- FTSE 100 adds 13 points at 9,221
- Oil giants Shell and BP lifted by oil rebound
- Phoenix falls despite solid-looking results
5.02pm: FTSE 100 gains
The FTSE 100 finished the day 13 points higher at 9,221.
Meanwhile, signs of political instability continue to boost the appeal of crypto assets, according to IG chief market analyst Chris Beauchamp.
“August ended on a weak note for crypto assets, but the first week of September has seen some stabilisation, or at least an end to the selling for the time being,” Beauchamp said.
“Bitcoin, a big loser last month, albeit from a record high, has moved back above $110,000, and continues to hold above it, while ether has been supported around $4,200.”
3.49pm: Trump bringing tech and finance bosses on UK state visit
Nvidia boss Jensen Huang will accompany Donald Trump on the US President's state visit to the UK next week, along with OpenAI boss Sam Altman, and the bosses of financial giants BlackRock and Blackstone.
This is according to Sky News, which says all the CEOs are expected to attend the state banquet hosted by King Charles III at Windsor Castle.
Apple boss Tim Cook has been invited but his attendance was not confirmed, while JP Morgan chief Jamie Dimon turned down the trip due to a previous commitment.
The presence of these high-profit business figures will "fuel expectations that a wave of corporate deals and investments in the UK will be unveiled" on the trip, the report said.
3.13pm: UBS reckons Phoenix not yet fully risen from the ashes
Shares in Phoenix Group are down over 7% now, with some hefty profit taking after some analysts have seen things that might make some observers more cautious about the outlook.
While analysts at Panmure Liberum described it as “a good set of earnings across the key metrics that matter”, UBS has flagged that total cash generation of £784 million came in 3% below consensus.
Reported net profit also swung to a £156 million loss versus expectations for a modest gain.
The group’s Solvency II ratio beat forecasts, but the Swiss bank said this was largely driven by one-off factors.
Lower annuity volumes and the prospect of further negative economic variances in the second half "could drag".
2.55pm: Mixed start for US stocks, UK blue-chips in the red
It's been a mixed start on Wall Street, with the Dow Jones down 0.1%, but the S&P 500 up 0.2% and the Nasdaq Composite rising 0.7%.
Top of the Nasdaq 100 is Applovin, jumping almost 11%, follwing it being added to the S&P 500, along with Robinhood.
Broadcom is up 4.5%, Palantir Technologies, NVIDIA are up either side of 2%.
Holding back the Dow are 1%-plus falls for Verizon, 3M, Amgen and Merck.
Back in London, the benchmark index is in the red now, with Phoenix down 7.1%, Diageo, Airtel, M&G, Games Workshop and Haleon leading the declines.
12.22pm: FTSE loses momentum
The FTSE 100 is losing what little momentum it had in the morning, now almost flat.
London's mid-caps are not going the same way, up 0.5%, though they have dipped a little duringh the past 20 minute period.
Similarly, the German DAX is up 0.6% and France's CAC 40 0.4% despite the imminent collapse of the country's minority government.
US futures are slightly in the green, with the S&P 500 expected to rise 0.2%, the Nasdaq 0.4% and the Dow Jones 0.15%.
11.29am: Gold surges past $3,600
Gold miners are back on the front foot as the price of the yellow metal surged to a new record high above $3,600 an ounce.
After climbing above $3,500 for the first time last week, the price of gold rose 0.7% to top $3,620 on Monday morning.
The metal has now added $1000 an ounce since the start of the year.
"There has been a slew of factors supporting the gold price, including Trump’s attack of Fed independence and a meeting between major BRIC nations China, India and Russia," says analyst John Meyer at SP Angel.
"This coincided with additional buying from central banks, with China continuing to add and India boosting holdings in favour of US Treasuries."
Fresnillo is up 1.9% on the FTSE 100, one of the main risers, while Endeavour Mining is up 0.9%.
On the FTSE 250, Hochschild Mining has gained 4.5%.
11.05am: M&S upgraded as younger customers come onside
Marks and Spencer Group PLC (LSE:MKS) shares have been lifted by an upgrade from Citi, based on apparently under-appreciated structural tailwinds.
With the shares 18% below the level pre-cyber attack, the US bank sees "an attractive entry point for a business with good underlying momentum".
In fashion, data suggest M&S is gaining share with younger customers, while in food, forecasts suggest a larger mix of ‘bigger baskets’ is driving share gains as analysts reckon the group is benefitting from trading down from restaurants.
