- FTSE 100 falls 60 points
- Rachel Reeves and FCA announce financial reforms
- Barratt Redrow subsides on softer outlook
- B&M sinks to all-time low on slow sales
4.58pm: FTSE sees muted close
The FTSE 100 briefly surged above 9,000 points for the first time, reaching a record intraday high of 9,016.98, but then retreated to close down nearly 60 points (0.66%) at 8,938.
The pullback was driven by stronger-than-expected US inflation data, which lowered expectations for near-term Federal Reserve rate cuts. Despite this, investor sentiment remains positive, buoyed by the index’s overall resilience and long-term growth prospects.
4.17pm: FTSE 100 tumbles from milestone
The FTSE 100 has tumbled over 50 points or 0.6% to 8,942 since New York trading began.
Sterling is down against the dollar, which has strengthened against most currencies since the US inflation print led to traders reassessing the prospects of a Fed interest rate cut soon.
US CPI accelerated for a second consecutive month, reaching its highest level since February.
The pound fell 0.25% to below $1.34, while the euro dropped over 0.4% to $1.16 for the first time in almost three weeks.
"European and US stock indices, which began the day on a strong footing, lost some of their lustre amid rising US inflation, despite core inflation increasing slightly less than expected," said Axel Rudolph, analyst at IG.
Sentiment has also been hit by a 17% decline in JPMorgan Chase quarterly profits and Wells Fargo lowering its full-year net income guidance, he adds.
"While gold, silver and copper prices were little changed on the day, the crude oil price fell for a second straight day as traders distrusted US President Trump's new tariff threat on Russia."
4.03pm: FTSE 9000? Roll on 10,000
The FTSE 100’s break above 9,000 is mainly down to diversification away from US markets, says market analyst Neil Wilson at Saxo, as well as the favourable trade deal struck with the US.
"The interesting thing is that we’ve hit 9,000 as sterling has seen a big rally against the dollar this year – magnifying the relative performance between UK and US equities," he says.
Attractive relative valuations (the UK at 13 times earnings versus the US at 22 times "starts to look appealing" after the UK's significant de-reating since 2016 to its lowest in relative terms in 30 years) and strong dividend yields ("the highest in developed markets") are an attraction of the Footsie, while its strong representation in sectors like defence, mining, banks and precious metals has helped driven gains, with stocks like Rolls-Royce, BAE, Babcock and Fresnillo surging this year, with the index's wide global earnings base (about two-thirds of earnings are derived from abroad) offering resilience amid a tougher macro backdrop, backed by strong cash flows.
Though UK fiscal risks remain (is "domestic weakness is enough to pull down the index – I think that is unlikely to be a major problem, but we should note that pressure on gilts could cloud some judgments about the UK market"), Wilson sees the index as a value and income haven.
Overall, he says the FTSE 100 has "attraction from a value, income and defensive perspective given the volatility we have seen and changed macro backdrop and assumptions about US exceptionalism... 10,000 here we come".
3.53pm: BoE rate setter says inflation 'still a challenge'
Bank of England policymaker Catherine Mann has said that inflation pressures are still a key concern for the Monetary Policy Committee even if there has been growing slack in the jobs market, as Governor Andrew Bailey said yesterday, with pay growth easing.
"We have seen wage rates come down, so people are getting wage increases, but not at the rate in the past," Mann told Business in Wales, per a Reuters report.
"And we’ve seen price inflation come down quite a bit, but it’s still a challenge because it’s still well above our 2% objective."
3.24pm: FTSE 100 falling
The FTSE 100 has been tumbling since Wall Street opened.
All of the top 20 largest stocks are in the red, apart from BP and London Stock Exchange.
Among the very largest, AstraZeneca is down 1.6%, Unilever 1.5%, Rio Tinto 1.5% and GSK 1.4%.
3.16am: BBC funding down
The BBC's annual report revealed that 23.8 million households paid for a licence last year, down 0.3 million from a year earlier.
Amid talks with the government to renew the charter, including changes to the licence fee, Samir Shah, chair of the broadcaster, said in the report that it is a "moment of real jeopardy for the sector".
