- FTSE 100 down 11 points at 10,812
- Wall Street mixed amid inflation worries
- UK sanctions Iran
- Gilt yields hit 30-year high
That's a wrap, folks. A pretty average day was capped with a mini-lurch into the red with the blue-chip stocks index ending the session 11 points lower at 10,811.66.
3:00pm London blue-chip index edges up
The FTSE 100 edged higher on Tuesday afternoon despite a weaker opening on Wall Street, as gains in mining and energy stocks helped offset pressure from financial and healthcare shares.
The index remained supported by higher commodity prices, with oil trading close to $100 a barrel and copper strengthening on supply concerns.
Investors also remained focused on rising UK borrowing costs and this week’s US inflation data, which could influence expectations for interest rates.
Wall Street opened mixed on Tuesday as renewed Middle East tensions pushed oil prices higher and revived inflation concerns.
The Dow Jones Industrial Average fell 0.57% at the open, while the S&P 500 slipped 0.01% and the Nasdaq Composite edged 0.08% higher.
The cautious start came as investors assessed the potential economic impact of higher energy costs and awaited US inflation data later this week.
There was, however, some support from technology stocks, with Intel and Nvidia higher in pre-market trading on optimism around artificial intelligence.
Oil remains the key macro driver.
Brent was around $98.6 a barrel, having earlier reached $99.46, its highest since 24 July. The latest escalation came after Iran-backed Houthi attacks on Saudi energy facilities, while tensions around the Strait of Hormuz continue to threaten supply.
The United Kingdom has announced an expanded package of sanctions against Iran to constrain its nuclear programme and restrict hostile activities.
Foreign Office minister Stephen Doughty said the measures will reintroduce sanctions previously lifted under the 2015 Joint Comprehensive Plan of Action.
The UK's expanded Iran sanctions are significant geopolitically and include restrictions on financial services, energy, metals, gold, shipping and Iranian aircraft, with a carve-out for the Shah Deniz gas field.
Gilts are another UK pressure point.
The UK sold £4.25 billion of 30-year gilts at a record 5.8168% yield, the highest since the Debt Management Office was established in 1998, highlighting continued pressure from inflation, borrowing costs and fiscal concerns.
1:30pm Footsie still in narrow range
The FTSE 100 was broadly flat at 10,816.57 at 1pm, down 5.56 points or 0.05%, as investors weighed rising oil prices against gains in mining stocks.
The index traded between 10,778.06 and 10,848.18, compared with Tuesday's previous close of 10,822.13, while oil prices remained close to $100 a barrel amid heightened Middle East tensions.
Brent crude was around $98.47 a barrel at midday, up 1.4%, while West Texas Intermediate gained 2.5% to $93.73 after attacks on Saudi infrastructure heightened concerns over supplies.
US stock futures pointed to a weaker opening, with Dow futures down 435 points or 0.81% and S&P 500 futures down 19 points or 0.25%, while Nasdaq futures were little changed, up 0.05%.
Copper futures for December rose 1.95% to $6.8125 a pound, with tightening mine supply and expectations of new US tariffs on refined copper imports encouraging buyers to bring forward demand.
Copper's strength contrasted with weaker equity futures, highlighting the influence of supply constraints and trade policy on commodity prices, while gold slipped 0.24% to $4,401.94 an ounce.
Sterling was little changed at $1.3544, up 0.02%, after trading between $1.3520 and $1.3552.
The market is also awaiting US inflation data later this week, with the consumer price index due Friday and producer price figures on Thursday, for clues on the Federal Reserve's interest-rate outlook.
The FTSE has absorbed the morning's oil and inflation concerns surprisingly well, but the afternoon session is likely to be more about US futures, oil near $100 and positioning ahead of Thursday's PPI and Friday's CPI than about fresh UK catalysts.
11:45am London's benchmark index remains flat
The FTSE 100 was broadly flat at 10,821.06, down 1.07 points or 0.01%, as investors weighed rising oil prices and renewed inflation concerns.
Brent crude rose 1.73% to $98.68 a barrel after Iran-aligned Houthi forces attacked Saudi energy facilities, raising concerns about further disruption to regional supplies.
Brent had earlier reached $99.46, its highest level since 24 July, while West Texas Intermediate climbed to $94.73, its strongest level since 8 June.
The oil price surge has renewed concerns about inflation and interest rates, with European shares falling as investors assessed the potential economic impact of higher energy costs.
The pan-European Stoxx 600 was lower in early trading, while banking stocks came under pressure as investors weighed the risk that higher energy costs could weaken economic growth.
The pound slipped 0.11% against the dollar to $1.3526, while the euro fell 0.09% to $1.1612.
