed following Tump Media’s merger with blank-check company Digital World Acquisition Corp on Monday.
Donald Trump’s stake in the business, which owns Truth Social, was last valued at US$5.72 billion.
“This valuation may be more of a proxy on the enthusiasm of supporters for Trump than a reasonable estimate of underlying business prospects,” Great Hill Capital chair Thomas Hayes noted.
Among other companies, Tesla Inc (NASDAQ:TSLA, ETR:TL0) emerged as a big riser with gains of 5.5%.
This followed reports it was working with CATL to develop fast-charging battery cells and that Cathie Wood's Ark Invest funds bought over 163,000 shares of the stock on Monday, worth around US$28.2 million.
2.00pm: Kingfisher tops risers for second day running
B&Q owner Kingfisher PLC (LSE:KGF) topped the FTSE 100’s risers with gains of 4% come Tuesday afternoon, aided by a share price target upgrade from Deutsche Bank.
Following the retailer’s annual results on Monday, Deutsche hiked Kingfisher’s share price target from 225p to 245p, which would see it climb 2.25% on Monday’s close.
“In our view, investor sentiment on the stock remains negative with short interest approaching around 10%,” Deutsche acknowledged.
However, “in combination with the management focus on free cash flow, many boxes are being ticked for an attractive value stock,” the bank added.
Kingfisher had unveiled cautious guidance for the year ahead, citing a lag between housing demand and home improvement demand.
This followed a 22.3% drop in statutory pre-tax profit to £475 million over last year.
“The biggest question remains one of catalyst timing in our view,” Deutsche continued, especially with regards to Kingfisher’s French business.
Kingfisher noted a plan was underway to simplify the French business though, aimed at growing profitability ahead.
“We appreciate the more detailed guidance given by management,” Deutsche added, setting its pre-tax profit forecast for the year ahead at £500 million.
Though the bank maintained a ‘hold’ rating on Kingfisher, analysts said “we can see a much more balanced risk and reward at this stage”.
1.34pm: Irn-Bru maker soars as sales jump
Irn-Bru maker AG Barr PLC (LSE:BAG) gained 6% on Tuesday after unveiling a one-quarter jump in sales over the last year and laid down optimism for the coming months.
Revenue climbed 25.9% to £400 million over the year to January, the drink maker said, with the figure climbing 8% on a like-for-like basis.
Adjusted pre-tax profits rose ahead of industry expectations by 16.1% to £50.5 million on the back of this.
Outgoing chief executive Roger White signalled that reduced cost pressures on both the industry and consumers would likely bode well over the coming year, meanwhile.
“The outlook is certainly more settled from a price and cost point of view,” he said, with the FTSE 250-listed firm climbing just over 6% to 544.88p on the news.
1.19pm: Ocado, Waitrose boost customers, branded goods resurge
More on this morning's Kantar data and Ocado Group PLC (LSE:OCDO) and Waitrose were the only two grocery retailers to boost customer numbers over the first quarter as inflation eased.
Ocado enjoyed a 9.5% jump in sales over the three months to March, ahead of the wider online market growth of 6.6%.
John Lewis Partnership-owned Waitrose saw sales climb by 3.9% over the period meanwhile, against overall market growth of 4.6%.
“[Ocado] was the only grocer other than Waitrose to boost its number of shoppers in the latest three months,” Kantar reported, with both outdoing discounter Aldi’s 3.1% increase in sales.
This came as grocery price inflation subsided to a two-year low of 4.5% in March, compared to 5.3% in February and 17% a year ago.
Ocado and Waitrose's gains coincided with a resurgence of demand for branded and, in particular, premium own-labelled goods in the four weeks to March 17, as per the report.
Branded goods sales were up 6.1%, against 4.7% growth of own-label products. Premium own-branded goods saw sales jump by 16.1% in the meantime.
12.48pm: Bitcoin bulls back in action
Bitcoin (BTC) bulls are back in the driving seat after a period of sell-side dominance.
The benchmark cryptocurrency added 4% against the US dollar yesterday after a solid weekend trading session, with further gains this morning.
