- FTSE 100 up 62 points at 9,777
- Euro and US markets turn from red to green
- M&S and Wetherpoon shares initially fall on results
4.59pm: FTSE 100 gains
The FTSE 100 bounced back during Wednesday’s session, adding 62 points at 9,777.
Across at Atlantic in the US, the services sector expanded in October at its fastest pace in eight months, with the ISM services PMI rising to 52.4, above the estimated 50.8. The ISM Prices Paid Index hit a three-year high, pointing to continued inflationary pressures.
On the jobs front, ADP reported US private employment rose by 42,000 in October, exceeding expectations of a 30,000 gain, suggesting steady hiring despite broader economic uncertainties.
4pm: 'Crashes don't come when everyone is expecting them'
The FTSE is just skirting a point or so below its all time high now.
"Yet another equity selloff has been stopped in its tracks," says market analyst Chris Beauchamp at IG.
“Traders who thought this unstoppable market was about to get its just desserts have been bitterly disappointed, as stock markets rebound from the selling that seemed to have such a firm grip just a few hours ago."
After Asia markets and the early European session were well in the red, this met a "wall of buying" with investors looking to take advantage of the latest dip.
"As a reminder, stocks don’t undergo crashes when everyone is expecting them," he said.
"This rally has been doubted for months, and positioning continues to be light compared to the peak in late 2021."
Helping sentiment in the US, the ADP jobs report was better than expected, and showed a recovery from last month.
This was "enough to satisfy the narrative that the jobs market remains weak and needs more support from a rate-cutting Fed. Once more, the bears find themselves shut out of the party."
3.05pm: Wall Street opens higher as chip stocks rebound
The FTSE 100 is continuing to build on the recovery seen in the late morning, now back up close to its all-time highs.
US stocks opened higher, seemingly shrugging off the nervousness seen over big tech valuations.
Out in front was the Nasdaq, up 0.4% to undo some of the 2% fall the day before. Nvidia is up 0.6%, Alphabet up 1.9%, Broadcom up 3% and Micron jumping over 6%, as semiconductor names that took a bruising the day before bounce back.
The S&P 500 rose 0.3% and the Dow Jones was up 0.2%.
2pm: City mixed opinion on ABF split
Barclays analyst have taken a quick reading of institutional client thoughts on Associated British Foods PLC's (LSE:ABF) results yesterday and the proposed split of Primark and Foods.
The market focused on EPS downgrades, weak Primark like-for-likes and muted margins, with shares down 3%.
While a Primark/Foods split is seen as "sensible, but there is a big debate as to whether there is a valuation unlock and even if there is, over what time frame".
Investor opinion is split too, with hedge funds sceptical of a valuation unlock and not fans of the timing, whereas long-only investors are more supportive, seeing the split as "a meaningful step which could improve governance and capital allocation, although they also want to see better Primark LFLs and the earnings downgrade cycle trough".
Barclays noted that sell-side analyst coverage of ABF is "almost exclusively retail analysts", (which the Barclays team says it is an exception) "so is it little wonder there is so little focus and understanding of the non Primark assets".
With negative LFLs overshadowing Primark’s strengths, until they improve, the share price may remain rangebound, Barclays said.
12.59pm: Some small and mid-cap movers
Ceres Power Holdings PLC (LSE:CWR, OTC:CPWHF) shares surged 22%, up over 500% over the past six months, after the clean energy technology firm continued its good momentum by signing up a fourth global manufacturing partner, with a licence deal struck with Chinese engine giant Weichai Power, expanding on a long-standing partnership.
Weichai will produce Ceres’ proprietary solid oxide fuel cell (SOFC) technology at a new facility in China, focusing on power systems for data centres, industrial operations and commercial buildings.
Shares in Bluefield Solar Income Fund (LSE:BSIF) rose 5% after the renewable energy investor said it had launched a full strategic review and formal sale process following opposition from shareholders to its proposed shift into an integrated power producer model.
Velocity Composites Ltd (AIM:VEL) plunged 19% after the aerospace materials supplier warned that revenue for the year to October fell short of expectations and forecast a slower 2026.
Headlam Group (LSE:HEAD) slumped 11% after the floor coverings distributor warned that trading had fallen short of expectations and full-year results would come in below forecasts.
