- FTSE 100 sheds 110 points
- Vistry profit warning hits housebuilders
- Miners fall as China stimulus measures underwhelm
4.03pm: Blue chips set for grim day
London’s blue chips remained on course for a grim day come late trading as the FTSE 100 remained well off the mark having lost 110 points to sit at 8,192.
Miners, Asia-focused stocks, housebuilders and oil firms continued to weigh on the index as Imperial Brands PLC (LSE:IMB)’s 4.4% gain placed the tobacco firm as a stark outlier on the index.
This came after Imperial announced new buybacks following a strong trading update in the morning... Read more
International Consolidated Airlines Group SA (LSE:IAG) and Ashtead Group PLC (LSE:AHT) were the only other firms to rack up a 1%-plus gain in the meantime, doing little to offset declines elsewhere.
Anglo American PLC (LSE:AAL) fell by 6.4% and was joined by Antofagasta PLC (LSE:ANTO), Glencore PLC (LSE:GLEN), Rio Tinto PLC among the FTSE 100’s biggest fallers.
A lack of new expected stimulus measures from China’s National Development and Reform Commission overnight had hit miners during the day, after sentiment had been boosted by government and central bank pledges to support the economy previously.
Asia-focused Prudential PLC (LSE:PRU) and HSBC Holdings PLC (LSE:HSBA) also sat among the day’s losers as a result.
“This could be a warning sign that the boost global equities received from the China stimulus measures may not persist,” XTB analyst Kathleen Brooks noted.
Vistry Group PLC (LSE:VTY) topped the fallers though, having dropped 24% after warning on profits over the coming years, which in turn dragged down fellow housebuilders in another blow to the index... Read more
Brooks added: “UK asset prices may also remain under pressure in the lead up to the UK budget later this month.”
3.38pm: Gas price slides on milder weather in Europe
The price of wholesale gas dropped on Tuesday as milder weather saw stocks buoyed across Europe.
UK natural gas fell over 2.2% throughout the day to just over 97 pence per therm, spelling good news for energy prices ahead as Britain prepares for the colder winter months.
This coincided with a drop in wholesale gas prices on the continent as storage sites were said to be almost 95% full on the back of recent milder weather.
UK gas had sat above the 102p per therm mark just last week, with a lack of escalations between Israel and Iran so far, which had led to fears over supply, also appearing to feed through.
3.21pm: FTSE 100 falls further, sheds 100 points
A slight recovery for London’s blue chips into Tuesday afternoon was short-lived as the index dipped further and back into the 100-plus point fall territory.
Late plunges by Shell PLC (LSE:SHEL, NYSE:SHEL) and BP PLC (LSE:BP.) on the back of a drop in oil throughout the day saw things go from bad to worse for the FTSE 100.
The heavyweights fell by 3.5% and 2.5% into the afternoon, coinciding with benchmark Brent crude's fall from above US$80 a barrel overnight to US$77.57 on Tuesday.
By mid-afternoon, the index was down 116 points at 8,187, with miners, housebuilders and Asia-focused stocks all continuing to weigh.
2.57pm: Wall Street mixed after Monday sell-off
Wall Street faced a mixed start on Tuesday as stocks looked to recover from Monday’s sell-off.
The Nasdaq and S&P 500 both gained as the market opened, climbing by 0.6% and 0.4% respectively, though the Dow Jones fell by 0.1%.
A jump in Treasury yields on Monday had pressured stocks as expectations for further steep rate cuts by the Federal Reserve were scaled back after Friday’s strong job data.
2.26pm: FTSE 100 remains deflated
London’s blue chips remained well down into Tuesday afternoon, as miners continued to weigh alongside housebuilders.
The FTSE 100 had shed 88 points come the afternoon, having regained slightly from a 100-plus point fall earlier on.
Vistry Group PLC (LSE:VTY) continued to be the day’s biggest loser with a 22.7% fall after warning on profits for the coming years due to higher than anticipated building costs.
This weighed on rival housebuilders, with Persimmon PLC (LSE:PSN) and Taylor Wimpey PLC (LSE:TW.) among those also down.
Miners also remained a drag for the index, as a lack of new expected measures from China overnight hit sentiment after last month’s central bank and government pledges to boost the world’s struggling second-largest economy.
Asian-focused Prudential PLC (LSE:PRU) and HSBC Holdings PLC (LSE:HSBA) were also among the day’s biggest fallers following the news.
A dip in oil prices throughout Tuesday also saw heavyweights Shell PLC (LSE:SHEL, NYSE:SHEL) and BP PLC (LSE:BP.) reverse on Monday’s gains, as each fell by 1.3% and 2.3% respectively.
Having climbed above the US$80 a barrel mark overnight, benchmark Brent crude receded to US$78.57 come Tuesday afternoon.
