\u00a0<\/p>\n
\n\tUS\u00a0futures move up
\n\tFTSE 100 gains 18 points
\n\tFTSE 250 up 109\u00a0points
<\/p>\n
9:00 am ET: US futures modest gains<\/p>\n
Equities were under pressure from elevated bond yields as the prolonged Middle East conflict and rising debt issuance by governments and global AI companies added to concerns over borrowing costs.<\/p>\n
September is on track to record one of the heaviest bond selloffs in recent years across heavily indebted European economies and the US.<\/p>\n
US futures are modestly higher across all three major indices, but the gains are small enough to suggest cautious positioning rather than a strong risk-on move.<\/p>\n
Nasdaq-100 futures: +0.27% at 30,649, the strongest of the three, pointing to some recovery in technology stocks after Monday’s sell-off.<\/p>\n
S&P 500 futures: +0.15% at 7,758, indicating a mildly positive signal for the broader market.<\/p>\n
Dow Jones futures: +0.16% at 51,921, broadly in line with the S&P.<\/p>\n
In\u00a0afternoon trade, UK shares were modestly higher, with the FTSE 100 up 18p, or 0.2%, at 10,703, while the FTSE 250 rose 109p, or 0.5%, to 24,445, with mid-cap stocks continuing to outperform.<\/p>\n
Mining\/metals are leading: Weir (+3.6%), Antofagasta (+2.8%), Anglo American (+2.7%) and Metlen (+2.7%) are among the strongest risers.<\/p>\n
This is notable because miners had been under pressure in the previous session as metals prices fell.<\/p>\n
Oil stocks are under pressure: BP (-3.0%), Shell (-1.9%) and Ithaca Energy (-4.6%) are among the biggest fallers. This suggests the market is not simply buying commodities broadly, but is favouring metals while selling energy shares.<\/p>\n
This looks like a sector rotation rather than a broad-based risk-on move, with investors favouring mining and metals stocks while reducing exposure to oil producers.<\/p>\n
Best of the brokers<\/p>\n
UBS: AstraZeneca (AstraZeneca PLC (LSE:AZN, NASDAQ:AZN)<\/a>, AstraZeneca PLC (LSE:AZN, NASDAQ:AZN)<\/a>) praised $2bn Summit Therapeutics investment and cancer drug<\/a> collaboration; exposure to PD\u20111\/VEGF class seen as promising<\/p>\n Jefferies: GSK (GSK PLC (LSE:GSK, NYSE:GSK)<\/a>, GSK PLC (LSE:GSK, NYSE:GSK)<\/a>) \u2018buy\u2019 maintained, 2,500p target; fireside chat reinforced view B7H3<\/a> is underappreciated opportunity<\/p>\n Citi: Legal & General (Legal & General Group PLC (LSE:LGEN)<\/a>) \u2018sell\u2019 maintained, target<\/a> slightly adjusted to \u00a32.48; weaker earnings quality and tougher competition weigh on outlook<\/p>\n Peel Hunt: S&U (S&U PLC (LSE:SUS)<\/a>) \u2018buy\u2019 maintained, 2,460p target; lending book <\/a>grew 27% to \u00a3541m in H1<\/p>\n Cavendish: Poolbeg Pharma (Poolbeg Pharma PLC (AIM:POLB)<\/a>) \u2018buy\u2019 maintained after positive safety review of POLB 001<\/a> study<\/p>\n Cavendish: Jersey Oil & Gas (Jersey Oil and Gas PLC (AIM:JOG, OTC:JYOGF)<\/a>, Jersey Oil and Gas PLC (AIM:JOG, OTC:JYOGF)<\/a>) \u2018buy\u2019 maintained, 537p target; offers significant exposure to UK North Sea<\/a> recovery despite Buchan delays<\/p>\n 8:00 am ET: US futures recover<\/p>\n US stock futures were slightly higher, with Nasdaq-100 futures up 0.3% at 30,664, S&P 500 futures up 0.2% at 7,758 and Dow Jones futures 76p\u00a0higher at 51,913, as investors weighed renewed AI safety concerns and elevated oil and bond prices.<\/p>\n The moves came after a leaked Anthropic<\/a> IPO prospectus and OpenAI<\/a>‘s decision to scrap a next-generation model raised fresh questions about the risks surrounding artificial intelligence.