London’s leading share index has rebounded a little this morning, with oil stocks buoyed by rising prices and signs of recovery at Shell.
The FTSE 100 gained 14 points, or 0.16 per cent, to 9,493.52.
Shell and Centrica were among the main risers after Shell said it expected higher trading performance in the third quarter. Brent crude was trading up 0.3 per cent at $65.65 per barrel after Open+ increase production by less than expected on Sunday.
Defence stocks were lower, and a dip in the gold price weighed on Fresnillo.
In the more UK-focused FTSE 250, the discount retailer B&M dropped 15 per cent after it warned that profits would be lower than expected.
The pound weakened against the dollar to $1.3436, down 0.35 per cent. Yields on 2-year, 5-year and 10-year UK government bonds fell, but rose for longer dated bond.
Vet group CVS has strong start to year
The Aim-listed veterinary chain has reported a strong start to the current financial year with “positive momentum in like-for-like sales” as it posts full-year results.
The figures are not a big surprise following a comprehensive trading update in July. Pre-tax profit fell 7.4 per cent to £32.6 million, up from an adjusted £35.2 million, in the 12 months to the end of June.
Revenue over the period rose 5.4 per cent to £673.2 million.
The company said it was “pleased with the continued progress of the expansion strategy in Australia”.
UK investors pull record £3.6bn out of stocks
UK investors pulled a record level of cash out of equity funds during the third quarter, shunning stock markets in a flight towards the perceived safety of bonds and cash.
Equity fund net outflows reached £3.6 billion over the three months to the end of September, the worst three-month run since Calastone, the fund industry data provider, began compiling the numbers in 2015.
Investors baulked at “sky-high stock markets”, according to the latest Fund Flow Index from Calastone, after the FTSE 100 and S&P 500 reached fresh record highs despite President Trump’s global tariffs sending equity markets into turmoil.
• Full story: UK investors pull record £3.6bn out of shares
Shell takes $600m Rotterdam hit
Shell has updated its third-quarter 2025 outlook ahead of the publication of results for the quarter later this month.
The FTSE 100 oil company expects higher trading performance in integrated gas, marketing, and chemicals, along with stronger production in its upstream business.
The results will be partially offset by Brazil-related adjustments and $600 million of impairments tied to the cancellation of its plans to build a biofuels plant in Rotterdam.
B and M warns profits will be lower than expected
The discount retailer has warned shareholders that full-year profits will be lower than expected.
Earnings before interest, taxes, depreciation, and amortisation, the company’s preferred profit measure, are now forecast to be in the range of £510 million and £560 million. City analysts had been forecasting £609 million.
Alongside the profit warning, Tjeerd Jegen, the newly appointed chief executive, set out a plan — Back to B&M Basics — to turn around the retailer. Shares in B&M, a former stock market darling, have fallen 38 per cent in the year to date.
House prices fell in September, says Halifax
The average UK house price fell by 0.3 per cent in September following a 0.2 per cent rise in August, according to the mortgage lender Halifax.
Year-on-year, the rate of house price growth also eased to 1.3 per cent, from 2 per cent in August, taking the typical property value to £298,184. It was the weakest annual increase since April 2024.
Economists had forecast prices would rise 0.2 per cent over the month and be 2.2 per cent higher than a year earlier.
Amanda Bryden, head of mortgages at Halifax, said: “This slight monthly dip in house prices reflects a housing market that has remained broadly stable.
“While affordability remains a challenge, a relatively lower mortgage rate environment and steady wage growth have helped support buyer confidence. Although the broader economic outlook remains uncertain, with the affordability picture gradually improving, we continue to expect modest growth through the remainder of the year.”
Ineos blames China dumping for UK job cuts
Billionaire Jim Ratcliffe’s Ineos is to cut 60 jobs in Hull, blaming anti-competitive behaviour from China.
The cuts come months after the petrochemicals company shut down its Grangemouth oil refinery on the Firth of Forth with the loss of hundreds of jobs.
Ineos said anti-competitive trade practices and “dirt-cheap carbon-heavy imports from China flooding the market’ were “crippling” the sector in Britain and Europe.
The company, which also said it was facing high energy prices, threatened further UK job cuts if “the UK government and European Commission do not support tariffs to protect its industry”.
• Read in full: Ineos blames cheap Chinese imports as it cuts 60 jobs in Hull
Bond and currency markets wary
Political upheaval in Japan and France gripped currency and bond markets for a second day.
The yen sank to a two-month low of 150.44 against the dollar, while Japanese government bond prices dipped, pushing yields higher. Although there was appetite for an auction of 536.8 billion yen ($3.57 billion) of 30-year JGBs, allaying fears that investors might steer clear of long-dated debt given the fiscal uncertainty.
While the election of monetary dove Sanae Takaichi as leader of the ruling party in Japan propelled the Nikkei to yet another record high. It was also helped by news of US chip manufacturer AMD’s deal with OpenAI, which pushed the Nasdaq and S&P 500 to record highs.
The shock resignation of Sebastien Lecornu as French prime minister threw the nation deeper into political crisis and unnerved markets. French government bond futures fell slightly after bonds tumbled on Monday, while the euro came under pressure and eased 0.2 per cent against the dollar to $1.1696.
European stock futures pointed to a muted opening, with FTSE 100 futures down 0.07 per cent.
Elon Musk appoints ex-banker as xAI finance chief
Elon Musk has appointed former Morgan Stanley banker Anthony Armstrong as the new chief financial officer of his artificial intelligence group xAI, the Financial Times reports.
Armstrong , who the report says willrun the finance operations for both xAI and social media platform X, replaces Mike Liberatore who left the artificial intelligence startup in July after only a few months in the job. Last month, OpenAI hired Liberatore to be the artificial intelligence startup’s business finance officer, responsible for overseeing its AI infrastructure.