2.15pm: US trade deficit narrows to five-month low
Growing exports and a reduction in imports of the likes of cars saw America’s trade deficit narrow to a five-month low in August, figures showed on Tuesday.
According to the US Bureau of Economic Analysis, the trade deficit within the world’s largest economy fell by 11% to US$70.4 billion.
This was as exports ticked up 2.0% to US$271.8 billion, while imports fell by 0.9% US$342.2 billion.
Exports of consumer and capital goods helped drive the increase, the Bureau of Economic Analysis reported, while imports of cars fell, alongside the likes of industrial materials.
1.16pm: Shein revenue surpasses £1.5bn in UK as London float looms
Shein has said revenues in its UK business hit £1.55 billion last year as the online fashion group gears up for a potential float on the London Stock Exchange.
This marked an increase from £1.12 billion over a 16-month period previously, Shein’s second set of results for its UK business showed, as pre-tax profit more than doubled to £24.4 million.
Singapore-based Shein, which was founded in China, has eyed a listing in the UK after regulatory woes saw initial plans late last year to float in New York ditched.
The company has come under fire from rivals such as Superdry in the UK though, over a legal loophole which sees it not required to pay tax on low-value parcels shipped directly to customers… Read more
12.56pm: Wall Street in line for better start
Wall Street appeared on course for a better start to the day after a sell-off on Monday hit stocks.
Futures had the Nasdaq climbing 0.5% ahead of Tuesday’s opening bell, while the S&P 500 and Dow Jones were seen 0.4% and 0.2% higher respectively.
Each had shed value on Monday as stocks came under pressure from a jump in Treasury yields on the back of falling expectations for further steep rate cuts by the Federal Reserve.
Rates remained above 4% on 10-year yields on Tuesday, though inched back as Fed member Adriana Kugler said she supported further cuts if inflation continued to fall back.
XTB analyst Kathleen Brooks noted the narrative around cuts, which had swung in favour of smaller reductions after last Friday’s expectation-beating non-farm payroll report, could well change again ahead of November’s Fed meeting.
“There is another payrolls report and a US presidential election before [then],” she pointed out.
“For now, there can be no denying the major shift in sentiment in recent days that has the potential to disrupt the risk rally that dominated markets in the third quarter.”
Among companies, attention was on PepsiCo Inc (NASDAQ:PEP, ETR:PEP)’s third-quarter report, with shares falling in pre-market trading after the drink maker trimmed guidance on lower US sales.
12.24pm: Northvolt subsidiary files for bankruptcy
Northvolt subsidiary Ett Expansion AB has filed for bankruptcy after the cash-strapped battery firm scrapped plans to expand its flagship factory last month.
The subsidiary was due to manage the project at the company’s plant in Skelleftea, northern Sweden.
“All contacts with Ett Expansion AB will from now on be managed by the bankruptcy trustee,” Northvolt added, with the subsidiary said to have no direct employees... Read more
11.51am: Non-essential spending picks up with Oasis reunion boost
Non-essential spending climbed at its fastest pace this year in September, aided by a boost from tickets being swept up for Oasis’ reunion tour next year.
Overall consumer card spending ticked up by 1.2% over the month, Barclays PLC (LSE:BARC) reported on Tuesday, as non-essential transactions climbed by 2.7%.
This came as entertainment spending increased by 14.4%, aided by sales for Oasis’ concerts next year, while the likes of clothing, health and beauty picked up.
Spending on essentials, including groceries, declined by 1.7% during the month, however, marking the fastest downturn since April 2020.
Barclays reported that seven in 10 shoppers had looked to get more value from weekly shops in efforts to save money, while over half kept buying treats and luxuries despite budgeting.
“Consumers are prioritising spending on things that bring them joy,” Barclays retail head Karen Johnson commented.
“While shoppers’ remain cost-conscious, it’s clear they’re responsive to retailers’ promotional activity.
“While many are anticipating a costly Christmas, there are encouraging signs that people feel confident in their ability to manage their household finances and take control of their festive spending.”
11.30am: Gold loses further ground on Tuesday
Gold traded lower yet again on Tuesday as last week’s sudden reduction in US interest rate cut expectations continued to weigh.
Spot prices fell by 0.57% on Tuesday to US$2,642 an ounce, taking gold further from its peak above the US$2,680 mark seen late last month.
This followed a fall on Monday after strong US job figures late last week saw expectations for a further 50 basis point cut to base interest next month effectively wiped.
Non-farm payroll data showed far more jobs were added to the US economy in September than had been expected, calming nerves over the potential for a recession ahead.
SlateStone Wealth strategist Kenny Polcari noted “the idea of smaller rate cuts” had caused some traders “to ring the cash register [and] lock in some of those substantial gains we have seen in gold over the last couple of months”.