And looking at the FTSE 250, worst of the fallers is TP ICAP PLC (LSE:TCAP), down 6.3% to a seven-month low after the world’s largest interdealer broker reported mixed trading for the first nine months of 2025, with strength in its core broking arm offset by weakness in energy markets.
Analyst Stuart Duncan at house broker Peel Hunt points out that the past quarter was "against what was a tough comparative, given market volatility in 3Q last year".
ICAP said a potential IPO of market data business Parameta continues to be assessed.
Trainline is the top riser on the mid-cap index, rebounding from recent five-month lows up 5% as the ticketing platform reported stronger-than-expected interim results and lifted its profit forecast for the year.
But while the numbers impressed, attention quickly shifted to an imminent government announcement on the long-delayed Railways Bill, which could reshape the industry’s structure.
Panmure Liberum's Sean Kealy describes the update as a “strong” set of interims, with EBITDA beating expectations by 4%, with today’s report adding "more evidence of improving profitability and operational discipline".
He says the real focus for investors lies elsewhere, with the Railways Bill and consultation response released today.
12.17pm: FTSE in green, US futures in red
The FTSE 100 has clambered out of the water again, helped by a reversal of the earlier fall for M&S and a few others.
Near the top of the leaderboard are Coca-Cola Europacific, Barratt Redrow and M&S, all of which put numbers out today.
Burberry, which put its Xmas campaign advert out yesterday, is top of the risers, up 3%.
Precious metals miner Fresnillo is bottom of the list, down 3%, along with tech investors Scottish Mortgage and Polar Capital Tech Trust, down 2.3% and 1.9%, after the sell off in New York overnight, where the Nasdaq lost 2% on the day, down 3.5% from last week's highs.
AI-related names posted losses amid concerns that valuations have become stretched, says market analyst David Morrison at Trade Nation, while the 'old-school' Dow Jones got off quite lightly, ending down 0.5%.
"But in an indication that sentiment had soured somewhat outside of tech as well, the small cap, domestically focused Russell 2000 gave back 1.8% yesterday."
The NASDAQ 100 has dropped 3.5% from the highs hit last week, but the Russell has lost 4.6% from its own record levels reached a few days earlier.
"Investors were scratching their heads initially in trying to pinpoint a catalyst for the selloff. As far as the macro environment was concerned, US Treasuries were subdued, while there were no big moves across the FX space."
The blame was ultimately laid at the door of Palantir, or its market valuation to be precise, which is many multiples above even Nvidia’s.
Sentiment towards the company, and the AI trade in general, also took a hit after it was revealed that Michael Burry, the trader whose bet on the subprime mortgage crisis featured in ‘The Big Short’, was running large short positions on both Palantir and Nvidia.
"If you remember the film, Mr Burry, as played by Christian Bale, ultimately won a fortune through shorting the US housing market. But not before he came close to losing everything as it took such a long time for his bets to play out," says Morrison.
US stock index futures are in the red this morning, with the Nasdaq down 0.3%, S&P futures down 0.2% and those for the Dow just below flat.
"The tech sector remains a focus, particularly as investors have put any concerns over the US-China trade spat to one side," says Morrison.
"But the ongoing US government shutdown means that many key data releases have been postponed or cancelled, including this Friday’s Non-Farm Payroll report, for the second month in a row.
"The Federal Reserve has made it clear that they are concerned by possible weakness in the labour market, although Chair Powell warned that another rate cut in December is not a foregone conclusion.
"So, all eyes will be on today's ADP private payroll release. If this comes in below expectations, as some analysts are suggesting, then markets may start to price back in another rate cut next month," he says.
US ISM services PMI is also out, as well as earnings reports from McDonald’s, Qualcomm, Arm and DoorDash, following AMD and Super Micro overnight.
11.34am: Bitcoin down 18% over past month as $100K level challenged
Bitcoin briefly went below the $100K level yesterday, down over 18% during the past month to levels last seen in May and June.
Simon Peters, crypto analyst for eToro says: "The latest move lower has stemmed from the recent FOMC meeting, where Chairman Powell poured cold water on the idea of a December rate cut.