"The fight is on, and it is vital we now think very carefully about the kind of media environment we want for the UK," Shah said.
He said the BBC board is "clear that we want to make sure we protect the BBC as a universal service and help it not just to survive, but thrive, for a generation and more".
2.55pm: Mixed start for US stocks
A mixed start for Wall Street, with the Dow Jones down 0.2% but the Nasdaq Composite rising 0.6%.
The S&P 500 is in between, up 0.2%, while the Russell 2000 is flat.
Chipmakers are leading gains on the S&P, with AMD, Super Micro Computer and NVIDIA top of the leaderboard, up 7.3%, 5.9% ansd 4.3%.
Finance and banks are down, led by a 6% fall for BlackRock, with Wells Fargo falling 4.7%, and State Street dropping 3.6%.
More thoughts on US inflation, this time from James Knightley, economist at ING, says the CPI showed "some evidence of early tariff impacts," but weak housing costs and falling car prices offset this.
The June consumer price inflation report showed a 0.287% month-on-month reading for June.
"The details show that there was some scattered evidence of early tariff impacts on some goods components – mainly fresh fruit & vegetables, household appliance, toys, clothing and sporting goods, but this was offset to a large extent by softness in the all-important shelter component, which has an approximately 40% weighting within the core CPI basket."
While core CPI coming in at 0.2% versus the 0.3% expectations "may give President Trump an excuse to launch another salvo at Jerome Powell," Knightly said he has long suggested it would be three months from April/May before the tariffs show up in force.
"That means the July, August and September CPI reports are where we will see the potential for 0.4%+ MoM prints."
President Trump has been pushing Powell to cut rates by 200bp to 300bp immediately, and two of his appointees to the FOMC from his first presidential term, Chris Waller and Michelle Bowman, have suggested they could vote in favour of a cut as soon as the July meeting.
However, Knightly notes that the rest of the committee feels they have time to wait, especially in light of the recent firmer-than-expected June jobs report and the Fed "doesn't want to get it wrong again" after being stung by criticism when it suggested the post-pandemic supply shock price hikes would be "transitory", only for inflation to hit 9% in 2022.
Nonetheless, interest rate cuts "will eventually come", he says, with the cooler growth environment with a softer jobs narrative and weakening wage pressures to "help ensure that inflation is indeed temporary" and the Fed likely to be "much more comfortable with cutting interest rates from the December FOMC meeting, kicking off with a 50bp move".
2.16pm: Tariffs are affecting US prices
Tariff costs are "strikingly visible" in June’s CPI data, says Samuel Tombs at Pantheon Macroeconomics.
"Core goods prices, excluding autos, rose by 0.5%, the most since June 2022," he points out, with prices rising especially sharply for goods which are primarily imported, and less quickly for those that are mainly made in the US.
"For instance, appliance prices leapt by 1.9%, sports equipment prices advanced by 1.8%, toy prices also jumped by 1.8%, and video and audio product prices increased by 1.1%.
"Mobile phones are one of two major outliers, as they remain exempt from tariffs.
"New vehicle prices also have been unresponsive to tariffs so far, falling by a further 0.3% in June. But increases in list prices by some auto manufacturers towards the end of June suggest prices will jump in July."
1.47pm: US CPI
US CPI inflation rose 0.3% in the month of June, as expected, with core CPI increasing 0.2%, below the consensus forecast of 0.3%.
Year on year, the consumer price index was up 2.7%, or 2.9% for core CPI.
1.38pm: Reeves needs to deliver more to save London stock market
A report from the Confederation of British Industry (CBI), published ahead of Rachel Reeves' Mansion House speech, highlights how the UK’s stock market finds itself at a critical crossroads.
It highlights a steady decline in public markets that many experts say demands urgent government action, with several worrying trends outlined: fewer companies listed on the London Stock Exchange, shrinking liquidity, and fading investor interest, particularly in small and mid-cap stocks.
This ongoing contraction risks undermining London’s status as a global financial hub and threatens to cut off vital capital for British businesses aiming to grow and innovate.
