- FTSE 100 adds 8 points at 9,653
- London index hits new intraday high of 9,672.7
- Markets boosted by US-China trade deal framework
- HSBC down after warning of $1.1bn Madoff lawsuit provision
4.43pm: FTSE 100 drifts
The FTSE 100 finished the day modestly higher, adding 8 points at 9,653.
“It’s been a more subdued day in London, with the FTSE 100 failing to march to a fresh record high, but with gold under such heavy pressure and little news on the company front, the index seems likely to consolidate its recent gains rather than continue its strong run,” IG chief market analyst Chris Beauchamp said.
Gold, meanwhile, fell about 3% to about $4,000 per ounce.
“The selling continues to snowball in gold and silver, barely two weeks after the price reached a record high. The momentum trade in precious metals had delivered the goods in recent weeks, but such rallies often reverse dramatically,” Beauchamp said.
“The drop should be welcomed by most investors, both for offering the chance to buy at lower prices and for taking some of the undoubted speculative froth out of the situation.”
4.02pm: FTSE retreating from record high
After hitting a new intraday record of almost 9,673 earlier, the FTSE 100 is now heading for a small fall, it looks like.
Precious metals miners Fresnillo and Endeavour Mining are leading a decline, with other defensives such as Diageo, SE, Metlen and Centria among the fallers.
Gold and silver prices are down 3% and 4.3% respectively, as investors show a preference for riskier assets at the start of the week.
At the other end, Standard Chartered is top of the leaderboard, up 3.2%, ahead of its Q3 results later in the week.
Polar Capital Tech Trust and Scottish Mortgage are both in the chasing pack, as across the pond the tech-led Nasdaq rises another 1.6%, adding to its 2.9% gain last week.
Wealth manager St James’s Place, lenders Lloyds Banking and NatWest, fashion house Burberry and life insurer L&G are also in the mix.
3.20pm: ABF opens first franchise store, in Kuwait
Shares in Primark owner Associated British Foods PLC (LSE:ABF) have battled out of the red this afternoon, having sunk this morning.
Primark opened its first store in the Middle East at the weekend, at The Avenues shopping mall in Kuwait and said it plans to open a further three stores in Dubai next year as well as a store in New York.
Citi analysts noted that this was Primark’s first store opening via a franchise agreement, in partnership with the Alshaya Group, which also partners with H&M and Next in the region.
Kuwait is Primarks’ 18th international market entry and the first one outside of Europe or the US.
“Whilst this is a significant market entry, we believe the Gulf expansion is still in the early stages and do not foresee any changes to the near term company guidance”, said Citi analysts, with the company’s outlook currently for roughly 4-5% sales growth.
2.38pm: Rental market spotlight
UK private rents have climbed to record highs, with the amount tenants are being asked to pay in some hotspots rising more than 25% in a year, according to fresh data from Rightmove today.
Over the past three months, the average advertised private rent rates outside London rose to a new high of £1,385 per calendar month, while in London the average monthly rent rose to a record £2,736.
New record highs had been seen in the previous two quarters too, Rightmove says.
Affordability for renters is “very stretched”, it added, as although average earnings are up 5% compared with a year ago, the cost of paying rent now takes up 44% of the average month’s pay, compared to 40% in 2020.
For landlords, the rise in stamp duty announced in the last Budget is expected to be followed by more tax changes from Rachel Reeves next month.
Rightmove said the government’s Renters’ Rights Bill, which is awaiting royal assent, may put off some buy-to-let landlords, though earlier Grainger PLC said it supported the incoming legislation.
2.04pm: Drinks going down well
One of the first US earnings releases of the week is Keurig Dr Pepper Inc (NASDAQ:KDP), where the Dr Pepper, 7 Up, Sunkist, Schweppes and Canada Dry drinks maker reported better than expected revenue and raised its full-year outlook.
KKR, Apollo Capital and Goldman Sachs have also agreed to $7 billion strategic investment in the drinks maker.
Net sales at its US refreshment beverages segment increased 14.4%, while its US coffee division sales improved 1.5%.
The company also said it now expects 2025 full-year net sales to grow at a high-single-digit pace, up from the mid-single-digit range previously.
In August, the company said it would acquire Douwe Egberts and Kenco owner JDE Peet’s in an all-cash deal valued at about $18 billion.
1.50pm: More record highs in New York
US stocks moved firmly higher in early trading on Monday, with major indices buoyed by demand for technology sector names.
The Nasdaq led the way, rising 1.5% to new record highs around 23,556, as Nvidia, Alphabet, Meta, Tesla and Palantir all gained over 2%.
The S&P 500 rose 0.9% to its own record highs above 6,856, while the Dow Jones notched its own new records as it climbed 0.5% to 47,532 in initial trades.
12.49pm: L&G agrees annuity transfer whopper
Legal & General Group PLC (LSE:LGEN) shares are up 1.6% after it completed a £4.6 billion buy-in with the trustees of Ford’s pension schemes, which it said was its second-largest ever by premium size and the largest in the UK this year.
It brings L&G’s global pension risk transfer volumes this year to £11 billion.
L&G chief executive António Simões said the transaction “puts us firmly on track” to achieve pension risk transfer growth targets.