At the time of writing, the BTC/USD pair was swapping for $71,000.
Though still a few thousand dollars below the all-time high two weeks ago, it’s a step up from bitcoin’s post-ATH plummet to the low-60k range.
As shown by Farside Investors’ tracker, bitcoin exchange-traded funds broke their five-day outflow streak to add $15.4 million yesterday.
These ETFs, which were approved in January, have been a major source of bitcoin bullishness in 2024, so a return to form has galvanised the buy-side market.
Year-to-date inflows across the whole bitcoin ETH market are currently around $11.3 billion.
12.10pm: US markets seen higher
Futures trading had the Nasdaq up 91 points at 18,605 ahead of Tuesday’s opening bell, signalling a return to rallies for the markets seen last week.
The Dow Jones was called 85 points higher at 39,784 in the meantime, with the S&P 500 up 19 points at 5,297.
This follows a dip by the three indices on Monday, which looked to bring an abrupt end to last week’s strong gains, driven by the Federal Reserve’s decision to hold interest rates, but guidance that three cuts could still be expected this year.
That said, Scope Markets analyst Joshua Mahony noted a return to growth could come as markets await core durable goods orders data later on Tuesday.
“Coming off the back of a concerning 16-month low of -0.4%, another consecutive decline could help highlight a need for the Federal Reserve to take a more dovish tone despite concerns around driving prices down,” he said.
Richmond Fed’s manufacturing survey will also be released on Tuesday, delving into the health of the sector, alongside March’s consumer confidence data.
11.44am: Number of retail investors backing UK stocks at annual high
Four in five UK-based retail investors now hold London-listed stocks in their portfolios, research revealed on Tuesday, representing the highest level in a year.
This meant the number investing in UK companies was up 10% between the fourth and first quarters, eToro said, based on a survey of 1,000 retail investors.
“The UK stock market has been out in the cold for several years but our latest survey suggests that sentiment around the FTSE could finally be gathering steam,” eToro strategist Ben Laidler commented.
A key factor in the jump is optimism that the Bank of England could begin cutting base interest this year, as per the trading platform.
“Some predict [this] could trigger a so-called market rotation away from big tech stocks and the US market, toward cheaper markets and more rate-sensitive economies,” it said.
The UK market’s “stellar dividend performance” is likely also benefiting the market, Laidler added.
“Although it's been hard to look past the recent performance of big tech stocks and the Magnificent 7, one in five UK investors believe the time has come to shift focus, with many recognising the value of dividends, as savings rates start to dwindle.”
11.27am: FTSE 100 returns to red
The FTSE 100 yo-yoed between loss and gain-making territory come late morning on Tuesday, coming to rest just in the red at 7,917.
Among the day’s biggest risers were retailers, led by Ocado Group PLC (LSE:OCDO) after its food retail partnership with M&S maintained annual guidance following a 10.6% rise in first-quarter revenue.
“This is no mean feat considering their competition ranges from established supermarket giants and heavy discounters alike,” eToro analyst Adam Vettese commented.
“Ocado now needs to stay on this trajectory, keep narrowing their losses and winning more market share on their road to profit.”
Ocado was up 8.2% at 489.80p on the news, while Marks & Spencer Group PLC gained 1.7% to reach 258.53p.
Engineer Smiths Group (LSE:SMIN) PLC gained 3.4% in the meantime, after reporting improved interim profits, unveiling a £100 million buyback and announcing insider Roland Carter as chief executive.
Auto Trader PLC led the fallers meanwhile, dipping 4% on the back of news JP Morgan had placed it on ‘negative catalyst watch’ ahead of May’s full-year results.
11.00am: Papa John's to close 43 UK sites
Papa John's has unveiled plans to shut 43 of its restaurants in the UK, following a review at the start of this year.
“Underperforming” sites will close by mid-May following consultations, with these now having been identified, the pizza chain said on Tuesday.
Papa John's, which is listed in the US, operates 450 UK restaurants, with the closing sites said to be “no longer financially viable”.
“Our priority is our team members, who will be fully supported throughout this process,” UK managing director Chris Phylactou commented.