While Reeves has already shared some proposed reforms earlier today, the CBI also called for revisions to stamp duty on share deals, changes to pension rules, other means to expand ISAs to boost retail investment, and launching a UK-focused investment fund to support the growth of private companies and strengthen the IPO pipeline.
Industry insiders see the British Business Bank as a natural body to manage such initiatives.
12.34pm: Reeves' proposals pre-launched as Leeds reforms
Ahead of the Mansion House speech at 9pm tonight, Rachel Reeves has announced various measures today, called the 'Leeds reforms' as they are being announced in the Chancellor's constituency city.
As well as the mortgage rule changes mentioned below and the FCA's alterations to the prospectus regime to make it cheaper for companies to list in London, other efforts to boost investment in the UK have been confirmed.
There will be a new advertising campaign to try and try to encourage more retail investment, which will be run by the industry with support from the FCA and HM Treasury, while banks will also be encouraged to "send investment opportunities" to savers who have cash sitting in low-interest accounts.
Businesses will be "welcomed to the UK with open arms" and there will be a "drastic" cutting of "unnecessary financial red tape that stalls inward investment".
Long Term Asset Funds (LTAFs), new funds designed to better allow investment in private and illiquid assets, will be included in stocks and shares ISAs from next April.
A new 'concierge service' within the Office for Investment will aim to "harness UK networks globally to actively court international financial services companies, creating a one-stop-shop to promote the UK and provide tailored support to help businesses plan where to invest based on their needs".
"We fixed the public finances and stabilised the economy. Now we need to double down on our global strengths to put the UK ahead in the global race for financial businesses," Reeves said in a speech to finance industry leaders in the Yorkshire city.
12.02pm: European markets flat, US futures mixed but Nvidia surges
The FTSE 100 is down a handful of points, while the FTSE 250 is up 115 points or 0.5%.
Mainland European markets are flat now, while US futures are mixed, with the tech-powered Nasdaq up but the Dow Jones flat.
"Investors seem to be climbing a ‘wall of worry’ as sentiment remains fragile," says market analyst David Morrison at Trade Nation.
"Structural economic concerns persist as GDP flatlines, investment remains sluggish and public debt has ballooned to nearly 100% of GDP.
"All eyes will be on Chancellor Rachel Reeves’ Mansion House address this evening, which is seen as a pivotal moment for her to lay out her growth strategy and policy priorities."
The earlier upbeat tone in Europe has disappeared, despite reports that Brussels would not be launching retaliatory measures in order to try and find a deal with Washington ahead of the 1 August deadline.
Bitcoin has pulled back from highs at the start of the week, with a 3.9% fall to $117K.
"The retreat appears to be driven by profit-taking rather than any shift in broader sentiment," says Morrison.
"Other tokens followed Bitcoin down, although the overall tone in crypto markets remains constructive for the bulls. Still, with Bitcoin once again failing to break cleanly, and then hold, above the $118–120,000 region, traders may become cautious about chasing further upside."
On US markets, he says tech stocks are leading the futures gains, with exceptional strength across chipmakers as Nvidia is up over 4% in premarket deals as the company said the US government had approved sales of AI chips to China after blocking them three months ago.
US CPI inflation data is due at 1:30pm London time.
11.39am: Electric car grant
Overnight, Transport Secretary Heidi Alexander announced a new grant of £3,750 for electric cars.
She announced a £650 million grant scheme for the electric car grant, with car manufacturers able to apply through the scheme from tomorrow.
Drivers able to benefit from discounts as soon as manufacturers successfully apply for their zero emission cars to be part of the grant scheme, with funding available until the 2028 to 2029 financial year.
"With drivers citing upfront costs as a key barrier to adoption, the grant will narrow the upfront cost between petrol and electric vehicles, giving thousands more drivers access to savings of up to £1,500 a year in fuel and running costs compared to a petrol car.
"The discount means that zero emission cars are now cheaper to buy and run than ever before and comes on top of preferential tax rates, delivering real savings for working families," the Department for Transport said.
11.21am: BlackRock earnings beat
US investment colossus BlackRock Inc (NYSE:BLK), owner of the iShares exchange-traded fund arm, has published earnings modestly ahead of Wall Street forecasts.