“While we got one jumbo cut,” he added, discussing the Fed’s reduction in September, “the sense is now that we can expect a 25 basis point cut if we even get a cut at the November meeting”.
US consumer price index data on Thursday is set to provide further clarity around the state of inflation and scope for another interest rate cut by the Fed in November.
11.11am: Greencore tops FTSE 250 risers after upgrading guidance
Convenience food maker Greencore Group PLC (LSE:GNC) jumped to the top of the FTSE 250’s risers on Tuesday after hiking profit guidance following a strong fourth quarter.
Though the wider index followed the FTSE 100 lower, falling by 0.9%, Greencore stood out as just one of two risers to add more than 1% with a 7.7% gain.
Greencore had noted adjusted operating profit for the year was expected to sit between £95 million and £97 million and ahead of market expectations.
This followed an “outstanding” fourth quarter, chief executive Dalton Phillips said, as revenue grew by 3.7% on a like-for-like basis.
10.53am: Diageo down as drink makers hit with China brandy import rules
Diageo PLC (LSE:DGE) fell 1.8% on Tuesday in line with drink makers after China firmed up import rules on European brandy.
Anti-dumping measures will see brandy makers on the continent required to put down security deposits of up to 39% on imports to China from October 11.
China’s commerce ministry noted an investigation into the dumping of European-made products threatened to “substantially damage” its own brandy sector, Reuters reported.
This comes days after the European Commission passed rules which will see Chinese electric vehicles imported to the continent hit with tariffs of up to 35.3%.
French spirit makers appeared to bear the brunt of the news, with Remy Cointreau dropping 8% ahead of Pernod Ricard and Hennessy cognac maker LVMH.
9.55am: Imperial Brands the outlier as FTSE 100 plummets
Imperial Brands PLC (LSE:IMB) was an outlier as the only company in the FTSE 100 to gain over a per cent on Tuesday morning.
Having unveiled buybacks of £2.8 billion in a positive update earlier on, shares in the tobacco firm ticked up 4%... Read more
The wider picture was less positive though, as Vistry’s profit warning continued to weigh on housebuilders and miners remained downtrodden alongside Asia-facing firms.
This came after measures unveiled overnight to support the Chinese economy by China’s National Development and Reform Commission chairman, Zheng Shanjie, disappointed.
Though pledges were made to speed up the likes of special purpose bond issuance, no new major stimulus plans were unveiled, hitting sentiment over efforts to revive the world’s second-largest economy.
“The National Development and Reform Commission [...] offered no details that investors craved on China's aggressive stimulus measures,” Tickmill Group partner Patrick Munnelly said.
“Markets were disappointed by the lack of stimulus specifics,” he added, which came after stimulus pledges by China’s central bank and government buoyed stocks last month.
Asia-focused Prudential PLC (LSE:PRU) fell by 5.8% on Tuesday morning as a result and was joined by HSBC Holdings PLC (LSE:HSBA) among the day’s losers.
Miners, having climbed following the previous measures which promised to address the likes of China’s struggling property market and in turn boost demand for commodities, also fell across the board.
Anglo American PLC (LSE:AAL) dipped 6.1% early on, as Antofagasta PLC (LSE:ANTO) and Rio Tinto PLC lost over 5% each and were joined by Glencore PLC (LSE:GLEN) among the day’s fallers.
9.34am: Uptick in IPO activity expected after ‘subdued’ quarter
Accountancy EY has said an uptick in listings is expected over the final three months of the year and into the next after just two companies floated in London during the third quarter.
Floats by Rosebank Industries PLC (AIM:ROSE) and Aberforth Geared Value & Income Trust PLC onto London’s AIM and main market respectively raised a combined £64.8 million over the third quarter, against £359.8 million last year.
New listing rules in London are expected to boost activity ahead though, with a growing number of companies said to be preparing for floats… Read more
9.10am: Asda loses further market share as Tesco, Sainsbury’s gain
Asda lost further market share in the three months to September as Tesco PLC (LSE:TSCO) increased its leading position followed by J Sainsbury PLC (LSE:SBRY).
Figures from Kantar showed that declining sales at Asda meant its market share fell from 13.7% to 12.6% year on year over the 12 weeks to September 29.
This meant discounter Aldi saw its gap to the UK’s fourth-largest supermarket narrow further, despite its market share dipping from 9.9% to 9.8%.
Sales at Asda dipped by 5.1% over the period, reflecting the retailer’s ongoing struggles, as these increased at five of the UK’s six largest supermarkets.
These included Lidl, Morrisons and Aldi, as the two largest, Tesco and Sainsbury’s, saw their market share increase further to 28.0% and 15.2% respectively on higher sales.
Kantar retail insight head Fraser McKevitt noted: “In the fiercely competitive retail sector, the battle for value is on.
“Supermarkets are doing what they can to keep costs down for consumers,” he added, “with spending still stretched”.
