- FTSE 100 ticks up 15 points
- BAE surges on UK defence boost
- Smith & Nephew flags better year ahead
3.55pm: FTSE 100 in green but falls back late on
London’s blue chips largely gave up the day’s gains as Tuesday’s session drew closer to its conclusion, with the FTSE 100 up 15 points at 8,675 late on.
Smith & Nephew PLC re-emerged as the day’s biggest winner, after positive full-year figures sent shares in the medical equipment firm up 6.0%.
BAE Systems PLC followed with a 3.3% gain, following confirmation from prime minister Keir Starmer UK defence spending would be boosted to 2.5% of GDP by 2027.
Polar Capital Technology Trust PLC headed the fallers in the meantime, alongside the likes of US-focussed Scottish Mortgage Investment Trust PLC as Wall Street declined.
Mid-caps faced a mixed session, with the FTSE 250 down but FTSE 350 up in late trading. Junior stocks faced declines too, as the AIM all-share dropped two points to 708.
Among other risers, Union Jack Oil PLC held onto a 4.8% gain after unveiling a new commercial discovery at the Moccasin 1-13 well, in Oklahoma... Read more
Georgina Energy PLC climbed 3.9% on results of a scoping study at Australia’s Hussar and Mt Winter projects… Read more
News of a solar panel collaboration for investee GraphEnergyTech sent Frontier IP Group PLC up 4.1% in the meantime… Read more
2.44pm: Nasdaq slips in mixed start on Wall Street under tariff threat
Wall Street faced mixed fortunes as trading got underway on Tuesday, with the Nasdaq losing yet further ground after the bell.
The Nasdaq slipped an additional 0.4%, adding to Monday’s 1.2% decline, after fears around the impact of president Trump’s tariffs on the economy weighed.
The Dow Jones and S&P 500 fared better in the meantime though, adding 0.5% and 0.1% respectively as Tuesday’s session kicked off.
Home Depot Inc led the risers on the former, gaining 2.7% on expectation-beating figures, including positive comparable sales in its latest quarter, after eight consecutive declines.
Risers elsewhere included Solventum Corp, which jumped 8.5% on news Thermo Fisher Scientific would buy its purification and filtration arm for around $4.1 billion.
Keurig Dr Pepper Inc added 3.6% in the meantime, as fourth-quarter results also beat expectations.
Figures also showed house prices across the US rose 3.9% in the year to December, against November’s 3.7% increase, according to the S&P CoreLogic Case-Shiller U.S. National Home Price index.
1.44pm: BAE tops FTSE 100 after PM firms up defence budget hike
BAE Systems PLC rose to the top of the FTSE 100 risers on Tuesday as prime minister Keir Starmer firmed up plans to ramp UK defence spending.
Starmer told Parliament the UK’s security budget would climb to 2.5% of gross domestic product by 2027, from the 2.3% level currently.
Some £13.4 billion extra would go towards defence annually from 2027 as a result, he said, with a reduction in the UK’s aid budget set to “fully” fund the increase.
“This investment means that the UK will strengthen its position as a leader in Nato and in the collective defence of our continent, and we should welcome that role,” Starmer said.
Plans for ramped spending come ahead of a meeting between Starmer and Donald Trump on Thursday, after calls from the latter for Europe to boost defence budgets.
These have come as Trump attempts to broker a peace deal over the war in Ukraine, following Russia’s invasion in 2022.
FTSE 100-listed defence firm BAE Systems jumped 4.4% to 1,362p on the news, alongside peers such as Rolls-Royce Holdings PLC, which gained 1.5%.
Overall, the FTSE 100 was up 44 points at 8,702.
12.54pm: Retailers signal steeper cuts as sales fall again
Retailers have warned of steeper staff cuts over the coming month as a double whammy of declining sales and looming Budget-related cost increases weigh.
According to the Confederation of British Industry, retail sales volumes fell by a weighted balance of 23% in February, following a 24% decline in January.
Headcount across the sector fell by 13% in the meantime, with firms forecasting steeper reductions in March as sales fell at a sharper pace.
“Persistently weak demand conditions and the impact of the Autumn Budget have dampened retailers’ sentiment, contributing to the steepest deterioration in investment intentions in nearly six years,” CBI economist Martin Sartorius said.
Retailers have flagged price rises and job cuts in response to higher employer national insurance from April, unveiled in last October’s Budget, and wage growth.
The CBI’s survey also showed falling online, wholesale and motor sales, as orders to suppliers declined and were forecast to slip at a faster rate in March.
11.59am: Nasdaq to tumble as further tariff talk keeps pressure on Wall Street
Fears around looming tariffs appeared to remain front and centre of investors’ minds ahead of Tuesday’s opening bell on Wall Street.
