- FTSE 100 up 14 points at 8,179
- Energy bills to fall
- Beer sales soar on Euros boost
4.00pm: FTSE 100 to close higher
London's blue chips are on track to close slightly higher after shares slipped at the end of the day.
The FTSE 100 shrugged off news that the French far-right was close to taking power after it led the first round of the election.
However, with the results closer than analysts had expected, markets have reacted positively, with the prospect of a hung parliament growing more likely.
Meanwhile, in the UK, housebuilders and real estate companies were handed a boost after it was revealed house prices lifted by 1.5% in June.
Land Securities jumped around 2%, while Taylor Wimpey increased by 1.5%.
Other risers included Glencore, Phoenix Group and Standard Chartered.
Pushing the index in the other direction was BAE Systems, Burberry and Holiday Inn owner IAG.
On IAG, analysts expect second-quarter revenue per room [Revpar] to rise by 3.4% with underlying earnings pushing towards a 10% improvement.
However, because uncertainties surround the US and China, Jefferies has mainatined its ‘hold’ rating, though its price target is tweaked up slightly to US$84.
3.40pm: Commodities and currencies today
As the FTSE 100 moves towards the close, here's a look at how commodities and currencies have performed today:
- Bitcoin/USD: flat at $62,710
- GDP/USD: flat at $1.265
- GDP/EUR: flat at €1.178
- EURO/USD: flat at $1.073
- Brent Crude: +0.35% at $85.30
- WTI Crude: +0.4% at $81.84
- Gold: -0.14% at $2,321
- Silver: +0.5% at $29.25
3.16pm: Titanic maker sees shares suspended
Harland & Wolff, the shipmaker that built the Titanic, has had its shares suspended after the Belfast dockyard owner failed to publish its results on time.
The company was required to publish its 2023 results by 30 June but, as it had revealed previously, these had been delayed by talks with its auditors about revenue recognition in some of its multi-year contracts.
Revenues for last year have, under the new arrangement, been totted up to £86.91 million, more than three times higher than the £27.75 million from 2022, with the company "on track" for £200 million in 2024.
Operating losses were also more than halved to £24.71 million from £58.51 million, with total losses of £43.08 million down from £70.80 million.
2.31pm: Wall Street starts higher
US stocks have opened higher today, with the markets lifted by a bullish performance in the first half and expectations it will continue throughout the next few months.
The Dow Jones lifted 0.2% to 39,204, while the Nasdaq opened at 17,772, up also by 0.2%.
The S&P 500 started the day 0.25% higher at 5,474.
Some of the companies making today's headlines included Boeing, which opened close to flat after it announced it would be buying part supplier and former subsidiary Spirit AeroSystems for US$8.3 billion.
Boeing was also handed an ultimatum by the US justice system: admit to fraud charges or face a public trial for the two fatal crashes of 737 max planes.
Attorneys working for the relatives of those lost in the fatal crashes accused the government of offering “another sweetheart plea deal” to Boeing.
"The memory of 346 innocents killed by Boeing demands more justice than this,” said Paul Cassell, who represents multiple families of the crash victims.
Meanwhile, Birkenstock saw its shares lift close to 4% after analysts at UBS upgraded it to a 'buy', citing higher prices and demand in Asia as a reason for stronger growth.
Chewy, the pet food retailer, lifted more than 9% after it was revealed meme stock trader Roaring Kitty, had developed a 6.6% stake in the company.
2.16pm: German inflation slows more than expected
German inflation decelerated faster than expected in June, in a sign that price rises have started to ease and increasing the likelihood for more European rate cuts this year.
The consumer price index in Germany dropped from 2.4% in May to 2.2% in June, according to official figures from the country's statistics agency.
Markets had forecast a 2.3% rise, while core inflation, which outstrips volatile energy and food prices, rose by 2.9% in June.
Franziska Palmas at Capital Economics said: "The German data, together with figures for France, Italy, Spain and Portugal released last week, suggest that eurozone headline HICP inflation fell a bit more than expected in June, from 2.6% to 2.4%.
"Overall, slow disinflation in the core and services categories is consistent with our view that the ECB will cut rates only gradually.