Assets under management ended June at $12.53 trillion, above the $12.31 trillion expected by analysts.
Adjusted earnings per share same in at $12.05, up 16% on a year ago and well above the $10.87 consensus estimate.
Net inflows of $152 billion have been attracted so far in 2025, led by a record first half for iShares ETFs, alongside private markets and cash net inflows.
10.37am: Pfizer data backs AIM-listed company's biopsy tech
A big mover on AIM this morning is Oxford BioDynamics PLC (AIM:OBD), whose shares jumped 66% after Pfizer published data confirming the effectiveness of the company’s EpiSwitch blood-based biomarkers in monitoring tumour status and treatment response in bladder cancer patients.
The findings, featured in the journal Cancers, showed that EpiSwitch biomarkers strongly correlate with the immune profiles of tumours, distinguishing between high and low immune activity, key factors in guiding cancer treatment.
Unlike traditional tissue biopsies, EpiSwitch offers a less invasive way to assess a patient’s immune response, potentially helping doctors identify those most likely to benefit from specific therapies.
Elsewhere, Cirata PLC (AIM:CRTA) fell 19% despite a strong first-half performance marked by 58% year-on-year growth in total bookings and a 244% surge in its core Data Integration (DI) business.
The sharp decline in share price reflected investor disappointment over a 53% drop in bookings during the second quarter compared with the previous year, signalling uneven sales momentum.
10.06am: Reeves loosening rules for mortgages
Ahead of her Mansion House speech this evening, Chancellor Rachel Reeves is expected to encourage banks and building societies to loosen their lending rules to help people on lower incomes buy a home.
Reports suggest she will make the announcement in an event in Leeds ahead of her speech in London.
Lenders will be allowed to provide more mortgages that are more than 4.5 times the borrower's annual income, with the current rule that these can only make up 15% of their mortgage book being extended.
This is on top of the recent announcement from the Prudential Regulation Authority enabling lenders to increase high loan-to-income lending.
Yesterday, Nationwide Building Society announced that it was easing the criteria for its Helping Hand mortgage boost, where it lends up to six time income, following the PRA review.
The building society has applied to the PRA to expand high LTI lending, which it says it expects to help 10,000 more buyers annually.
Nationwide said individuals with a £30,000 salary can now apply for the mortgage, down from £35,000, as can joint applicants with a £50,000 combined salary – down from £55,000.
9.33am: BoE announces changes
The Bank of England has pushed back the implementation of new, global 'Basel 3.1' rules on banks' trading activities by one year to 2028, as it waits to see what the US and other major economies will do.
In an announcement this morning, the central bank said it was presenting a "package of measures designed to maintain stability in the financial sector while offering new growth opportunities for mid-sized banks and building societies".
This included an easing of capital requirements for mid-sized banks. It is raising the asset thresholds that determine whether a firm must meet the minimum requirement for 'own funds and eligible liabilities' (MREL) to £25-40 billion, from the previous threshold of £15-25 billion.
"This will provide greater clarity and flexibility on whether a firm will need a transfer or bail-in strategy, with the former no longer needing to hold MREL above minimum capital requirements."
That move had been expected, according to Reuters, although some lenders were hoping for a more generous tweak from the BoE.
Dave Ramsden, deputy governor, said the changes came after the BoE "considered and reflected industry feedback".
9.02am: FTSE 100 flat, European markets up
It's a funny morning for the FTSE 100, it's broken a new record intraday high, topping 9,000 for the first time ever, but has also dropped into the red a few times.
Currently the index is up one point at 8,999.
A decline of 9% for housebuilder Barratt Redrow, which has also undermined several sector peers, is holding the index back.
Precious metals miners and defence suppliers are also a drag, with Fresnillo and Endeavour Mining down 3.4% and 1.1%; while Babcock International and BAE Systems slipping 2% and 1.4%.
Retailers are in the red too, with Kingfisher down 1.3%, Next falling 0.9%, followed by JD Sports and M&S.