Futures showed the Nasdaq off 0.5% ahead of trading, while the S&P 500 and Dow Jones were seen 0.3% and 0.2% lower respectively.
Both the Nasdaq and S&P 500 had faced pressure on Monday, with the former shedding 1.2% as president Trump signalled delayed levies against Canadian and Mexican goods would go ahead next week and flagged plans to curb Chinese investment in the US.
Scope Markets’ Joshua Mahony noted the “US stagflation story,” prompted by Friday’s weak purchasing managers index data, had “sparked widespread risk-off sentiment”.
Indeed, pressure on equities was mirrored by a slump for bitcoin on Tuesday to below the US$90,000 mark and to its lowest level in three months.
“Everywhere you look volatility and uncertainty are rising,” XTB analyst Kathleen Brooks added.
11.01am: Bitcoin slumps to three-month
Bitcoin hit its lowest level in three months on Tuesday as lingering concerns around the US economy added to pressure on the world’s largest cryptocurrency.
At US$88,289, bitcoin was off 3.5% and at levels last seen in mid-November, when Trump’s election victory had helped boost the price of the crypto.
However, wider uncertainty around stalling growth and renewed inflationary pressure in the US with Trump’s sweeping tariffs has since weighed.
Pointing to selling pressure on US equities most recently as a result, XTB analyst Kathleen Brooks said “everywhere you look volatility and uncertainty are rising”.
“The current environment of rising volatility is not conducive to cryptocurrency gains,” she added.
Bitcoin’s drop coincided with a 4.7% decline for the world’s second most valuable crypto, Ether, after a hack on cryptocurrency exchange Bybit last week also hit sentiment.
Arthur Hayes, co-founder of trading platform BitMEX, on Tuesday warned bitcoin could be headed for the US$70,000 mark if the declining price prompted hedge funds to unwind positions in exchange-traded funds.
10.08am: Smith & Nephew leads FTSE 100 higher; BAE up again
Smith & Nephew PLC led the FTSE 100 higher on Tuesday, surging 6.6% after signalling its turnaround would show benefits over the year ahead in full-year figures.
BAE Systems PLC chalked up another gain in the meantime, climbing 2.2% as speculation around hiked defence spending continued to buoy the stock.
Reports overnight suggested this could involve nuclear-armed French jets being placed in Germany to replace US forces under a threatened withdrawal by Donald Trump, as calls emerged for similar moves by the UK, according to the Telegraph.
Overall, the FTSE 100 was up 21 points at 8,680 come mid-morning, as banks were also among those in the green.
Mid and small caps were also higher, with both the FTSE 350 and AIM all-share moving into the green.
Among other risers, Georgina Energy PLC surged 8.1% after unveiling a scoping study confirming commercial potential at the Hussar and Mt Winter projects in Australia… Read more
9.22am: Tesla sales slump by nearly half in Europe
Tesla Inc faced a slump in European sales last month, as demand appeared to wane in line with repeated forays into the continent’s politics by owner Elon Musk.
According to the European Automobile Manufacturers’ Association, some 9,945 Teslas were sold across Europe in January, marking a 45% slump year on year.
Overall, sales of new battery-electric cars climbed by 34% to 124,341 units in the meantime, signalling tumbling demand for Musk’s brand.
Musk has repeatedly spoken out about goings-on in Europe, including by voicing backing for the far-right Alternative for Germany (AfD) ahead of last weekend’s elections.
French President Emmanuel Macron previously lashed out at Musk for intervening in the continent’s politics, with the billionaire also having dubbed the European Union “undemocratic”.
8.43am: Energy prices to be hiked by 6.4% in April
Energy regulator Ofgem has announced households will face a 6.4% increase in bills from April.
A typical home will now pay £1,849 annually, or £9.25 more per month.
The cap, which limits what suppliers can charge per unit of gas and electricity, affects 22 million homes in England, Scotland, and Wales.
Ofgem said the increase was driven by rising wholesale gas prices and inflation... Read more
Trade body Energy UK said the rise showed "once again" the UK was too reliant on foreign energy imports.
"If we don’t look to the future, we can’t stop the current situation repeating itself," chief executive Dhara Vyas commented.
The rise comes after energy debt levels have hit record levels in the wake of Russia's invasion of Ukraine, according to Ofgem.
8.21am: Uneliver faces pressure on surpirse chief executive departure
Unilever PLC shares came under pressure on Tuesday on surprise news chief executive Hein Schumacher would step down next week after less than two years in charge.
The Anglo-Dutch consumer goods giant, maker of Domestos, Dove, Hellman's and Marmite, has decided to promote finance chief Fernando Fernandez to the CEO role instead.