Unusually wet weather had buoyed sales of “classic warming staples” into September, McKevitt continued, including hot chocolate, soup and baking goods.
Over the four weeks to September 29, Kantar reported supermarket inflation increased by 2.0%, against 1.7% in the previous month.
8.46am: FTSE 100 sheds 85 points, Vistry plummets
London’s blue chips fell by 85 points as trading got underway on Tuesday, as Vistry Group PLC (LSE:VTY)’s profit warning hit housebuilders and miners weighed.
Vistry plummeted 33% early on following its warning that profit over the next three years would be hit by higher building costs.
This subsequently sent the likes of Persimmon PLC (LSE:PSN) and Taylor Wimpey PLC (LSE:TW.) lower as fears spread across to rival housebuilders.
Miners Antofagasta PLC (LSE:ANTO), Anglo American PLC (LSE:AAL), Rio Tinto PLC and Glencore PLC (LSE:GLEN) also faced hefty declines, alongside Asian-focused stocks Prudential PLC (LSE:PRU) and HSBC Holdings PLC (LSE:HSBA).
This followed hits to the likes of Hong Kong’s Hang Seng index overnight, as nerves built over “a perceived lack of detail from [Chinese] authorities following the recently announced raft of stimulus measures,” interactive investor analyst Richard Hunter noted.
He added profit taking among oil traders had also carried through to the oil-heavy FTSE 100 index, after Brent crude surpassed US$80 overnight before falling back on Tuesday.
8.30am: Oil briefly passes $80 as Middle East tensions loom
Oil surpassed the US$80 a barrel mark overnight as tensions in the Middle East continued to loom alongside the threat of supply disruptions in the US Gulf of Mexico.
Benchmark Brent crude climbed as high as US$81.09 on Monday evening, before ending the day at US$81.01 for a 4.3% gain.
This meant the benchmark had hit its highest level since August, with fears over a return strike by Israel against Iran after last week’s missile attack buoying the price.
Concerns that supply from the US Gulf of Mexico could be affected by Hurricane Milton also weighed, with the storm expected to make landfall on Wednesday.
Brent scaled back slightly on Tuesday to US$79.42 a barrel... Read more
8.05am: Vistry warns on profits due to higher building costs
Vistry Group PLC (LSE:VTY) has said higher-than-expected building costs will hit profits over the coming years.
Build costs have been understated by around £115 million across nine housing developments at its South division, a 10% underestimate, the company said.
This is set to impact on group profit over the next three years, with a hit of roughly £80 million in the current year, £30 million for next year and £5 million for 2026... Read more
Shares ticked up 0.4% early on.
7.52am: Retail sales tick up at fastest pace in six months
Sales across Britain’s retail sector climbed at their fastest pace in six months throughout September, industry figures showed on Tuesday.
Total sales increased by 2% year on year, according to the British Retail Consortium (BRC), aided by a 3.1% uptick at food retailers, while non-food transactions fell by 0.3%.
The decrease for non-food retailers was not as bad as expected though, the retail body said.
“As Autumn rolled out across the UK, shoppers sought to update their wardrobes with coats, boots and knitwear,” BRC chief executive Helen Dickinson commented.
“The start of the month also saw a last-minute rush for computers and clothing for the new academic year.”
However, demand for big-ticket items remained low due to ongoing concerns among customers over their finances, she said.
7.42am: Water firms told to give £158mln back to customers
Water firms will have to return almost £158 million to customers after poor performances on issues such as pollution.
Regulator Ofwat said Tuesday that the £157.6 million rebate would be reflected in lower bills for customers and businesses across England and Wales between 2025 and 2026.
This followed an annual review of the sector by the regulator, which noted there had been an increase in pollution incidents in 2023 at nine of the sector’s 13 companies.
Ofwat added that there had been a 2% fall in such incidents since 2020, despite targets for a 30% reduction over the period covering until 2025.
“Money alone will not bring the sustained improvements that customers rightly expect,” Ofwat chief executive David Black commented... Read more
7.14am: Stocks to fall
London’s blue chips were seen off the mark ahead of the open on Tuesday, on what is set to be another quiet day on the company front.
Futures had the FTSE 100 falling 55 points before trading began in a reverse on Monday’s 22-point gain.
Unite Group PLC (LSE:UTG) is in line to report on Tuesday, alongside Angling Direct PLC (AIM:ANG) and S&U PLC (LSE:SUS), while retail sales figures are also due.
Asian markets were mixed overnight, with China’s Shenzhen enjoying the biggest gain of 5.3%, but Hong Kong’s HSI falling over 8%.
Oil held gains in the meantime as tensions in the Middle East saw benchmark Brent crude remain just below the US$80 a barrel mark, while gold was little changed at US$2,646 an ounce.