"Ahead of the meeting, the market’s probability of a cut stood as high as 96%. After the press conference, this dropped drastically to less than 70% chance, highlighting the market’s risk-off sentiment shift. Crypto Fear and Greed Index has since fallen into ‘Extreme fear’ territory.
"Liquidations to the tune of $915 million since the start of November have also contributed to the recent price decline.
"While the pullback is likely to rattle some investors, volatility of this scale is not unusual."
Bitcoin has seen many sharp plunges in recent years, the last of more than 30% was between January and April, when it dropped from $109,000 to $74,500, before rallying 70% to the October all-time high of $126,300.
"Short-term catalysts such as renewed expectations for rate cuts or continued inflows into spot Bitcoin ETFs could quickly cause prices to reverse," says Peters.
Or it could fall further.
11.10am: US Supreme Court tariff hearings begin
Today marks the start of the US Supreme Court hearings regarding the legality of some of the US administration’s tariffs.
A ruling is expected before the end of the year, notes ING macro nan Carsten Brzeski.
"If the Supreme Court ruled (partially) against the tariffs, the administration would no longer be able to collect IEEPA-based tariffs and would also face demands to refund those already paid," he writes.
"The unravelling of a large proportion of Trump’s tariffs could exacerbate concerns about the state of America’s public finances.
"Investors in the bond market have already been questioning the trajectory of the country’s mounting debt.
"In order to avoid increasing public debt further, the President might have to reduce his “Big Beautiful Bill” tax deductions or find other ways to offset the budget deficit."
Since the introduction of the new tariffs, customs revenues have jumped and are estimated to have brought an additional $110 billion for the government this year.
"At the same time, the loss of IEEPA-based tariffs might not be a permanent setback for Trump’s push to reshape global trade, as sectoral tariffs would remain basically unaffected.
"It is therefore likely that if the Court were to rule against the tariffs, the US government would impose more and new sectoral tariffs, probably on pharmaceuticals, chemicals and automotives – a shift that could particularly affect the European economy.
"No matter how the Supreme Court’s ruling eventually looks, tariffs are here to stay," says Brzeski.
10.53am: PMI shows business confidence resilient
A more bearish reading on the PMI from EY ITEM Club economic spokesman Matt Swannell, though he concedes that there are some encouraging notes.
He says PMI indicates that demand from domestic customers picked up "as they've shrugged off uncertainty around the upcoming Autumn Budget, but a difficult international trading environment has seen foreign demand remain modest".
However, the services PMI has "proved to be a poor leading indicator of activity as it's overly influenced by business sentiment rather than shifting trends in activity".
But, looking to glean what he can from today's reading, Swannell says it suggests that business confidence "remains resilient ahead of the Autumn Budget, there's plenty of reasons to suggest that the economy will struggle to gain momentum".
"Households' real income growth is going to be squeezed, interest rates on some expiring fixed rate mortgages will continue to rise, fiscal policy continues to tighten, and the global economy looks set to remain soft."
On the plus side, cost pressures are starting to ease a little as companies have adjusted to April's rise in employers' NICs.
"Nonetheless, this will gradually feed through to prices and we continue to think that inflation, particularly in the more labour-intensive services sector, will be sticky."
All in all, the PMI is "unlikely to move the needle" for tomorrow's MPC decision, where Swannell and the wider market on balance expect the Bank of England to leave rates unchanged.
10.12am: PMI opens door slightly more to BoE cut
Thoughts on the UK services PMI.
"Remarkably, businesses are brushing off the spectacle of months of tax hike rumours and kite-flying from the Treasury," says Rob Wood, chief UK economist at Pantheon Macroeconomics.
He reckons this is because firms are "comforted that they will be spared the brunt of the pain this year".
The large upward revision to the final PMI from the flash reading two weeks ago suggests that "speculation of income tax hikes reduced the risks of business-focused levies".
"At the margin this release should convince the MPC that they are running only a small growth risk by waiting to see the late November Budget before cutting rates again. So we continue to expect the MPC to hold rates tomorrow and cut in December."
Wood says the most eye-catching thing, given the recent focus on jobs data, is that the PMI employment balance was revised up a "whopping" 2.2 points between the flash and final release.
