\n\tFTSE 100 falls 29\u00a0points to 10,868
\n\tSouth Korea leads Asian market\u00a0rally
\n\tSainsbury jumps on Argos disposal\u00a0
\n\tMelrose declines on Garden Grove hit
<\/p>\n
5.02pm: Stocks slump<\/p>\n
The FTSE 100 finished the day down 29 points at 10,868, down from record highs as oil prices rose. Across the Atlantic, the Dow Jones was up 0.4%, while the S&P 500 and the Nasdaq added 0.3%.\u00a0<\/p>\n
\t\t\t\t\t4.11pm: A little profit-taking something for the weekend\u00a0<\/p>\n
After hitting a record high earlier, London’s blue-chip index looks to have been hit by a bit of profit taking.<\/p>\n
So reckons Chris Beauchamp at IG: “End of month profit taking might be a bit of a clich\u00e9, but with a weekend of potential strikes on Iran and the last day of July trading upon us investors have looked to book in some gains.”<\/p>\n
The FTSE 100 has been the flavour of the fortnight\u00a0as AI as chip stocks have suffered.<\/p>\n
“While a close above 11,000 eludes the index at present, it still seems a matter of when, not if,” Beauchamp says.\u00a0<\/p>\n
He portrays pre-weekend caution for the soft start in New York, but says dip buyers may be “looking to hold the line for today and then resume the buying on Monday”.<\/p>\n
“Assuming, that is, that the US doesn\u2019t go in heavy on Iran in a fresh bid to secure negotiations.<\/p>\n
“Reports point towards growing exasperation in the White House over the lack of progress towards a deal, which raises the likelihood of a significant strike in order to secure concessions.”<\/p>\n
The rise in oil prices today “suggests there has been some opportunistic buying in case action does take place”.<\/p>\n
3.52pm: FTSE’s mini drama<\/p>\n
The FTSE was humming along fairly blithely, up around 50 points, until US markets opened and sent it into the red.\u00a0<\/p>\n
After dropping 63 or so points south, it has started to move up again, cutting the loss below 20 points.\u00a0<\/p>\n
Heavyweights such as Unilever, RELX, Compass, HSBC and AstraZeneca fell, outweighing gains for oil and mining stocks.<\/p>\n
IG Group is still the biggest faller, plunging 13.1% after last night’s Underdog deal<\/a>, while Melrose is next after its update earlier<\/a>; JD Sports and Experian are also among the sharpest fallers.<\/p>\n NatWest’s 3.7% results-led gain and rises for Shell, BP, BAE Systems and Glencore are limiting the decline.<\/p>\n 3.15pm: UK Budget date confirmed<\/p>\n The government has announced that the first Budget under new PM Andy Burnham and Chancellor John Healey will be on 28 October.\u00a0<\/p>\n HM Treasury said: “The government has said it will stick to its fiscal rules to support economic stability and provide certainty, while using the Budget to drive growth in every postcode and ease cost-of-living pressures.”<\/p>\n Healey has commissioned the OBR\u00a0to prepare an economic and fiscal forecast to be presented alongside the Budget.\u00a0<\/p>\n 3.09pm: Apple hit<\/p>\n Wall Street opened higher, but has slipped into the red, with the Dow Jones and\u00a0S&P 500 falling almost 0.4% now, and the Nasdaq shedding 0.3%.<\/p>\n Apple is providing the biggest drag, tumbling 8.6%, while Coinbase has slumped 12.1% and GoDaddy is down 23.8%.<\/p>\n Strategy, Linde, AppLovin and SanDisk are also among other fallers.<\/p>\n Bonds are putting pressure on the market, with\u00a0the yield on the US 10-year\u00a0note surging to its highest level since the start of last year, at 4.73%.<\/p>\n UK gilts are also climbing, with the 10yr moving above\u00a05.05%.\u00a0<\/p>\n 2.05pm: Morrisons losses grow<\/p>\n Morrisons said it demonstrated “resilience” in the past year, though annual pre-tax losses widened to \u00a3926 million from \u00a3612 million and almost 5,000 jobs were axed.<\/p>\n Doesn’t sound very resilient for the business\u00a0owned by US private equity firm Clayton, Dubilier & Rice, which took the supermarket private following its \u00a37 billion takeover in 2021<\/p>\n Sales rose 3.2% to \u00a315.8 billion in the year to October 2025, though grocery inflation did some of the lifting.<\/p>\n The supermarket blamed a cyberattack on an IT supplier, rising costs and a writedown on the value of its McColl’s convenience stores.<\/p>\n Look beneath the\u00a0loss, however, and Morrisons assures us that “the underlying performance of the business was robust”.<\/p>\n There is at least some evidence for the defence. Net debt has fallen 46% to \u00a33.2 billion since CD&R bought the grocer, helping annual interest costs drop 29% to a still fairly chunky \u00a3281 million.