12.17pm: Avacta’s dual cancer ‘warhead’ platform impresses
Avacta Group PLC (AIM:AVCT) shares are getting some attention today, up 8% after the biotech group unveiled pre-clinical data that could mark a step forward for its tumour-targeting technology.
Analyst Julie Simmonds at Panmure Liberum kept her positive stance on the stock, citing the results as validation of Avacta’s platform and its potential to attract new partners.
The company’s data demonstrated the use of its pre|CISION “warhead delivery system”, which Simmonds says “illustrates that a novel dual payload peptide drug conjugate can be created which delivers two complimentary therapies from a single molecule simultaneously into the tumour microenvironment”.
She says this “highly novel approach will generate further interest” from potential partners.
11.43am: European companies lagging US in this earnings season
For the European third-quarter reporting season, only around 40% of companies by market cap have reported so far, according to Morgan Stanley, with a 22% net skew to earnings beats versus the consensus forecast.
This has been led by the luxury sector, banks, financials and utilities.
Guidance has been “closer to neutral” at around a +4% net skew, according to analysts’ takes, flat from a week ago and marginally ahead of Q2.
“European earnings revisions breadth has recently shown a slight uptick in the four-week trend, but remains at negative levels and the weakest among global regions,” the bank says.
Despite European equities seemingly showing a net positive results skew in most quarters, “this typically follows a flurry of consensus downgrades on expectation management into the quarter and hence does not point to a structural shift in the earnings trend”.
US earnings revisions breadth has inflected more positively, with US analyst review data showing a +59% skew to beats and +22% to 12-month consensus EPS upgrades.
Companies that have most impressed include Whitbread, NatWest and Tesco.
11.14am: Spain and crypto provide more action
It’s not only the Footsie that is flat in European trading, as it is joined by the German DAX and French CAC, both up by less than 10 points.
More notable is Spain’s IBEX, up 0.6% to a new all-time high, led by the financial sector this morning. The Madrid index has clambered above its closing high from 2007.
Italy’s FTSE MIB is also up 0.8% this morning.
Crypto markets are showing more action too. Bitcoin is up 2.6% over the past 24 hours to $115.45K, with ethereum up 4.9% and solana rising 3%.
Market analyst Chris Beauchamp at IG says “there’s still plenty of optimism in crypto prices and risk assets more broadly”.
He says bitcoin’s record highs are “still some way off but the macro backdrop continues to argue for more gains in stocks and crypto prices. I
“It has been a tough period of consolidation for the sector overall but such ‘digestion’ of gains is healthy in the longer-term.”
In other developments, he notes the launch of a stablecoin pegged to the Japanese yen as a milestone that “will help to indicate how much demand is out there for a digital proxy for the yen, while also broadening out the world of stablecoins linked to a currency, as others attempt to follow the lead of the US”.
While this is an action-packed week for markets, thanks to a Fed meeting and earnings for four tech giants, Beauchamp says the dip-buying in crypto assets in the past week “continues to provide a floor for a more sustained bounce”.
10.17am: More positive backdrop on trade
UBS strategists agree there are “more reasons to stay positive” this morning, after weekend US-China trade talks in Malaysia “set the stage for a potential breakthrough” at this week’s anticipated Trump-Xi summit.
US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng reached a “preliminary consensus” on key issues, including tariffs, rare earth export controls, fentanyl, and agricultural trade, according to official statements and media reports.
Both sides agreed to extend the current tariff truce beyond its 10 November expiry, with China said to agree to resume US soybean purchases.
Trump called the framework “very positive”, with further details expected to be finalised on the sidelines of Thursday’s APEC summit in South Korea.
“This latest run of positive news adds to a period of sharp two-way swings in investors sentiment around China. While a number of risks remain unresolved and several market catalysts are looming, we see compelling reasons to engage with China equities, and especially in the tech sector,” says UBS.
9.22am: Goodwin announces special divi, Anemoi a RTO
Some big movers among the small caps this morning.
Engineer Goodwin PLC (LSE:GDWN) rocketed over 35% to a new all-time high after it declared a special dividend and said trading profits should more than double in the current year to next April.
The Stoke-on-Trent company, which makes products for defence, aerospace, energy, automotive and industrial markets, said it expects trading profit before tax to be in excess of £71 million, compared to £35.5 million in the prior year.
A special interim dividend of 532p per share has been declared, which is on top of a 140p dividend already paid this month and a further 140p declared for payment in April 2026. The shares are up over 220% over the past year.
Down on AIM, shell Anemoi International Ltd (LSE:AMOI) shares surged 80% after it announced a reverse takeover of Trasna Solutions Technologies, an Ireland-based specialist in Internet of Things applications and e-SIMs.
The deal is for total consideration of up to £150 million, to be paid for with an equity fundraising, and subject to due diligence.
Once the deal is complete, the plan is to move the enlarged group from AIM to the London main market and rebrand as Trasna Technologies Ltd.
9.04am: FTSE flatlining after hitting new record
While the FTSE 100 is not racing away this morning, it still added to its record highs earlier with a new intraday record just above 9,660, with other international markets like Japan also notching new peaks.
