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London open: FTSE little changed as BP, Shell gush lower; Budget eyed
London stocks were little changed in early trade on Monday, with energy issues under the cosh, as investors eyed key earnings releases this week and the Autumn Budget.
At 0835 GMT, the FTSE 100 was up just 0.1% at 8,255.82.
Commenting on the Budget due on Wednesday, Richard Hunter, head of markets at Interactive Investor, said: “The overarching mood music of late has been slightly despondent, given the new government’s mixed messages on both austerity and growth.
“This comes despite an underlying improving economy, which has shown some resilience in face of these challenges and, for the more domestically focused FTSE250, an increase in merger and acquisition activity which has pointed towards the value to be found within an index rife with stocks at undemanding historical valuations.
“The pressure on this index has erased some of the gains seen in previous months, although the FTSE 250 remains ahead by 5.8% so far this year.”
In equity markets, BP and Shell gushed lower as oil prices fell after Israel’s retaliatory missile strikes on Iran avoided its oil infrastructure. Brent crude was down more than 4%.
Third-quarter results are due this week from both oil majors.
The drop in oil prices provided a boost to airlines, however, with easyJet, BA parent IAG and Wizz all flying higher.
Lloyds Bank was in the red again, having tumbled on Friday, after saying it was assessing the implications of a Court of Appeal ruling concerning motor commission arrangements. The ruling set a new standard for motor dealers acting as credit brokers, requiring them to disclose commissions paid by lenders more comprehensively to customers.
Trainline surged to the top of the FTSE 250 as it raised its full-year growth guidance after a strong first half.
The company said it expects net ticket sales to increase by 12-14% in the year to 28 February 2025, up from a previous target of 8-12% growth, while revenue growth is tipped to be 11-13%, up from 7-11% previously.
Computacenter ticked up despite downgrading its full-year profit guidance after a softer-than-expected end to the third quarter.
Plus500 nudged lower as the online CFD trading platform said it benefited from continued investments to attract new customers in the third quarter, reporting a double-digit increase in revenue, but with falling margins keeping a lid on profit growth.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Carnival Plc | +2.78% | +40.50 | 1,497.00 |
| 2 |  |
Banco Santander S.a. | +2.26% | +8.50 | 384.00 |
| 3 |  |
International Consolidated Airlines Group S.a. | +1.99% | +4.20 | 215.70 |
| 4 |  |
Investec Plc | +1.95% | +11.50 | 601.00 |
| 5 |  |
Anglo American Plc | +1.64% | +40.00 | 2,474.50 |
| 6 |  |
Intercontinental Hotels Group Plc | +1.50% | +128.00 | 8,634.00 |
| 7 |  |
Halma Plc | +1.42% | +35.00 | 2,504.00 |
| 8 |  |
Informa Plc | +1.37% | +11.20 | 831.20 |
| 9 |  |
Jd Sports Fashion Plc | +1.36% | +1.80 | 133.75 |
| 10 |  |
Rolls-royce Holdings Plc | +1.26% | +7.00 | 563.20 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Woodside Energy Group Ltd | -2.90% | -36.00 | 1,206.00 |
| 2 |  |
Shell Plc | -2.18% | -55.50 | 2,495.00 |
| 3 |  |
Bp Plc | -1.93% | -7.80 | 397.10 |
| 4 |  |
Lloyds Banking Group Plc | -1.56% | -0.90 | 56.76 |
| 5 |  |
Barclays Plc | -1.41% | -3.40 | 238.00 |
| 6 |  |
Centrica Plc | -0.77% | -0.95 | 122.30 |
| 7 |  |
Wise Plc | -0.75% | -5.50 | 729.50 |
| 8 |  |
Smurfit Westrock Plc | -0.65% | -23.00 | 3,522.00 |
| 9 |  |
Gsk Plc | -0.48% | -7.00 | 1,441.50 |
| 10 |  |
Aib Group Plc | -0.37% | -1.50 | 406.00 |
US close: Markets mixed again as uncertainty hits sentiment
US stock markets finished mixed on Friday as investors refrained from taking on too much risk ahead of some crucial market-moving events over the coming weeks, though more gains from Tesla propelled the Nasdaq higher.