10.16am: New London IPO incoming
Consumer beauty devices provider Beauty Tech Group has unveiled plans to float on the London Stock Exchange’s main market, with a registration document published today, with Berenberg acting as sponsor and bookrunner of the initial public offer, and joint financial adviser with Rothschild & Co.
The Cheshire-based company develops professional beauty technology used in spa settings for use at home, and generated £101.1 million of revenue and £22.9 million of adjusted EBITDA in 2024.
In a detailed announcement from parent company Project Glow Topco Ltd, founder and CEO Laurence Newman said the group has "established itself as a global leader in the fast growing at-home beauty market", and a London listing "will provide us with access to capital, and enable us to raise awareness and incentivise staff to take the business to the next level".
A new independent non-executive chair has been appointed in the shape of Elaine O'Donnell, a former Ernst & Young partner who has also chaired Games Workshop and sat on the board of Gym Group and On The Beach.
9.54am: Spurs bid not planned, says Staveley's PCP
PCP International Finance, the investment vehicle for Amanda Staveley, the former joint-owner of Newcastle United, said in an RNS statement this morning that there is no intention to make a bid for Tottenham Hotspur.
This follows chairman Daniel Levy's departure last week.
Sky News had reported on Sunday that Staveley had been in talks with prospective backers of a bid for the club in recent weeks.
The statement notes that under the UK takeover code, PCP and any person acting in concert with the vehicle could come back with a bid if someone else makes a firm offer or through some other material change of circumstances.
9.20am: Phoenix and other movers
On Phoenix Group Holdings PLC (LSE:PHNX), which is down almost 6% now, despite what analysts at Panmure say is "a good set of earnings across the key metrics that matter".
Margins increasing across both pensions & savings and annuity segments and a strong balance sheet, the broker forecasts the 'jaws' between free cash and dividends should expand, resulting in a cumulative excess cash position by 2027, even after allowing for further debt reductions.
"This provides management with the option to increase capital distributions, reinvest for growth, or both."
Outside the FTSE 100, some other smaller movers.
Smallcap Roquefort Therapeutics PLC (LSE:ROQ) soared 51% after the biotech agreed terms to buy Coiled Therapeutics, a US clinical-stage company, in a £30 million all-share deal.
In the same wider sector, Hemogenyx Pharmaceuticals PLC (LSE:HEMO) jumped 19% after announcing a manufacturing partnership to advance its experimental CAR-T therapy for acute myeloid leukaemia.
Retailer TheWorks.co.uk PLC (LSE:WRKS) fell 7% as worries over a tough consumer backdrop overshadowed signs of progress at the discount books and crafts chain.
Away from London, Ryanair has been downgraded by Goldman Sachs, saying it now sees the outlook as "more mixed relative to consensus".
8.58am: Politics in focus for markets
"Political uncertainty is making waves on markets at the start of the week, but sentiment remains largely upbeat as investors take on a glass half full attitude," says Susannah Streeter, head of money and markets at Hargreaves Lansdown.
The Footsie is up 11 points or 0.1%, while in mainland Europe the DAX has gained 0.7% in Frankfurt, while in Paris there is a gain of 0.25%.
She notes that the resignation of Japan’s PM "caused ructions", with the yen diving on the news, stocks making sharp gains and government bond yields rising again.
"Investors are speculating about what a change at the top would bring for government policy. There’s an expectation that front-runners, in particular Takaichi Sanae would be more pro spending and deregulation, aimed at supporting the economy amid the pressure on exports from US tariffs.
"The economy is holding up better than expected, with higher consumer spending providing a boost but there is still concern about the path ahead."
In France, PM Francois Bayrou is largely expected to lose a confidence vote, which would mean President Macron will be forced to name the fifth prime minister in less than two years.
Closer to home, Keir Starmer "will be hoping the large cabinet reshuffle will quell concerns about his authority and close a highly difficult political chapter", says Streeter.
"Gilt yields eased back after the big moves were made, with some relief that Chancellor Rachel Reeves’ position appears secure.
"The government is attempting to move the narrative back to policy delivery and a longer-term boost to growth."
Today's news is the launch of the Defence Industrial Strategy to provide the skills which the forces and military contractors will need to meet the UK’s commitments, while new business secretary Peter Kyle is getting ready fly to China this week after being promoted in the first leg of the government reshuffle.