The “increasingly conciliatory noises coming from Washington and Beijing” are leading to hopes for a tariff truce extension at the very least, says market analyst Richard Hunter at Interactive Investor, ahead of the world’s two largest economic powers meeting in South Korea later in the week.
He says the US inflation report on Friday was taken as “cementing a rate cut” from the Federal Reserve at this week’s meeting, but also for a further reduction in December, leading to an “investing frenzy” as the prospect of lower interest rates stimulating economic activity.
The Footsie has “missed the party somewhat”, says Hunter, flatlining after closing at its own record closing high at the end of last week.
Gains have been tempered by HSBC, the index’s second-largest company, booking a provision of $1.1 billion relating to the Madoff fraud, as well as some weakness in gold-related stocks that reflects the ‘risk on’ mood.
8.31am: Petrofac restructuring
Petrofac Limited (LSE:PFC) has applied to the High Court to appoint administrators to its ultimate holding company, Petrofac Ltd.
It said this was “a targeted administration” of the holding company only, with the group’s operations continuing to trade, and options for alternative restructuring and M&A solutions are being “actively explored” with key creditors, including the ad hoc group of noteholders, who are supporting the group through continuing forbearance agreements.
Maturities for bank lending and term loans continue to be extended on a rolling basis.
The shares have been suspended since the start of May.
8.16am: FTSE opens tentatively
The FTSE 100 has opened uncertainly, adding four points to its record high after flirting in the red in early trades.
Miners Glencore, Antofagasta and Anglo American, along with tech investment trusts, are among the initial risers – both likely to be buoyed by the latest upswing spirits over US-China trade talks.
Centrica, Endeavour Mining and Fresnillo are leading the fallers as gold and silver prices both drop over 1%.
HSBC is down 1% after news of its Madoff-linked provision earlier.
7.50am: Takeover updates
Some updates on agreed takeovers.
The UK Competition and Markets Authority has announced that its Phase 1 decision on the merger of Greencore Group PLC (LSE:GNC) and Bakkavor Group PLC (LSE:BAKK) mostly does not give rise to competition concerns in the vast majority of areas reviewed, with only the supply of own-label chilled sauces seen as a possible snag.
Greencore now has the opportunity to put forward remedies to address this concern to avoid an in-depth Phase 2 investigation, with the deal still expected to be completed in early 2026.
Elsewhere, the purchase of Dowlais Group PLC (LSE:DWL) by American Axle & Manufacturing is expected to close in the first quarter of 2026.
After the combination was unconditionally cleared by the European Commission, the companies flagged that this is now the case under antitrust laws in seven of the ten required jurisdictions where filings were made, including the USA, India and the UK.
The clearances that remain outstanding under antitrust laws are Brazil, Mexico and China, respectively expected in early November, the fourth quarter and in late 2025 or early 2026.
7.29am: HSBC makes provision related to Ponzi scheme lawsuit
HSBC Holdings PLC (LSE:HSBA) says it will make a $1.1 billion provision in its third quarter 2025 results, which are due tomorrow, in connection with litigation relating to Ponzi scheme fraudster Bernie Madoff.
The case, filed in 2009 in Luxembourg by Herald Fund SPC, involves claims against fund administrator HSBC Securities Services Luxembourg (HSSL) for restitution of securities and cash.
It will not affect the group’s full-year 2025 return on tangible equity excluding notable items or any dividend payments, the bank says.
As a reminder, Madoff was the financier behind one of the biggest scams in global history, swindling clients out of an estimated $17.5 billion over several decades.
Celebrities were among those caught by the scam, with actor Kevin Bacon and director Stephen Spielberg said to have lost substantial sums.
7.16am: FTSE 100 poised for firm start on US-China trade optimism
The FTSE 100 is poised for a firmer open as we begin the last week of October, helped by renewed optimism about US-China trade relations.
Futures point to a 15-point increase in initial trades, after the London index finished last week with two record closing highs in a row, ending at 9,645.62, up 291 points over the week.
Asian markets are buoyant this morning, with Japan’s Nikkei up 2.5% and Hong Kong’s Hang Seng and the Shanghai benchmark both up over 1%.
Wall Street closed higher on Friday after inflation data was seen as not closing the door on another Federal Reserve interest rate cut this week.
The US dollar and 2-year Treasury yield are both firmer this morning amid “renewed risk appetite and optimism that the US and China are inching closer to a trade deal”, says market analyst Ipek Ozkardeskaya at Swissquote Bank.
“Early reports suggest the two sides have reached an initial agreement on major issues, including export controls, shipment levies and fentanyl, raising hopes that Thursday’s meeting between Trump and Xi could yield tangible progress.”
As well as the Fed meeting, US earnings will be in the spotlight this week, with the tech heavyweights Microsoft, Alphabet, Meta, Apple and Amazon all set to report third-quarter results.
“Because they account for roughly a quarter of the S&P 500’s total market capitalisation, invest heavily in AI and have shouldered the market rally since early 2023 despite wars, rate hikes and global economic headwinds, their results will be crucial in determining whether the tech-led rally can extend further,” says Ozkardeskaya.