<\/p>\n AMD shares were little changed after the Lisa Su-led chipmaker acquired AI startup World Labs, founded by AI researcher Fei-Fei Li, for $8.2 billion in a deal focused on talent and AI expertise.<\/p>\n The acquisition was soon overshadowed by a Reuters report on the leaked Anthropic<\/a> prospectus, which showed the AI company targeting a $2 trillion valuation, more than double its estimated $965 billion valuation.<\/p>\n Investors are also focused on a busy US economic calendar, with the Job Openings and Labor Turnover Survey and the Conference Board’s consumer confidence index due on Tuesday, followed by PCE inflation, GDP, manufacturing data and Friday’s jobs report.<\/p>\n The data could influence expectations for Federal Reserve interest rates and add to volatility across risk assets, including cryptocurrencies.<\/p>\n Bitcoin was up 1.4% at US$84,173, recovering after retreating roughly 4% from a more than seven-month high earlier this month.<\/p>\n Brent crude futures for December delivery fell 1.1% to US$96.79 a barrel, down from a previous close of US$97.83, after opening at US$98.55.<\/p>\n The December contract traded between US$96.64 and US$100.28, while remaining 42% higher than a year ago and well below its 52-week high of US$126.41.<\/p>\n November Brent futures were at US$104.04 a barrel, down 0.88%, while Brent crude spot prices rose 0.6% to US$99.06 a barrel.<\/p>\n Gold prices struggled to recover from a more than seven-week low as higher yields capped gains in the non-yielding asset.<\/p>\n UK shares held on to earlier gains, with the FTSE 100 up 38 points, or 0.4%, at 10,722, while the FTSE 250 rose 123 points, or 0.5%, to 24,459, although the advance had lost momentum.<\/p>\n 12 noon BST: FTSE 100 and FTSE 250 not giving up early gains<\/p>\n The FTSE 100 extended its gains to 10,723, up by over 9p or 0.4%, while the FTSE 250 climbed by 33p or 0.4% to 24,441, with mid-cap shares continuing to outperform.<\/p>\n Oil prices and elevated bond yields set a cautious tone for global markets on Tuesday, as investors weighed the prospect of borrowing costs remaining high while continuing to monitor disruptions to energy supplies from the Middle East.<\/p>\n Brent November futures rose about 1.5% to US$106.90 a barrel, while the December contract traded around US$98, with concerns over Middle East supply disruptions supporting prices despite signs that Gulf crude exports are recovering.<\/p>\n The rise in oil prices has added to inflation concerns and helped keep government bond yields near multi-year highs, putting pressure on equities by raising the prospect that interest rates will remain elevated for longer.<\/p>\n European shares nevertheless moved higher, with the FTSE 100 up, the DAX gaining 0.18% to 8,093.11 and the CAC 40 rising 0.55% to 642.22, helped by strength in technology stocks.<\/p>\n AI remained a key theme after Reuters reported that Anthropic<\/a>‘s planned public debut could value the company at more than US$2 trillion, while the company plans to spend US$518 billion on cloud computing and infrastructure.<\/p>\n The AI focus also helped support US technology futures, with Nasdaq 100 futures up 32 points, or 0.1%, while S&P 500 futures were broadly unchanged and Dow futures fell 40 points, or 0.1%, after higher Treasury yields weighed on Wall Street in the previous session.<\/p>\n The dollar remained firm as elevated US Treasury yields and uncertainty over the duration of the Middle East conflict supported demand for the US currency, with the euro down 0.29% at US$1.1338 and sterling down 0.24% at US$1.3223.<\/p>\n The yen fell 0.11% to US$0.0063, while the yuan gained 0.08% to US$0.1491, and the dollar index was on course for its first monthly rise since June.