Wider European markets are generally higher, with Germany's DAX and France's CAC up 0.4% and 0.3% to recover from small falls yesterday.
Hopes of a trade deal between the US and the EU are lifting the mood, says Victoria Scholar, head of investment at Interactive Investor, who hails 9,000 as a "psychological level" that was broken.
As flagged below, Rachel Reeves is preparing to deliver her closely watched Mansion House speech tonight, when Scholar says she is anticipating a series of financial reforms, including measures to improve mortgage access.
8.36am: B&M disappoints again
Among the mid-caps, B&M European Value Retail SA (LSE:BME) is a big faller, down 11.7% after a trading update for its first quarter.
A 4.4% rise in revenue was reported for the 13 weeks to 28 June, though average selling price deflation impacted trading margins.
UK like-for-like sales were up 1.3%, driven general merchandise demand during April, aided by favourable weather and Easter timing. Garden, toys and DIY performed well, though deflation in average selling prices weighed on gross margins.
The company said new ranges with higher bought-in trading margins will begin to offset this pressure from the second quarter.
Analyst Adam Cochrane at Deutsche Bank says: "B&M has managed to disappoint again with UK LFL +1.3%, which is below the investor bar of 2-3%, and total sales growth of 4.7% implying a smaller space contribution than expected as well despite 18 gross (10 net) store openings."
"The Easter benefit was not quantified (which it was last year when it was a drag) and this likely put 'underlying' LFL to flat at best and likely negative for May and June."
8.13am: FTSE trots past milestone, but builders are millstone
The FTSE 100 has surpassed the landmark level of 9,000 for the first time in the first trades of the morning.
It rose around 15 points to 9,016 initially, but has since slid back to
Experian PLC (LSE:EXPN) is top of the tree, up 3.5% after reporting a solid start to its financial year, with total sales up 12% and organic growth of 8%, an acceleration on the 7% organic seen the prior year.
Standard Chartered, WPP Group and Ashtead Group are next in line, all up over 1%.
But a 12% fall for Barratt Redrow PLC (LSE:BTRW) has dragged other housebuilders onto the downside.
Persimmon is down 4%, Berkeley Group and Taylor Wimpey have dropped over 2%.
Analysts at Stifel say Barratt's outlook comments are "softer than expected", with site numbers now seen flat for the coming year, whereas it had seen growth before.
"The change is due to planning difficulties. New volume guidance is 3% below where consensus is for FY26," they added.
7.53am: NatWest sells Permanent TSB stake
NatWest Group PLC (LSE:NWG) has raised €126 million by selling its 11.7% stake in Permanent TSB Group in a placing with institutional investors.
NatWest said the disposal will have "an immaterial impact" on its CET1 capital ratio and its tangible net asset value per share.
PTSB is an Irish retail and small business lender, and not related to the UK's TSB Bank, which Santander agreed to buy earlier this month for up to £2.9 billion.
7.46m: Barratt Redrow says profits in line with forecasts
Barratt Redrow PLC (LSE:BTRW) has put out a year-end trading update, saying it expects adjusted profit before tax to be in line with market expectations despite the market remaining what it calls "challenging".
A total of 16,565 home sales were completed in the year to 30 June, slightly below guidance, impacted by weak demand in London, though the average selling price increased to £344,000, compared to £323,000 aggregated before the merger.
The group confirmed £69 million in cost synergies from the Redrow acquisition, ahead of its original target, while net cash of £772 million was also ahead of expectations.
Forward sales at year-end stood at £2.9 billion, with
For the coming year, completions are expected to rise to between 17,200 and 17,800, including 600 from JVs.
7.34am: Retail sales uptick
UK retail sales growth picked up last month for both food and non-food chains as warm weather, summer promotions and sporting events helped drive demand.
Total sales in June grew 3.1% compared to the same month a year ago, according to the BRC-KPMG retail sales monitor, following growth of 1% in May.
Food sales grew by 4.1%, up from 3.6% the month before, as grocers continued to increase prices.
Non-food sales, meanwhile, increased 2.2% to bounce back from a 1.1% decline in May.