The Dow slipped for the fifth straight day with a fall of 0.6%, marking it down 2.5% over the week, while the S&P 500 finished flat. However, the Nasdaq gained 0.6%, edging closer to its record levels reached in mid-July.
Despite the mixed performance across the three main indices, the recent rally this year might not be over just yet, said Trade Nation analyst David Morrison.
“Next week sees five of the ‘Magnificent Seven’ report earnings with Apple, Microsoft, Meta, Apple and Amazon all on tap, rounded off with non-farms at the end of next week. This could prove a big test for the markets while also being a driver of sentiment as we head towards year-end,” Morrison said.
Meanwhile, ongoing uncertainty surrounding the US elections in November is preventing investors from building on positions, though analysts say that markets are starting to price in a Trump victory.
“The USD and US yields have continued to move higher over the past week as market participants price in a higher probability of a Trump win and Red Sweep outcome from the US election,” said MUFG in its weekly round-up on Friday.
On the macro front, durable goods orders decreased by 0.8% to $284.8bn in September, according to the Census Bureau, matching the previous month’s revised drop.
The University of Michigan’s consumer sentiment index was upwardly revised to 70.5 in October from a preliminary reading of 68.9, marking a third straight monthly increase and the highest level seen since April.
Market movers
Tesla continued to rise following a 20% surge the previous day after impressing with its quarterly sales and growth outlook for 2025. Others in the Magnificent Seven, such as Apple, Microsoft and Amazon.com, also finisher higher.
Household goods giant Colgate-Palmolive dropped despite a stronger-than-expected set of second-quarter figures. The company beat forecasts on both the top and bottom line, but analysts linked the negative reaction to a decline in margins.
McDonald’s was a heavy faller again, dropping nearly 3% following reports on Wednesday that its Quarter Pounders were linked to a fatal E.coli outbreak in the US. The fast-food chain, along with others like Burger King, Taco Bell and KFC, on Friday removed fresh onions – thought to be the cause of the outbreak – from their menus.
Shares in Michael Kors owner Capri dropped by 49% after the Federal Trade Commission blocked its proposed acquisition by Coach parent Tapestry.
Monday newspaper round-up: Sellafield, HBOS, retail investors
Rachel Reeves has been urged not to carry out mooted funding cuts for nuclear sites including Sellafield amid safety concerns, as it emerged that the number of incidents where workers narrowly avoided harm had increased at the Cumbrian site. The GMB union has written to Reeves, the chancellor, before Wednesday’s budget to raise safety concerns after rumours emerged that the budget for the taxpayer-owned Nuclear Decommissioning Authority (NDA) could be reduced, which could result in cuts at nuclear sites including Sellafield and Dounreay in Scotland. – Guardian
Pubs and restaurants are warning of closures and a tough Christmas ahead if Rachel Reeves’s budget this week raises taxes and ends a Covid-era relief on business rates. Reeves is expected to reveal a tax-raising budget on Wednesday, to pay for improved public services, with Labour sources indicating the government is intending to raise taxes and cut spending by a combined £40bn. Businesses across the economy are bracing for higher taxes, which could dent consumer spending. – Guardian
Plans to shut down a vital terminal in the North Sea have sparked a bitter legal row over claims it will damage the UK’s oil and gas production. The proposal by French energy giant TotalEnergies to decommission the Gryphon terminal, which serves four offshore oil and gas fields, has triggered a claim from a rival operator. – Telegraph
A long-delayed independent review into whether Lloyds Banking Group covered up a £1 billion scandal may never fully emerge, leading to claims that the lender “cannot face the truth”. MPs on the Treasury committee had expected that the review by Dame Linda Dobbs of the bank’s handling of a fraud at HBOS, the lender rescued by Lloyds in 2009, would be shared with them in full. – The Times
Retail investors are piling into the government bond market amid fears that the Labour government will increase the capital gains tax rate on shares in the budget this week. The investment platform AJ Bell reported a 71 per cent increase in the volume of gilts purchased in September compared with August. This was an increase of 177 per cent on September last year. – The Times