“Our goal is to work with impacted team members and attempt to find redeployment opportunities where available.”
10.10am: Grocery price inflation subsides to two-year low
Supermarket prices increased at their slowest rate in two years over the course of March, at 4.5%.
As reported by Kantar, this was the smallest increase seen since February 2022, while the figure also marked a hefty drop from February’s 5.3%.
Branded goods sales outdid those of own-labelled products, according to the market researcher, while demand for premium own-branded goods rocketed.
“Grocery inflation has come down significantly since hitting an eye-watering peak of 17% in March 2023,” Kantar consumer insight head Fraser McKevitt commented.
“However, despite this continued slowdown, many British households are still feeling the squeeze.”
10.00am: Co-operative Bank to cut one in 10 jobs
The Co-operative Bank has unveiled plans to slash approximately 400 roles, equating to one in 10 of its workforce.
A consultation will be carried out over the restructuring, which will cut 12% of staff, the bank said, in an attempt to reduce costs.
“Today, we have announced a series of changes across the bank which are essential for the delivery of the next phase of the strategic plan,” a statement read.
“These include the commencement of a consultation on a proposed operating model restructure.
“The decision has not been made lightly, and the bank will continue to work closely with our trade union and to support impacted colleagues.”
9.36am: Revolution Bars sinks as sale, restructuring explored
Revolution Bars Group PLC plummeted almost 50% on Tuesday morning after confirming strategic options, such as a restructuring or sale, were being explored to improve its health.
Responding to reports that plans were being drawn up which could include job cuts, Revolution said ways were being looked to to improve the group’s prospects.
This includes sales of all or part of the group, a restructuring and emergency fundraising, including potentially from former Pizza Express chairman Luke Johnson.
“It’s not a major surprise to see the company confirm speculation it is looking to raise emergency cash and slash its workforce,” AJ Bell’s Russ Mould said, citing Covid and inflationary pressures.
“The share price reaction suggests the market is expecting a discounted and highly dilutive fundraising.”
Shares fell 47% to 1.52p.
9.14am: US overtakes UK as Fevertree's biggest market
Fevertree Drinks (AIM:FEVR) PLC has said the US is now its largest revenue-generating region after 2023 saw growth stall in the UK.
Overall revenue for the year climbed 6% to £364.4 million, the group reported in full-year results, with a 22% increase to £117 million in the US coinciding with a 1% contraction to £114.8 million in the UK.
“2023 was a year when the Fever-Tree brand once again grew in breadth and depth, with market share gains across the globe,” chief executive Tim Warrillow commented.
“Perhaps the most significant milestone was establishing the US as our largest region, and with it, extending our market leadership position in both the tonic water and ginger beer categories.”
Gross profit slipped by 2% to £177 million, Fevertree added, as gross margins narrowed from 34.5% to 32.1%.
8.57am: The morning so far
It was a morning of gaming results, with Paddy Power owner Flutter Entertainment PLC (LSE:FLTR) and William Hill owner 888 Holdings PLC (LSE:888) posting their annual results.
The former was well received for its solid US growth, where adjusting earnings flipped into the positive for the first time in the company’s history.
Though firm-wide losses increased due to some impairment charges, shares were flung 2.2% higher in opening trades.
888’s results were less bullish, though the group is showing signs of improvement.
It penned a post-tax loss of £56 million, a marked improvement from more than £120 million worth of losses in 2022. Losses per share came to 12.6p. Shares remained unbudged at 840.
Ocado Group PLC (LSE:OCDO)'s share price was up 3% after it said its food retail partnership with Marks & Spencer had maintained its annual guidance while reporting a 10.6% rise in first-quarter revenue, boosted by an increase in customer numbers.
Looking ahead, the tone was optimistic with the retailer projecting "mid-high single digits per cent" revenue growth for the full year.
A trading update from ASOS PLC (LSE:ASC) showed sales in the six months to 3 March were down 18%, though this was hardly unexpected, given a resurgence in high street shopping and ongoing cost of living pressures.
The market, however, may have been expecting worse- ASOS shares were up 4% in opening trades.