7.21am: Reforms to listing costs for London firms
So, a bit more information on those reforms from the Financial Conduct Authority, which were released overnight.
The reforms aim to cut costs and ease fundraising rules for UK companies, including raising the prospectus threshold for secondary share issues from 20% to 75% of existing share capital.
The changes also shorten IPO timelines, simplify corporate bond issuance to retail investors, and establish a new Public Offer Platform for growth companies seeking over £5 million.
Simon Walls, executive director of markets at the FCA, say the changes "enable a broader investor base for growing businesses" and are "the latest in a programme of reforms shifting the balance from pre-emptive checks to market disclosures".
7.15am: FTSE 100 to break through 9,000 milestone
The FTSE 100 is anticipated to break through the 9,000 barrier on Tuesday, after finishing at an all-time closing high the day before.
After ending the first day of the week up almost 57 points higher at 8,998.06, futures for the London's blue-chip index are up another 20 points ahead of the opening bell.
US stocks closed marginally higher overnight, with the small cap Russell 2000 leading the way with a 0.7% gain, followed by a 0.3% improvement for the Nasdaq despite its three largest names, Nvidia, Microsoft and Apple, all retreating slightly.
The Dow Jones advanced 0.2% and the S&P 500 added 0.1%.
Asian stocks are mostly higher this morning, with Shanghai's domestic Chinese index the only one in red.
Back in London, the day starts with news that the City watchdog has confirmed a set of reforms that it says will save London-listed companies around £40 million a year. More on that shortly.
Also, there's sales data from the British Retail Consortium, showing a 3.1% increase in June compared to a year earlier. More on that in sec too.
Finally, the government has announced a grant of up to £3,750 on electric cars.
6.15am: FTSE 100 Live on Tuesday 15 July
Barratt Redrow PLC (LSE:BTRW) will be among several FTSE 350 companies reporting on Tuesday, as the London and New York reporting seasons both kick into gear.
The key focus for the housebuilder will be on current trading and the full-year outlook, along with comments on the market, where recent developments have included the £100 million settlement paid by the industry to end a competition investigation, reports that Chancellor Reeves is launching a new mortgage guarantee scheme to go with recent announcements about support for affordable housing funding and planning relief, while house prices have been in a summer lull.
A profit warning from smaller rival MJ Gleeson led to sector shares subsiding, but a more recent update from mid-cap Bellway settled nerves, nudging up guidance for completed sales and average selling prices.
A quarterly update from B&M European Value Retail SA (LSE:BME) will be the first under new CEO Tjeerd Jegen, with some analysts lifting their expectations based on recent industry data.
Citi said early first-quarter figures pointed to a return to positive like-for-like growth for the discounter, with till roll data suggesting UK total sales up around 9% year on year for the first 11 weeks of the quarter.
Elsewhere, Chancellor of the Exchequer Rachel Reeves will deliver her Mansion House speech, where urgent reforms are needed to halt UK stock market decline, the CBI has warned.
Other changes revealed in the speech are not expected to include tweaks to cash ISAs, as Reeves seemed to have become dissuaded from this move, though she may use the speech next week to outline plans for pensions and long-awaited details of the government’s growth and competitiveness strategy.
Over in New York, quarterly results from big banks and investment groups before the opening bell in New York are the signal that US earnings season is now underway.
This includes Citigroup, JPMorgan Chase, Wells Fargo and Bank of New York Mellon, along with other financial sector giants BlackRock and State Street.
Announcements expected:
Trading updates: Atalaya Mining Copper, Barratt Redrow, B&M European Value Retail, Experian, IntegraFin Holdings, NCC Group, Robert Walters, SSP Group
Interims: RM
Finals: Brickability Group, Northern Bear, Sosandar
Overseas earnings: BlackRock, Citigroup, JPMorgan Chase, Wells Fargo, Bank of New York Mellon, State Street, Omnicom (all US pre-market)
Economic announcements: BRC Sales Monitor (UK), GDP (CHN), Retail Sales (CHN), Unemployment (CHN), Industrial Production (EU), Inflation (US), Redbook (US), API Crude Oil Stock Change (US)