<\/p>\n The human cost of that deleveraging included 4,912 jobs, with cuts following the closure of its newspaper delivery service and reductions at head office and the Rathbones bakery business.<\/p>\n 1.32pm: The big stories for US markets<\/p>\n “What a difference a day makes,” croons market analyst Kenny Polcari at Slatestone, “24 little hours\u2026. Stocks exploded higher yesterday\u2014and if you listened to the media, you\u2019d think investors suddenly decided AI was alive again.<\/p>\n “That\u2019s not what happened.”<\/p>\n He points out that semiconductor stocks, which had been crushed nearly 30% from their highs, “simply became too cheap to ignore and buyers stepped in and took that sector up 8.5%.”<\/p>\n And Microsoft, which had been “tossed out the window”, by the end of the day had surged by 15.5%, adding $450 billion in market value in one day<\/a>, the largest one-day surge in any stock capitalisation in history.<\/p>\n This helped the Mag 7 to 2%, while the Dow Transports and the Equal Weight S&P lost ground. Other\u00a0sectors that fell included utilities, consumer staples, communications, healthcare, basic materials and real estate.<\/p>\n “Let\u2019s be clear about what happened \u2013 no matter how the media framed it. Demand for AI didn\u2019t disappear. The AI story hasn\u2019t\u2019 been falling apart…\u00a0Expectations got way ahead of reality, valuations became stretched, and investors demanded a reset. In the end – it was a recognition that the selling had simply gone too far \u2013 creating opportunities everywhere you looked.”<\/p>\n Polcari says the 30% correction in a sector that was up nearly 100% in the year “is not the end of the story”, but “the price of admission for the next leg higher”.<\/p>\n Then after the bell Apple and Amazon reported and sent “two very different messages”, he says,\u00a0<\/p>\n Apple’s quarter was “fine” on the surface, but Tim Cook’s\u00a0warning that supply constraints, particularly advanced chips and memory needed for AI-enabled devices, could limit growth in the coming quarter.\u00a0<\/p>\n “That\u2019s not a demand problem. That\u2019s a supply problem. But Wall Street doesn\u2019t like uncertainty,” says Polcari, so the shares are down 7.8% in premarket trading.<\/p>\n Amazon, up 12%, was a completely different story, with AWS revenue surging 37% and management raised capital spending plans, “perhaps most importantly”, says Polcari.<\/p>\n “If this had happened six months ago, investors might have panicked over another massive increase in spending. Not anymore. Why? Because just like MSFT – AMZN showed the money is already generating results. AWS is accelerating, not slowing. Demand for AI infrastructure continues to exceed available capacity. Businesses aren\u2019t pulling back\u2014they\u2019re asking for more.”<\/p>\n 12.26pm: Crude up, petrol prices at highest this year<\/p>\n Crude oil prices have spiked again, probably reflecting more fighting in the Gulf.\u00a0\u00a0<\/p>\n In the past hour, the Kuwaiti army said Iranian drones penetrated the country’s airspace since early morning and were intercepted and destroyed.<\/p>\n Brent crude has climbed back above $90 a barrel, having dropped to below $87 earlier.\u00a0 \u00a0<\/p>\n Meanwhile,\u00a0the\u00a0RAC has flagged that UK petrol prices\u00a0have risen to their highest level so far this year to an average of 160p a litre at the pump.<\/p>\n This is “very unwelcome news for drivers”, says\u00a0RAC\u00a0head of policy\u00a0Simon Williams,\u00a0with the average price of petrol up 9.38p\u00a0from the levels in early July.<\/p>\n “Diesel has now shot up 14.5p since its low point on 9 July to 179p, but fortunately is still 12.5p below its conflict high of 191.54p on 15 April.”<\/p>\n To fill a family-size car with unleaded petrol now costs \u00a388.<\/p>\n “The wholesale price of petrol eased very slightly this week but it is not enough to make a difference at the pumps,” Williams said.<\/p>\n “Diesel looks set to keep on rising and is likely to reach 185p a litre in the next few weeks, barring any major oil price reduction.”<\/p>\n 11.56am: IG deal analysed<\/p>\n IG Group shares tumbled almost 11% now<\/a> as investors reacted to the proposed acquisition of US sports-betting business Underdog for up to $1.3 billion, which will require a share issue and the pausing of its share buyback.<\/p>\n The deal was announced yesterday evening, just after markets closed.\u00a0<\/p>\n Analyst David McCann at Deutsche Bank says Underdog is “increasingly” a prediction-markets business that remains firmly focused on sports.