Earlier, Computacenter was among the strongest FTSE 100 performers after the IT infrastructure group raised its full-year earnings outlook following a strong first-half performance.
But in mid-morning trade, its shares fell over 3% to 5,390p.
The IT major hit 6,015p in an early rally, falling to 5,355p before recovering slightly.
The FTSE 250 was down 0.17% at 24,465.61 in early trading, with homewares retailer Dunelm among the sharpest fallers after warning that unusually hot weather had weakened sales at the start of its new financial year.
Dunelm reported annual sales of £1.83 billion and pre-tax profit of £211 million for the year to 27 June, but said trading during the first six weeks of its new financial year had been significantly softer.
Funding Circle shares fell sharply despite the small-business lender raising its full-year profit guidance, after chief executive Lisa Jacobs announced plans to step down by September 2027.
Funding Circle reported first-half revenue of £138.2 million, up 50%, while pre-tax profit rose to £24.1 million and the company announced plans for a further £25 million share buyback.
US stock futures pointed to a weaker Wall Street open, with Dow futures down about 0.9%, S&P 500 futures 0.4% lower and Nasdaq 100 futures down 0.2% as oil prices approached $100 a barrel.
Reuters said investors will continue to watch oil prices and bond yields closely as the conflict in the Middle East adds to inflation concerns and raises questions about the path of interest rates.
10:30am: FTSE 100 Live: Copper rally lifts Antofagasta as softer pound supports blue chips
London’s blue-chip index clawed back most of its earlier losses by mid-morning on Tuesday as record copper prices propelled Antofagasta to the top of the leaderboard and sterling softened against the dollar.
The FTSE 100 was down just 0.08% at 10,813.57 at around 10:30am, having been more firmly in the red earlier, while the FTSE 250 remained 0.33% lower at 24,426.99.
Antofagasta surged 2.69% to 4,003p as copper extended its record-breaking run, with three-month metal on the London Metal Exchange touching a fresh all-time high of around US$14,617 a tonne.
The rally has been fuelled by tightening supplies outside the US as metal is pulled into America ahead of possible tariffs on refined copper imports, alongside disruption to mine production. Longer-term demand from power grids, renewable energy and AI data centres is also supporting prices.
Weir Group, which supplies equipment to the mining industry, was another strong performer, gaining 2.5%, while Auto Trader advanced 2.65%, Spirax Group rose 2.22% and Coca-Cola HBC added 2.19%.
Sterling provided a modest additional tailwind for internationally exposed companies, with the pound down around 0.1% against the dollar at US$1.3527 after trading above US$1.355 earlier in the session.
On the downside, Computacenter reversed its early gains to fall 1.61% despite upgrading its profit outlook before the market opened.
Next lost 1.32%, while banks remained under pressure, with Lloyds down 1.15%, HSBC off 1.14% and Barclays 1.09% lower.
The recovery in the FTSE 100 comes despite Brent crude remaining close to US$99 a barrel, keeping inflation concerns firmly in focus after the sharp rise in energy prices earlier in the session.
9:25 am: FTSE 100 slips as oil nears US$99 and banks weigh
London stocks remained under pressure in mid-morning trading on Tuesday as surging oil prices revived inflation concerns, with banks and other domestically exposed stocks among the main fallers.
The FTSE 100 was down around 36 points, or 0.33%, at 10,786, while the FTSE 250 slipped around 0.5% to 24,386.
Banks were prominent on the downside, with Lloyds Banking Group down 2.03%, Barclays off 1.74%, HSBC losing 1.63% and NatWest falling 1.51%.
The sector was caught up in wider concerns about inflation, interest rates and the UK economic outlook as energy prices continued to climb. Longer-running speculation about possible changes to bank taxation in the October Budget remains in the background, but is not a new development on Tuesday.
Brent crude climbed 1.76% to US$98.71 a barrel, approaching US$100 as renewed Middle East tensions heightened fears of supply disruption. WTI jumped 3.01% to US$94.23. Higher energy costs have also pushed inflation risks back into focus and contributed to pressure on borrowing costs.
The oil rally provided support for energy shares, with BP gaining 1.61%. FTSE 250 constituents Harbour Energy and Ithaca Energy advanced 2.97% and 2.04%, respectively.
Auto Trader topped the FTSE 100 risers with a 2.69% gain while Computacenter remained among the strongest blue chips, gaining 2.41% after raising its profit outlook.
Copper is at an all-time high, rising 1.36% to US$6.795, helping Antofagasta climb 1.15%, while gold eased 0.61% to US$4,449.30 an ounce.
Among mid-caps, Funding Circle dropped 10.65%, and Dunelm fell 10.21%, while Johnson Service Group shed 6.96%. ME Group International led the risers, gaining 4.69%.
