- FTSE 100 flat at 9,654
- Pound falls as UK food inflation eases
- HSBC profits fall less than expected
9.32am: Markets keeping powder dry
The FTSE 100 is little moved after the first hour and a half of Tuesday trading, while the mid-cap FTSE 250 is down 0.3 to 22,445.
Across on the European mainland, Germany’s DAX and France’s CAC are both just below flat.
US futures are flat, with investors keeping their powder dry for a big day tomorrow.
“Softness in commodity prices isn’t helping, and the absence of big tech names means it’s missed out on the tailwinds blowing on the other side of the Atlantic,” says Derren Nathan, head of equity research, Hargreaves Lansdown.
“There are hopes that trade relations between Washington and Beijing can thaw when Presidents Donald Trump and Xi Jinping meet in South Korea later this week.
“Trade deal progress has been difficult but successful discussions could pave the way for lighter export restrictions on advanced technology to China, as well as preventing proposed Chinese tariffs on rare-earth minerals that are essential for semiconductor fabrication.”
He, like many in the market is looking ahead to tomorrow, when the Federal Reserve is expected to cut rates again, while Microsoft, Meta and Alphabet are all set to report after the closing bell.
8.40am: Pound falls on shop price inflation data
The “welcome” easing in food prices has implications for interest rates, says retail sector guru Clive Black at Shore Capital.
Indeed, the pound is down 0.2% against the US dollar and 0.35% versus the euro this morning, as falling inflation “may assist” with an interest rate cut from the Bank of England “sooner rather than later”, Black says.
A fall of 1.0% in October reflected the “ongoing polarity between relatively fulsome food price inflation and flattish non-food pricing”.
With UK wage growth remaining at over 4%, he says, “the real affordability of food remains sound, noting that if the British want better security for their scran, they should expect to pay more.”
8.29am: Takeover action
A long-time resident of AIM looks to be leaving soon.
Idox PLC (AIM:IDOX), which used to be called I-DOCUMENTSYSTEMS when I was a junior reporter back in the early 00s, has agreed to a £339.5 million cash offer from Long Path Partners.
Shareholders are being offered 71.5p per share in cash, representing a 26.8% premium to the closing price on Monday and the highest the shares have been since 2023.
The US investment group has been a longstanding shareholder of the information management firm, with a 12% stake currently, with irrevocable undertakings and non-binding letters of intent that takes support for the bid to over 35% of the shares.
8.15am: FTSE 100 opens higher
The FTSE 100 has come out of the gates with a whisper of a gain, up six points to 9,660.
Top of the early risers is Airtel Africa PLC (LSE:AAF), up 7.1% off the back of its half-year numbers, where the interim dividend was increased 9.2%.
HSBC is up 2.4% after its Q3 profits beat expectations.
Precious metals miners Endeavour and Fresnillo are down 3.7% and 3.6% as gold and silver prices continue to sell off.
8.01am: BT responding to mobile competition
Interesting report from the FT suggests BT Group PLC (LSE:BT.A) is looking to enter the low-cost mobile market to head off competition from a number of fintechs that are adding phone contracts as part of their ‘super apps’.
The UK’s largest broadband provider two main options are to launch a new brand or snap up an existing MVNO (mobile virtual network operator).
Management have been triggered by the potential for new competitors entering the market such as fintechs Monzo and Revolut.
Lendable, another fintech, earlier this month launched a £20-a-month mobile plan, while in August, Monzo revealed it was “in the early stages” of looking to launch its own mobile phone service.
7.55am: Anglo on track
Anglo American PLC (LSE:AAL) says it is still on track to meet its 2025 production targets after a steady third quarter.
In the update, CEO Duncan Wanblad highlights strong performances in copper and iron ore and an upgraded outlook for its Minas-Rio mine in Brazil.
Copper output rose 1% to 184,000 tonnes, driven by higher grades and better plant performance at Quellaveco in Peru and Los Bronces in Chile.
This helped offset lower production at Collahuasi, which is expected to recover by late 2026.
7.44am: HSBC profits fall less than feared
HSBC Holdings PLC (LSE:HSBA) results show that profits fell less than expected for the third quarter.
The fall was related to large legal one-off expenses, particularly the Bernie Madoff litigation provision announced yesterday, partly offset by improved net interest income and a strong performance in its wealth management business.
Europe’s largest bank made a profit before tax of $7.3 billion, down roughly 14% compared to the same period last year but ahead of analyst expectations that averaged just under $6 billion.
Profits were hit by $1.4 billion of legal provisions, including $1.1 billion related to the Madoff fraud.
7.32am: Food prices ease
More on that BRC inflation data.
Food inflation slowed to 3.7% from 4.2% in the previous two months, while non-food prices declined by 0.4%, following falls of 0.1% and 0.8% in the past two updates.
Fresh food inflation ticked up slightly to 4.3% from 4.1%, but ambient food prices fell to 2.9% from 4.2%.
Helen Dickinson, BRC chief executive, said falling prices reflected “fierce competition amongst retailers and widespread discounting” ahead of Black Friday month.
She said food prices were affected by easing global sugar prices, which helped bring down prices of chocolate and confectionery.
NIQ’s Mike Watkins noted subdued consumer sentiment and rising inflation versus a year ago but pointed to “targeted price cuts” by grocers seeking market share.
7.17am: FTSE 100 predicted to extend gains as retail prices fall
The FTSE 100 is set to extend its gains on Tuesday, with good news on inflation from the retail industry as shop prices were said to have decreased in recent weeks.
London’s blue-chip index tiptoed eight points higher to a new record close of 9,653.82 the day before, and today futures are predicting a gain of around 14 points, early doors.
Data from the British Retail Consortium shows shop prices fell 1.0% in October, reversing some of the 1.4% inflation in September.
Last night, Wall Street stocks also finished at record highs, driven by renewed hopes for a US-China trade deal, with the tech-powered Nasdaq adding 1.9% to close at 23,637 points, the S&P 500 1.2% to 6,875 points, and the Dow Jones up 0.7% to 47,544 points.
Asian markets are mostly in the red this morning, with the Nikkei and Hang Seng both down 0.6%.