"We continue to forecast a pause in July and two more cuts this year, taking the deposit rate to 3.25%."
1.57pm: Boeing given week to admit fraud charges
Boeing has been handed an ultimatum by the US justice system: admit to fraud charges or face a public trial for the two fatal crashes of 737 max planes.
The US Department of Justice said Boeing will have until Friday to admit its guilt.
Should Boeing accept the plea, it will have to pay £192 million (US$244 million) in criminal fines and be put under a three-year probation period, according to multiple reports today.
Admitting to a criminal charge could also affect the aircraft maker's partnerships with the US military.
1.40pm: Wall Street to open higher
US stocks are on track to start the first day of the second half higher as economists predict the AI-driven surge to continue throughout summer.
All three of the main indexes were on track to open higher, attempting to offset losses on Friday and continue the strong pace set in the first six months of 2024.
During the first half, the S&P 500 jumped 14.5%, the Nasdaq lifted by 18.1% while the Dow Jones, having suffered a pullback in the second quarter, rose by 3.8%.
On the talk of tech-driven momentum, analysts believe it is here to stay, at least for a while.
“We don’t see a lot of evidence of tech slowing,” King Lip, at BakerAvenue Wealth Management said to CNBC.“If anything, you could argue that it’s accelerating.”
“The reality is that these companies have been so well managed through thick and thin, that during times like this when the economy is growing, they’re able to grow their earnings quite significantly."
1.20pm: Olympics to deter tourists from trips to Paris
Tourists are expected to avoid Paris this summer as the Olympic Games take place, with Air France warning that its sales will drop due to fewer passengers flying to the capital.
The airline expects to take a £150 million hit this summer because of the decline in tourists travelling to the city, with many expected to avoid it due to the busy nature of the Olympics.
Around 15 million visitors are expected to watch the Olympics live, two million of which will be travelling from outside of France, the Centre for Law and Economy of Sport revealed.
However, there is concern the major tourist destination will be avoided.
Air France said: "International markets show a significant avoidance of Paris.
"Travel between the city and other destinations is also below the usual June-August average as residents in France seem to be postponing their holidays until after the Olympic Games or considering alternative travel plans."
1.01pm: More banks lift City bankers bonus cap
A third US investment bank has lifted its ban on bonuses for its staff in London ahead of what is expected to be a spate of dealmaking in the City when interest rates start to turn down.
Wall Street giant Morgan Stanley (NYSE:MS) said it would be replacing the EU-imposed two-times salary cap with 'appropriate' internal multipliers.
Rivals Goldman Sachs and JP Morgan have already said they are lifting the bonus limit for staff based in the UK.
Morgan Stanley (NYSE:MS) employees based in the EU will still be covered by the salary cap, the bank said.
12.41pm: BlackRock unlocks private market data with latest purchase
BlackRock, the asset management behemoth, will have greater access to information about private markets after it purchased UK data group Preqin for £2.55 billion.
Preqin provides independent data for alternative markets and is expected to be integrated into BlackRock's financial technology platform Aladdin, which provides fund managers and investors with research and information.
Through the deal, the newly-purchased company is expected to lift revenues by US$240 million this year, having experienced an average of 20% growth per anum since 2021.
"As clients increasingly evolve their focus from choosing products to constructing portfolios, this shift requires technology, data, and analytics that create a 'common language' for investing across both public and private markets," said Rob Goldstein, BlackRock's chief operating officer.
12.20pm: Unite union calls off Port Talbot strike
Workers at Port Talbot have called off a planned strike after owners Tata threatened to move the closure date to before the industrial action.
Unite union said it would no longer be launching a walkout on July 8 in the hopes that it can have additional discussions with Tata over the future of the UK's largest steelworks.
Other unions such as the Community and GMB had urged Unite to avoid the strikes amid fears it would speed up the closure of Port Talbot's fourth blast furnace, which was initially scheduled to shut in September.
With the election this week and the potential for a new government to take charge, representatives of Port Talbot workers had hoped the potential new Labour leadership could help extend the life of the furnaces.