8.15 am: Computacenter leads as oil and copper climb
The FTSE 100 hovered around the flatline shortly after Tuesday’s opening bell as gains for Computacenter and commodity-linked stocks offset weakness across banks, retailers and healthcare companies.
London’s blue-chip index stood at 10,821.54, down less than one point or 0.01%. The FTSE 250 slipped 0.15% to 24,469.48.
Computacenter PLC (LSE:CCC) led the blue-chip risers, jumping 4% to 5,825p after reporting record first-half results and raising its full-year profit outlook.
Adjusted profit before tax increased 87% to £152.4 million, while revenue rose 71.6% to £6.85 billion as demand for artificial intelligence and digital infrastructure accelerated, particularly in North America.
The company now expects adjusted profit before tax for 2026 to be at least £380 million, significantly ahead of the current analyst consensus of £340.9 million. Its interim dividend was lifted 14.8% to 27.1p.
Commodity stocks also provided support as oil and copper continued to rise. Brent crude climbed 1.72% to US$98.67 a barrel, while West Texas Intermediate advanced 2.94% to US$94.17.
BP gained 1.46%, while Shell was also higher as escalating supply risks pushed Brent closer to US$100.
US copper contracts rose another 1.25% to US$6.7878 per pound following the metal’s move to record levels. Antofagasta advanced 1.15% and Glencore gained 1.04%.
Auto Trader matched Computacenter with a 4% increase, while London Stock Exchange Group, Halma and RELX were also among the risers.
The gains were countered by weakness elsewhere. Kingfisher fell 1.26%, GSK declined 1.01% and HSBC dropped 0.99%. Standard Life, JD Sports, St James’s Place, Lloyds Banking Group and Next also traded lower.
Sterling remained firm at around US$1.354, presenting another headwind for internationally focused companies by reducing the translated value of overseas earnings.
Gold moved against the broader commodity trend, falling 0.67% to US$4,446.79 an ounce.
The combination of surging energy prices and stronger industrial metals is supporting London’s resource stocks, but concerns that higher commodity costs will prolong inflation are preventing the wider market from making meaningful progress.
7.00 am: Record copper and stronger oil put miners in focus
Record copper prices and Brent crude’s advance towards US$98 a barrel are set to place London’s heavyweight mining and energy sectors firmly in focus on Tuesday.
Benchmark three-month copper reached an all-time high of US$14,533 a tonne before easing slightly to around US$14,510. The metal has been supported by declining mine production, tightening supplies outside the United States and growing demand from power grids, artificial intelligence data centres and electric vehicles.
Expectations that Washington could impose additional tariffs on refined copper have also encouraged traders to move supplies into the US, contributing to shortages elsewhere. The latest advance could support FTSE-listed miners including Glencore, Anglo American, Antofagasta and Rio Tinto.
Brent crude was trading around US$97.80 a barrel, up approximately 0.9%, as disruption risks associated with the conflict involving Iran remained elevated.
The strength in oil could provide further support for BP and Shell, although prices approaching US$100 may renew concerns about inflation, borrowing costs and pressure on consumer spending.
Despite the commodity gains, September FTSE 100 futures indicated a slightly softer start. The contract was eight points lower at 10,825 shortly after 6.15am. London’s blue-chip index finished Monday at 10,822.13, down 0.08%.
Sterling was another important influence, rising approximately 0.1% to around US$1.3534 as the dollar softened and investors responded positively to the UK government’s emphasis on fiscal discipline and economic growth.
Asian markets produced a mixed handover. Australia’s S&P/ASX 200 closed around 1% lower near 8,921, its weakest level in six weeks, as financial, technology and consumer stocks retreated.
Australian consumer sentiment fell 5.2% to 84.4 in September, while NAB’s business-conditions index moved into negative territory for the first time in six years. Westpac now expects the Reserve Bank of Australia to raise interest rates by 25 basis points to 4.6% in November.
Japan’s Nikkei 225 closed 0.6% lower at 66,019.90 as a stronger yen weighed on exporters. South Korea remained higher during late trading, supported by semiconductor stocks, while mainland China was slightly firmer and Hong Kong traded lower.
In the UK, British Retail Consortium figures showed total retail sales growing 0.7% year on year in August, slowing from 1.3% in July. Non-food sales declined 0.8%, although separate Barclays data showed card spending increased 2.1%, its strongest rise in 13 months.
Computacenter’s half-year results and Dunelm’s full-year figures are among the main corporate updates likely to influence early trading.
Spot gold was around US$4,423 an ounce, while Bitcoin traded close to US$78,700.
With Wall Street closed on Monday for the Labor Day holiday, record copper prices, stronger oil and the remaining Asian session are likely to provide the principal direction before the London opening bell.