The FTSE 100 was trading 10 points lower at 7,907 at last read.
8.40am: William Hill owner 888’s share flat after earnings
888 Holdings PLC (LSE:888)’s shares were unbudged after the William Hill owner posted its full-year results this morning.
Revenues increased by 38% year on year to £1.7 billion, while adjusted earnings saw a 41% increase to £308 million.
Post-tax losses, while improving, were still more than £56 million, meaning losses per share came to 12.6p.
Chief executive Per Widerström struck an optimistic tone: “Having joined the company in October 2023, my conviction in the significant opportunity for the Group is stronger than ever...We have acted with pace, decisiveness, and urgency to build a clear strategy to deliver success.”
Looking ahead, first-quarter revenues are expected to be in the range of £420-430 million. 888 cut its coming-year guidance for the year ahead in a January trading update.
The FTSE 100 is currently 12 points lower at 7,905.
8.12am: Flutter hails positive US earnings
Paddy Power owner Flutter Entertainment saw global revenues grow by 24.6% year-on-year to $11.79 billion (£9.3 billion) in 2023, although net losses widened to $1.21 billion from $370 million in the previous year.
The US business saw sales surge by 40.7%, with FanDuel maintaining the top position in the sportsbook and iGaming markets. FanDuel acquired over 3.7 million new sports betting and iGaming players in 2023, 19% more than the prior year.
For the first time ever, Flutter posted positive adjusted earnings in the US, albeit only $65 million, boding well for Flutter's recent US listing.
“I was proud to see Flutter shares trading for the first time on the NYSE on January 29, 2024 and we have been encouraged by the increased focus from new US investors as a result of our US listing,” said chief executive Peter Jackson.
Flutter shares added 1.8% in opening Tuesday exchanges, while the FTSE 100 was down 20 points.
7.52am: Ocado Retail increases market share
Ocado Retail’s volumes grew 8.1% year on year in the first quarter, leading to revenues growing 10.6% to £645.3 million.
According to today’s trading statement, Ocado Retail, which is a joint venue between Ocado and M&S, had an online market share of 13.5% in the period, up from 12.8% in first-quarter 2023.
Average orders per week, active customer count and average basket value all saw upward trajectory.
Revenue growth guidance for the year remains in the mid-to-high single digits.
“Our strategy is resonating with customers and volume growth is building well. There's still so much more we can do and I'm looking forward to raising the bar even further in 2024,” said chief executive Hannah Gibson.
7.27am: ASOS’ revenues plummet
A trading update from ASOS PLC (LSE:ASC) is unlikely to resuscitate the online retailer’s flailing share price when markets open today.
Sales in the six months to 3 March were down 18%, though this was hardly unexpected, given a resurgence in high street shopping and ongoing cost of living pressures.
ASOS is at pains to clear aged stock and reduce inventory before transitioning to a new operating model in 2025, the group stated in the update.
Chief executive José Antonio Ramos Calamonte said: "ASOS is becoming a faster and more agile business, aided by the incredible work of our teams to speed up all of our processes to deliver the fashion, quality and prices that our customers want, when they want it.
“I'm excited by the performance of our new collections, while we have also made great progress in monetising inventory that built up over the pandemic and in improving the core profitability of our operations.”
Full-year guidance remained unchanged.
7.10am: Blue chips to fall
The FTSE 100 index is expected to fall around 20 points to a flat 7,900 when markets open today after closing 13 points lower on Monday.
US stocks also closed lower yesterday, with the Dow Jones down 0.4% and the S&P 500 and Nasdaq down 0.3% each.
With no news on the macroeconomic front, there may be little to sway UK blue chips in today’s opening exchanges.
On the company news front, Ocado will shortly provide a trading update, with investors hoping for calm after a recent dramatic showdown with M&S over the duo’s joint venture.
William Hill owner 888 Holdings PLC (LSE:888) and Ladbrokes owner Flutter Entertainment PLC (LSE:FLTR) show us the state of the gambling industry with their annuals, while YouGov PLC (AIM:YOU) reports its interims.