Tata's decision comes as part of its effort to reduce carbon emissions, replacing the old fossil-fuel-powered blast furnaces with a single electric arc furnace.
It aims to support the site's move towards cheaper, greener steel production.
Despite the £500 million in government support for this transition, approximately 2,500 job losses will occur over the following year before a further 300 in the next three years.
12.01pm: Boeing buys Spirit AeroSystems
Boeing shares are set to fall more than 1% when US markets open on Monday after it agreed to buy Spirit AeroSystems, in a deal that will see its parts supplier arm back into the group for a total cost of $8.3 billion.
The US aerospace company will buy "substantially all" of commercial operations related to its own aircraft, as well as additional commercial, defense and aftermarket operations.
The merger values Spirit at $4.7 billion, or $37.25 per share, with the total transaction value including debt.
“Boeing’s decision to acquire Spirit AeroSystems and bring it back in-house, having spun it off in 2005, makes sense," said Russ Mould at AJ Bell.
"The company was at the heart of the manufacturing defects and safety concerns over its 737 Max airliner which have put the Boeing’s share price into a tailspin.
"This move gives Boeing more control."
11.41am: England's late escape to boost beer sales
England remaining in the Euros is set to hand a boost to pubs and other hospitality venues showing the game.
Industry data from the CGA highlighted that the first weekend of the Euros helped boost beer sales by 18% compared to a year prior.
Total drink sales during the week to June 22 lifted 9% year-on-year, marking the first week of positive growth in around a month.
On England's matchday, which was also Father's Day, drink sales lifted by 43%, while the match against Denmark saw a 53% surge.
“It’s no surprise to find that beer benefits most from the football, and venues and suppliers will be hoping England can progress deep into the tournament and deliver several more bumper day," said Jonathan Jones at CGA.
"However, with many consumers watching at home, operators need to emphasise the special atmosphere of pubs and bars if they are to lure people off their sofas for the knock-out stages.”
11.24am: Facebook owner faces breach of EU's digital markets act -report
The European Union (EU) is set to charge Meta Platforms Inc., Facebook’s parent company, with violating its new Digital Markets Act (DMA), shortly after launching a similar case against Apple Inc, according to the Financial Times.
Regulators are concerned about Meta's "pay or consent" model, where users either allow data collection for free use of Facebook and Instagram or pay to avoid data sharing, the UK business broadsheet said, citing three sources.
If found guilty, Meta could face fines up to 10% of its global turnover, increasing to 20% for repeated offences.
Last week, regulators in the EU opened an investigation into Apple for stifling competition, saying its App Store rules breach the DMA, preventing app developers from freely steering consumers to alternative offers.
10.59am: JP Morgan shorts Raspberry Pi (LSE:RPI)
Raspberry Pi (LSE:RPI), the DIY computer-making group, has seen its shares shorted by JP Morgan just weeks after its IPO in London was hailed as a boost to the flagging stock exchange.
JP Morgan's asset management division has built a short position equal to 0.51% of Raspberry Pi (LSE:RPI)'s entire share capital, a disclosure to the FCA revealed.
It is the first investor to declare a short position in Raspberry Pi (LSE:RPI) despite the company's shares having jumped by as much as 43% since it was listed on June 11.
Analysts at AJ Bell believe the decision to short the company isn't just based on making a quick return on share price patterns for new listings either.
"What’s odd is the point at which JPMorgan opened its short position. Its short against Raspberry Pi (LSE:RPI) was made on 25 June, which is after the initial pullback happened in the share price," said Russ Mould at AJ Bell.
"In effect, it is betting against the current up-trend in the stock which implies it might have concerns about the business or its valuation.
"Any disruption to its supply chain could push up costs or restrict component availability – two factors which could lead to customers having to pay more for its kit.
"It is also heavily reliant on a handful of partners, principally Broadcom as a component supplier and Sony as its biggest manufacturer. Any breakdown with these relationships could be catastrophic for the business.”
10.30am: Boots boss quits as owner shelves float
Seb James, CEO of Boots since 2018, will leave the company in November, as its owner postponed a multibillion-pound sale for the second time.