"Firms are still cutting jobs apparently, but at the slowest pace since last September as adjustments to payroll tax hikes fade and firms fears of further levies fade."
The PMI also signalled slowing inflation, which Wood says "will keep the MPC doves confident that they can cut", but he says wavering voters like Governor Bailey and Sarah Breeden will be "comfortable to hold rates for another month at least".
9.54am: 'Creditable' car sales
The UK car sales data shows a "creditable month", says economist Rob Wood at Pantheon Macroeconomics, after a five-year high in September when registrations are boosted by new number plates.
"We estimate that seasonally adjusted total registrations fell 12.1% month-to-month in October after gaining 15.4% in September, leaving them up 1.5% between August and October.
"Far from rip roaring, but still trending up."
He says car registrations have caused "marked volatility" in UK GDP data this year, boosting Q1 and weighing on Q2, as buyers brought forward purchases ahead of tax hikes in April, with wholesale and retail trade and repair of motor vehicles accounting for about 1.5% of GDP.
So the 9% quarter-to-quarter rise in seasonally adjusted registrations in Q3 means output of the sector should add at least 0.1pp to quarter-to-quarter GDP growth if it is fully reflected in the ONS numbers.
9.39am: UK services PMI
The final reading of UK services PMI comes in at 52.3 for October, up from 51.1 at the 'flash' mid-month release.
This means the UK S&P Global composite PMI rises to 52.2 from the 51.1 preliminary reading.
9.16am: New car sales solid, but Budget ECOS tax warning
UK new private car registrations last month were up 2.0% year-on-year, but down from 8.9% in September.
Total registrations, including business and fleet sales, were 144,948 units in October, up 0.5% year-on-year, down from 13.7% on the prior month.
Battery electric cars took a 25.4% market share, according to the latest SMMT reprort, which flagged the latest industry outlook that anticipates the overall market to breach two million units this year for the first time since 2019.
Electrified vehicles were the only powertrain technologies to record growth, largely driven by battery electric vehicle (BEV) uptake, registrations of which rose by 23.6%, equivalent to 7,028 additional units.
The SMMT the modest growth is "at risk due to government plans to end Employee Car Ownership Schemes (ECOS)".
"These schemes play a key role in attracting top talent into UK Automotive, enabling employees to access the products they make and sell in an affordable manner.
"Government plans to make ECOS vehicles liable for company car tax would lead to the closure of these schemes, putting these vehicles out of reach for most workers and reducing a crucial supply of new and increasingly zero emission vehicles into the market."
Around 100,000 cars are year are supplied via ECOS, equivalent to around 5% of the annual new car market, so the trade body says "such a step would depress growth and seriously impact the nearly-new and used markets".
It estimates that £1 billion in revenue would be lost to industry and 5,000 manufacturing jobs put at risk, with the Treasury incurring around £0.5-billion hit from lost VAT and Vehicle Excise Duty receipts.
"The total cost would be more than double that allocated to the Electric Car Grant, effectively wiping out the growth it is intended to stimulate."
9.09am: FTSE just below flat
The FTSE 100 clambered onto dry ground for a moment but is back underwater again, down just a few points though.
Over on the Continent, France's CAC index is similarly just below flat, while Germany's DAX is down 0.5% and Spain's IBEX is down 0.4%.
Market analyst Victoria Scholar at Interactive Investor says European markets are taking their cues from the sell-off on Wall Street that spread to Asia, where stocks fell sharply "amid concerns about AI valuations".
She adds: "US futures are pointing to further declines today after Palantir fell 8% after hedge fund manager Michael Burry revealed he holds a $912 million position against the company."
In terms of data, China’s services PMI hit 52.6 in October, the lowest since July, missing analysts’ expectations.
UK PMI is out soon.
Emma Wall, investment strategist at Hargreaves Lansdown, said markets were continuing to look "spooked over AI stock valuations".
Bloomberg has estimated that a total of $500 billion wiped off semiconductor stock valuations globally.
"The concerns are valid," she says. "While a number of AI firms have benefits from strong revenue and profit growth, this has been a narrow and extreme rally."