8.31am: Bumper week of macro events
It's "another bumper week of events", says Deutsche Bank's Jim Reid, building to next week's Federal Open Market Committee meeting.
"Although the Fed is now on its media blackout, Wednesday's PPI and especially Thursday's CPI will shape pricing ahead of that, with all eyes still focused on the tariff impact."
As mentioned below, a quarter-point cut is fully priced by the market, but Reid says there's not much expectation for a 50bps move.
"Our economists believe you’d need to see pretty weak inflation this week to get that."
The main highlights for the rest of the week, he says, are today's French confidence vote in the National Assembly, German industrial production and the New York Fed’s inflation expectations also both today; the preliminary annual benchmark revisions of US payrolls tomorrow; Chinese inflation, the State of the Union address by European Commission President von der Leyen, and a 10yr US Treasury auction on Wednesday; the ECB decision and a 30yr UST auction on Thursday; and on Friday there’s the University of Michigan consumer confidence survey.
8.15am: FTSE 100 starts modestly higher
The FTSE 100 has started the week modestly higher, up 11 points to 9,219.
Top risers are M&S, Fresnillo and Rolls-Royce. Shell and BP are also notable risers on the back of a rebound in crude prices.
At the other end, Phoenix Group seems to have disappointed with its interim results, down 5.7%.
Consumer goods giants Unilever, Haleon and Diageo are just behind, all down over 1% and weighing on the overall move.
8am: Oil prices rebound from 1-month low
Oil companies may provide a boost for the FTSE today, as crude prices are on the rise.
This is despite the Opec+ producers cartel announcing at the weekend that they would add to their scheduled production increase next month.
However, this had been expected by the market, leading to the price of WTI oil falling 4% last week and Brent 3.8%.
This morning, Brent crude is up 1.7% to $66.6 a barrel.
7.39am: Treat board agrees to be taken over at discount to share price in July
Treatt PLC (LSE:TET), the UK-listed supplier of natural extracts and ingredients, has agreed to be acquired for £156.6 million cash by Natara Global, a company controlled by private equity firm Exponent.
Shareholders will receive 260p in cash per share, representing a 16% premium to Friday’s closing price.
However, many investors will ignore that fact and will be a bit miffed, as their board has accepted a price at a sharp discount to levels seen earlier this year, before a profit warning in late July.
The shares were trading at 320p at that point, and were as high as 450p in January and above 500p last December.
Exponent's argument is that there are "macroeconomic headwinds affecting the industry, including competitive pressures, subdued North American consumer confidence, a weaker US dollar and volatility in citrus prices", combined with some specific trading challenges at Treatt.
7.24am: US interest rates in focus after another poor non-farm payrolls
Analysts are all talking about US interest rates, with Federal Reserve fund futures now pricing about 100% probability of a rate cut at next week's meeting.
US bonds all fell to multi-week or multi-month lows after the official jobs report revealed just 22,000 new jobs were added in the economy last month.
"Many now think the Fed could cut at all three remaining meetings this year and might even pause balance sheet tightening, depending on how quickly the labour market deteriorates and whether inflation ticks up – or doesn’t," .
"For now, the weakening jobs picture fuels expectations that the Fed will not only cut rates in September but may have to cut more aggressively to shore up the labour market and compensate for what many see as a delayed response," says Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
"To me – and many others – the Fed’s wait-and-see stance on inflation amid tariff disruptions made sense, as it was hard to paint a rosy picture for the US economy in such conditions.
"But if inflation doesn’t pick up – which is highly surprising – then yes, they’ll have to lower rates to avoid political and public backlash."
This week, the US CPI data will shed some light on inflation dynamics.
7.16am: FTSE 100 expected to start higher
The FTSE 100 is expected to start the week on the right side of bed, more than recouping the small loss from the end of last week.
On the futures market on Monday, the London index has been called 34 points higher, after finishing last Friday down just under 9 points at 9,208.2.
Earlier gains were wiped out when another disappointing US jobs report led to a loss of confidence around global markets.
So Wall Street also ended the week in the red, with the Dow Jones falling 0.5%, the S&P 500 dropping 0.3% and the Nasdaq just seven points below flat.
Asian markets this morning are bathed in green, led by Japan's Nikkei, up 1.6%, after the country's prime minister resigned over the weekend.
Another PM, in France, today faces a make-or-break no-confidence vote today, while British PM Keir Starmer's position is also being examined amidst a reshuffle of his cabinet.