James will become the group CEO of Veonet, the European ophthalmology clinic chain.
At Boots, he revitalised the beauty sector by introducing new brands, refurbishing beauty halls, and enhancing pharmacy services.
James expressed pride in leading Boots, especially during its 175th year, and praised its impact on UK health and beauty retail.
10.04am: Aviva completes £300 million buyback
Aviva shares lifted close to 1% after it announced it completed its £300 million buyback programme.
Launched back in March, the insurance firm has now acquired some 62 million shares back from stakeholders at an average price of 478p per share.
At Friday's close, Aviva had more than 2.68 billion shares admitted to trading on the market, 3.3 million of which are scheduled to be cancelled as part of the programme.
Following the cancellation, the FTSE 100 group will have 2.67 billion shares available to buy and sell.
9.48am: UK manufacturing slows unexpectedly in June
Manufacturing in the UK unexpectedly slowed in June, sliding back from May's 22-month high as the disruption from the Red Sea weakens demand from overseas customers.
S&P Global's UK Manufacturing PMI fell to 50.9 last month, down from 51.2 in May and lower than the market consensus of 51.4.
Despite the drop, activity remained ahead of the 50 mark, which separates the industry's performance between growth and contraction.
S&P claimed the industry's backdrop remained positive in June, with new orders and output lifting despite employment falling, delivery times increasing and input costs rising at the fastest rate since January 2023.
"Shipping issues resulting from the Red Sea crisis, low stocks at suppliers, insufficient vendor capacity and port issues all led to longer lead times," S&P said.
9.22am: Croda poaches Johnson Matthey finance chief
Croda, the chemicals maker, has traded flat this morning despite having announced it poached finance chief Stephen Oxley from rival Johnson Matthey.
Oxley will become CFO at Croda by no later than April 1 2025, departing from the same role at the speciality chemicals developer by no later than 31 March 2025, both companies' statements revealed.
Anthony Fitzpatrick, the president of strategy, corporate development & industrial specialities at Croda, will take over the role of CFO at the Snaith-based firm in the interim.
Oxley has worked in several industries including healthcare and industrial sectors across a 30-year career, having also been a partner at KPMG.
Danuta Gray, Croda's chair said: "Alongside his strong track record as a PLC chief financial officer incorporating strategic thinking and operational delivery, he brings valuable experience of audit and advisory roles for large, complex international companies across a number of relevant sectors."
Johnson Matthey shares also held flat this morning.
8.59am: Anglo American suffers coal mine fire
Anglo American shares dropped more than 3% this morning, making it the top FTSE 100 faller after its coal mine in Queensland, Australia suffered a fire.
Production at its Grosvenor mine, which produces coal to make steel, was halted over the weekend after the fire, leaving question marks over whether the group can still quickly offload the asset as part of its recovery plan.
Remedies to fix the mine are expected to take "several months" due to the likely damage caused by the fire to the underground parts of the site.
Grosvenor's production accounts for around a fifth of the group's annual forecasts in its coking coal division, according to analysts at RBC Capital Markets.
Analysts at Liberum warned that if second-half production forecasts are reduced in line with the effects of the disruption then full-year underlying earnings for the overall company could drop by 1%.
"Not such a big deal but might slow down the sales process, which would otherwise been the easiest step of Anglo American's restructuring," said Ben Davis at the UK broker.
8.36am: Morning so far
London blue chips lifted higher this morning after households were boosted by news that energy prices would fall within the next few months.
According to Ofgem's latest price cap, bills for electricity and gas are expected to average £1,568 a year, marking a drop of £122 and taking it to the lowest point in two years.
Meanwhile, the markets have reacted positively to the first round of voting in the French parliamentary election, with the far right taking the lead albeit by a thinner majority than was initially expected.
Analysts now believe a hung parliament will be the result after the second round this Sunday, following Marine Le Pen's National Rally taking 33% of the initial votes, while a left-wing alliance recieved 28%.
Back in the UK, house prices rose in June despite market activity, especially those involving mortgages, remaining subdued.