Fernandez started as chief financial officer in January last year, following a 22-month stint as president of the FTSE 100 company's Beauty & Wellbeing division... Read more
Shares were down 2.7%, placing Unilever ahead of the FTSE 100 fallers.
8.14am: FTSE 100 heads higher early on
London’s blue chips ticked up as Tuesday’s session kicked off, with the FTSE 100 rising nine points to 8,668 initially.
Smith & Nephew PLC headed the rise, surging 9.1%, following news in full-year results that its turnaround efforts would deliver a “step-up” in 2025.
Croda International PLC was another riser, gaining 3.3% after flagging 2024 as a “transitional year” upon posting an 11.6% fall in annual profit to £260 million.
Unilever PL lead fallers in the meantime with a 2.9% drop, as a string of miners also continued to pile pressure on the index.
Mid-caps faced better fortunes, with the FTSE 350 just up early on, while the AIM all-share dropped just below the mark.
Union Jack Oil PLC was among the junior market’s gainers, up 10.6% after unveiling a commercial discovery at the Moccasin 1-13 well, in Oklahoma… Read more
8.03am: On the Beach flags strong travel demand, sticks to guidance
On the Beach Group PLC has said demand for holidays continues to “buck wider UK consumer trends” and backed guidance for the year.
Adjusted pre-tax profit remained on course to match company-compiled consensus estimates for £38.2 million, the group said ahead of its annual meeting on Tuesday.
Total transaction value had grown by 10% year on year in the period between October 1 and February 25, it added, aided by an 18% jump in winter bookings.
Forward bookings meant total transaction value was on course to climb 17% between March and June, leaving summer 2025 set to be “significantly ahead” of last year.
“On the Beach's enhanced strategy, coupled with its asset-light, low fixed-cost operating model with no committed inventory to fill, naturally mitigates the wider inflationary macro pressures experienced,” the company said.
Chief executive Shaun Morton added demand for city breaks, particularly to Amsterdam, Paris and Krakow, had been strong, as marketing boosted bookings to the Republic of Ireland.
7.41am: Smith & Nephew says turnaround to shine through ahead
Smith & Nephew PLC has laid out expectations for ramped-up trading in 2025 as its transformation plan kicks in despite ongoing woes in China.
Revenue climbed 4.7% to US$5.8 billion in the year to December 31, the medical equipment maker said Tuesday, aiding an 8.2% increase in trading profit to US$1.1 billion.
Trading margin widened from 17.5% to 18.1% in the meantime, with Smith & Nephew forecasting a further “step-up” ahead on chief executive Deepak Nath’s turnaround plan.
Trading profit margin should sit at 19.0% to 20.0% in the year ahead, the company said, as revenue climbed by 4.8%.
“We have made solid progress fixing the foundations,” Nath commented, “this will be the year when transformation starts to unlock substantial value for our shareholders”.
Smith & Nephew has come under pressure from activist investor Cevian and warned on profit last time out.
Turnaround efforts have centred around productivity improvements and rebuilding momentum in the likes of its hip and knee implants, as well as robotics and trauma wings.
The fourth quarter, when revenue grew 7.8% to US$1.6 billion, marked a “strong end” to the year, it said, despite “sector-wide headwinds,” including in China, where improvement was expected in late 2025.
7.12am: FTSE 100 eyes gain
Futures had the FTSE 100 by ticking up seven points ahead of Tuesday’s open, after the index gave up a gain in Monday’s session to end up just below the mark at 8,658.
Takeover talk had dominated a quiet start to the week, with Wood Group PLC firming up an approach from Dubai-based Sidara and Chemring Group PLC reportedly in Bain Capital’s sights.
Overnight, Asian markets broadly moved into the red following a largely negative session on Wall Street.
Though the Dow Jones finished slightly higher, the Nasdaq shed 1.2% as the S&P 500 slipped 0.5% on lingering fears of the impact of president Donald Trump’s tariffs.
5.00am: Tuesday's schedule
Retail sales data will be in focus on Tuesday, alongside results from the likes of Smith & Nephew and Croda International.
Smith & Nephew's full-year figures come hot on the heels of a profit warning... Read more
Announcements due:
Trading updates: Jadestone Energy PLC
Interims: Avation PLC, City Of London Investment Trust, dotDigital Group PLC, Feedback PLC, McBride PLC
Finals: Croda International PLC, Smith & Nephew PLC, The Renewables Infrastructure Group Ltd, Uniphar PLC, Unite Group PLC
US earnings: Keurig Dr Pepper, The Home Depot, AMC Entertainment, Intuit, Lemonade, Lucid Group
AGMs: Bankers Investment Trust PLC, Cel AI PLC, On The Beach Group PLC, Victorian Plumbing Group PLC
Economic announcements: CBI Distributive Trades (UK), House Price Index (US)