<\/p>\n Gold also advanced, rising US$14.14, or 0.34%, to US$4,149.90 an ounce as investors continued to seek a hedge against geopolitical and inflation risks.<\/p>\n In the UK, economic data presented a mixed picture, with consumer borrowing rising at its fastest annual pace since records began in 1993 while mortgage approvals fell to 54,918 in August, their lowest level since December 2023.\u00a0<\/p>\n The weakness in mortgage approvals, which fell from a revised 55,928 in July, suggests higher borrowing costs are weighing on housing demand, while shop price inflation eased to 1.4% from 1.5% as retailers increased promotions to limit the impact of higher costs.<\/p>\n Markets are also watching the UK government’s tax plans ahead of the Budget, after Chancellor John Healey highlighted the country’s comparatively low capital gains tax rates, fuelling speculation over a possible increase, while the existing main rates remain 18% and 24%.\u00a0<\/p>\n At the corporate level, Vesuvius shares rose 27% to 477p on Tuesday, after the British engineering group said it was assessing a \u00a31.37 billion cash-and-stock offer from\u00a0RHI Magnesita. The shares had opened at 369p and reached an intraday high of 494p, compared with Monday’s close of 374.4p.<\/p>\n 11:00 am BST: London indices holding on\u00a0<\/p>\n The FTSE 100 is up over 28p, or 0.27%, to 10,713.28, led by gains in healthcare, industrial and consumer-facing stocks, with ConvaTec, Halma and InterContinental Hotels Group among the biggest risers.<\/p>\n The FTSE 250 has gained 72p, or 0.30%, to 24,407.45.<\/p>\n Small caps roundup<\/p>\n Incanthera PLC (AQSE:INC)<\/a> used its preliminary results to outline its transition towards a skincare technology supplier, working through partners rather than selling directly to consumers.<\/p>\n New chief executive Stuart Robertson, who joined in June, said the strategy<\/a> is to expand through partners that offer scale, established routes to market and access to new customers.<\/p>\n Zanaga Iron Ore Co Ltd (AIM:ZIOC, FRA:6ZA)<\/a> highlighted in its interim results that work to improve the economics of its Republic of Congo iron ore project has identified around $2.2 billion of potential cash-cost savings.<\/p>\n The update comes as talks continue over a proposed strategic investment<\/a> and up to $500 million of potential project financing.<\/p>\n Tribal Group PLC (AIM:TRB)<\/a>, the education software company, faces a possible 111p-a-share cash offer from its largest shareholder, Jenzabar, setting up a rival proposal to the \u00a3231.2 million sale agreed with Main Capital Partners.<\/p>\n The approach follows Tribal’s agreement <\/a>to improved terms with Main Capital, which is acquiring the company through Thames Bidco for about 105p a share.<\/p>\n \u00a0Shares in Smiths News PLC (LSE:SNWS)<\/a> (Smiths News PLC (LSE:SNWS)<\/a>),\u00a0the newspaper and magazine wholesaler<\/a>, climbed nearly 8% to an intraday high of 72.8p on Tuesday after the company said full-year results would beat market expectations.<\/p>\n Trading in the year ended 29 August was stronger than expected.<\/p>\n Ariana Resources PLC (AIM:AAU, ASX:AA2, FRA:4A6)<\/a> reported a sharp increase in first-half profit and ended June with \u00a317.3 million in cash after monetising part of its Turkish mining interests to fund development of its flagship Dokwe gold project <\/a>in Zimbabwe.<\/p>\n Rockfire Resources PLC (LSE:ROCK)<\/a> has started work on a maiden JORC Inferred germanium resource estimate for its Molaoi deposit <\/a>in Greece, with results expected within four weeks alongside an updated zinc resource.<\/p>\n