8.38am: Spoons bending
On the FTSE 250, JD Wetherspoon PLC (LSE:JDW) shares are down 3.7% after a trading update from the pub company covering the 14 weeks to 2 November, comprising the first quarter of its financial year plus a further week.
Like-for-like sales were up 3.7%, an improvement from the 3.2% growth over the first nine weeks reported at its final results.
The company commented that it “is pleased with the continued sales momentum but is mindful of the Chancellor’s Budget statement later this month and, as a result, is slightly more cautious in its outlook for the remainder of the year”.
Analyst Douglas Jack at Peel Hunt says these are in line with the long-term average since 2001, and overall, JDW has outperformed the CGA RSM Hospitality Business Tracker for 37 consecutive months.
He says he is maintaining forecasts that assume 4.5% LFL sales over the full year, though he notes this is 1% below the City consensus.
8.12am: FTSE opens lower
The FTSE 100 has started Wednesday's trading session down 22 points at 9,693.
M&S shares are down 2.6% after its interims.
Mining engineer Weir is the biggest faller, down 4.2% after a quarterly update.
Oil giants BP and Shell are dragging, though oil prices are just below flat.
7.57am: M&S makes rapid cyber recovery
Marks and Spencer Group PLC (LSE:MKS) reported stronger first-half profits than expected, after the retailer quickly settled its insurance claim at £100 million for the cyber attack that laid it low in the spring.
The FTSE 100-listed group generated an adjusted pre-tax profit of £184.1 million in the 26 weeks to 27 September, down from £413.1 million last year as the cyber incident led to some empty shelves as systems were taken offline to thwart attackers.
Despite the attack, group sales jumped 22% to £7.97 billion.
7.35am: Will US sell-off continue?
A deeper look at last night's trading in the US, where the Nasdaq led the decline, tumbling 2%, while the S&P 500 dropped 1.2% and the Dow shed 0.5%. The small cap Russell 2000 slipped 1.6% to 2,431.
Palantir shares sank nearly 9% even after posting solid quarterly results, with analysts pointing to its rich valuation as a growing concern.
The pullback came as several major bank CEOs recently have warned of a potential market correction, adding fuel to worries that the year’s AI-driven rally may be losing steam.
After the closing bell, semiconductor group AMD beat analysts' expectations on earnings and revenue and provided strong fourth quarter guidance.
This initially lifted the stock in afterhours trading before the wider worries crept in and it fell over 4%.
Nasdaq futures are down only 0.3%, with those for the S&P down 0.1% and Dow futures up 0.1%
6.30am: Sell-off in US Big Tech ripples through global markets; Nikkei posts sharpest fall since March
London’s FTSE 100 is expected to open in negative territory on Wednesday, with spread betting firms forecasting a modest 15-point decline. The anticipated drop follows a sharp sell-off in technology stocks on Wall Street that has rattled sentiment across global markets.
Asian equities bore the brunt of the overnight declines. Tokyo’s Nikkei 225 slid 4.7 per cent by midday, marking one of its steepest losses this year. Semiconductor-linked shares led the fall, with Tokyo Electron down 6.1 per cent and Advantest off 10 per cent.
South Korea’s Kospi also came under pressure, falling 3.7 per cent. Samsung Electronics lost 4.4 per cent, while SK Hynix gave up 2.7 per cent, unwinding some of its recent gains driven by artificial intelligence development plans with Nvidia.
Chinese markets fared somewhat better. The Shanghai Composite edged 0.3 per cent lower, while Hong Kong’s Hang Seng index dropped 1.1 per cent.
The sell-off followed a decline in US stocks overnight, where investors pared back exposure to high-flying technology names.
The Nasdaq Composite dropped 2%, with Nvidia and Palantir Technologies among the biggest fallers. Palantir slid 9% despite reporting earnings that beat analyst expectations.
The S&P 500 lost 1.2%, while the Dow Jones Industrial Average fell 0.5%. Analysts pointed to profit-taking in large-cap tech shares that have led much of the market’s gains this year.
Also driving sentiment is uncertainty over the direction of US interest rates continues to weigh on sentiment.
A prolonged government shutdown has delayed the release of key economic data, leaving the Federal Reserve without the usual indicators it relies on for policymaking.
That has added to investor uncertainty around the outlook for inflation and employment.