An average home rose in value by 1.5% year-on-year in June, even though the total number of transactions was down by around 15% versus pre-pandemic levels
In company news, Anglo American was the largest FTSE 100 faller after it dropped 2.5% on the back of news its coal mine suffered a fire.
Production at the site in Queensland, Australia was halted and has left a question mark over the group's ability to still quickly offload the asset as part of its recovery plan.
8.15am: House prices rise despite subdued market activity
UK house prices lifted by 1.5% in June compared with a year ago, according to Nationwide's house price index.
The typical price for a home rose to £266,604 last month, marking a 0.2% increase from May's average of £264,249.
It means house prices are now 3% below the all-time highs recorded by Nationwide's index back in the summer of 2022.
“Housing market activity has been broadly flat over the last year, with the total number of transactions down by around 15% compared with 2019 levels," said Robert Gardner, Nationwide's chief economist.
"Transactions involving a mortgage are down even more (nearly 25%), reflecting the impact of higher borrowing costs. By contrast, the volume of cash transactions is actually around 5% above pre-pandemic levels."
Gardner pointed out how the average mortgage rate for a first-time buyer on a five-year fixed deal with a 25% deposit was around 4.7%, up from 1.3% in 2021.
“As a result, housing affordability is still stretched. Today, a borrower earning the average UK income buying a typical first-time buyer property with a 20% deposit would have a monthly mortgage payment equivalent to 37% of take-home pay - well above the long run average of 30%," he added.
7.55am: Energy price cap revealed
Energy bills are set to ease for the next few months until October after the industry regulator Ofgem announced the new energy price cap for England, Scotland and Wales.
Bills for electricity and gas are expected to average £1,568 a year for a typical household, a drop of £122 and taking it to the lowest point in two years.
However, these reductions are predicted to be offset by rises in the run-up to winter, with leading analyst Cornwall Insight expecting a 10% increase from now to October.
It means household energy bills are forecast to reach £1,723 per year in October, up £155.
"Modest falls in summer look set to be wiped out by bigger rises in autumn when people will need to put the heating back on," said Adam Scorer, chief executive at charity National Energy Action.
"The cost of energy remains an unaffordable luxury that many of the poorest simply cannot afford."
According to BBC analysis of the price cap, it will mean those living in a flat or one-bed will see annual energy costs of around £1,148, while larger four-bedroom-plus houses will pay £2,182 on average.
7.37am: What's happening in France?
Overnight in France, officials counting the first round of electoral votes found National Rally, the far-right group, was in the clear lead putting it in a strong position ahead of the second round of voting on July 7.
National Rally recieved 33% of the votes, followed by the left-wing alliance with 28% and Macron's centrists with 20%.
Marine Le Pen, the boss of National Rally, said “Macronist bloc has been all but wiped out” in reaction to the results, while potential future PM and leader Jordan Bardella said he aims "to be prime minister for all the French people, if the French give us their votes."
However, not all analysts are as convinced.
"A hung parliament remains the most likely outcome," said Holger Schmieding at Berenberg.
"Whereas RN [National Rally] might possibly still win an absolute majority of seats in the second round, this now looks even slightly less likely than it did before."
Yet, the major concerns that linger are that spending, if not carefully planned, could trigger a financial crisis.
Schmieding thinks the risk of a financial crisis would rise if the RN abandons plans of moderate spending or the left-wing alliance wins power and begins a campaign of "ambitious and expensive fiscal promises".
7.15am: FTSE 100 to open higher
Britain's FTSE 100 is on track to open higher at around 8211 after it was revealed energy bills for households were expected to fall to two-year lows.
Regulator Ofgem said the new price cap for those in England, Wales and Scotland will see a £122 a year reduction in utility bills, albeit only temporarily as costs are expected to rise in October.
Meanwhile, in mainland Europe, the French’s far right is in touching distance of securing power after a snap election was called earlier this month.
Marine Le Pen’s National Rally took 33.1.% of the votes in the first round of parliamentary elections, while Macron’s party received 20%.
Over in Asia, stocks reacted cautiously to the changes in Europe and the uncertainty of US interest rate cuts by trading flat.
The MSCI's widest index of Asia-Pacific shares barring those in Japan, were 0.04% lower.