<\/p>\n He\u00a0notes that\u00a0Underdog generated annualized revenue of $0.5 billion and EBITDA of $0.12 billion in the first half of 2026, implying multiples of up to 2.6x revenue \/ 10.8x EBITDA based on the up front plus maximum earn out ($1.3 billion).<\/p>\n Julian\u00a0Roberts at Jefferies says: “The results are in line and probably will not provoke much excitement, but the acquisition is interesting, and we suspect it will play well with investors.”<\/p>\n 11.33am: FCA targets ‘consolidated tape’ within 18 months<\/p>\n The Financial Conduct Authority has set out plans to launch a consolidated record of trading across UK equity markets within 18 months, as the City watchdog seeks to make share-market activity easier and cheaper to track.<\/p>\n Data from before and after trades take place will be provided, giving investors a broader view of prices, liquidity and market activity.<\/p>\n UK investors currently have access to a wide range of trading venues, which the FCA said had encouraged competition and innovation.<\/p>\n “However, greater choice has also increased fragmentation,” it added. “Obtaining a complete picture of trading activity can be complicated and expensive, meaning market-wide data is often under-used. It also means the depth and liquidity of UK equity markets is often under-appreciated.”\u00a0<\/p>\n A proposed “consolidated tape” will combine trading information from different exchanges and venues into a single source.\u00a0<\/p>\n 10.45am: Microsoft works its magic<\/p>\n Mid-morning, the FTSE 100 is off its highs but still looks set to end the week on the front foot, with US markets also poised to end on a high.<\/p>\n London’s blue-chip index is currently up 55 points at\u00a010,952.25, a gain of 0.5%.<\/p>\n US futures are pointing to a positive open, with the Nasdaq expected to open 1.2% higher, while Dow Jones futures are up 0.6% and those for the S&P 500 are 0.5% firmer.\u00a0\u00a0<\/p>\n \u201cThe FTSE 100 tested new record highs on Friday morning as investors continue to climb the wall of worry and sentiment improves,\u201d commented\u00a0AJ Bell investment director Russ Mould.<\/p>\n \u201cThe rebound in tech powered by Microsoft\u2019s extremely well-received numbers has helped lift the broader market mood, helping investors to put concerns about the Iran conflict and its continuing impact on ice for now.”<\/p>\n Mould noted that miners are helping to support the London market, along with some positive corporate updates.<\/p>\n \u201cHousebuilder Taylor Wimpey slumped as the company downgraded construction guidance, reported a hit to margins and slashed capital returns to shareholders, offering the latest reminder that this sector is on shaky foundations,\u201d he added.<\/p>\n 10.30am: Small caps in the news<\/p>\n Ariana Resources PLC (AIM:AAU, ASX:AA2, FRA:4A6)<\/a> has raised US$3.7 million from selling its remaining Kiziltepe interest in T\u00fcrkiye, strengthening funds for its Dokwe Gold Project in Zimbabwe. The proceeds lift its pro forma cash balance to \u00a320.68 million, helping finance the project\u2019s definitive feasibility study without shareholder dilution. Read more<\/a><\/p>\n Zanaga Iron Ore Co Ltd (AIM:ZIOC, FRA:6ZA)<\/a> said discussions with Red Arc Minerals are continuing, with progress made towards securing up to US$500 million in strategic funding. The potential backing comes from a government-supported development finance institution, which has issued a letter of intent for the company\u2019s flagship iron ore project in the Republic of Congo. Read more<\/a><\/p>\n Futura Medical PLC (AIM:FUM, OTC:FAMDF, FRA:GYX)<\/a> has cleared the way for its stronger Eroxon Intense erectile dysfunction gel to launch across the UK and Europe. The upgraded formulation showed positive results in a home-user study, and partner Cooper Consumer Health can now roll it out. Futura is also targeting US approval later this year. Read more<\/a><\/p>\n Quadrise PLC (AIM:QED)<\/a> has given its Moroccan representative until the end of 2026 to help secure a commercial MSAR fuel supply agreement. A successful deal would unlock 12 million warrants for Younes Maamar, who is supporting the company\u2019s local opportunities. The warrants will only vest after a publicly announced agreement tied to an active project. Read more<\/a><\/p>\n 9.45am: Footsie remains buoyant\u00a0<\/p>\n The FTSE 100 has held onto most of the morning’s gains, though is now slightly below its new intraday high, with a gain of 73 points to\u00a010,969.86.<\/p>\n “The FTSE 100 has been waiting patiently since late February to recapture its previous record highs, and the catalyst seems finally to have arrived,” commented Richard Hunter, head of markets\u00a0at Interactive Investor.\u00a0<\/p>\n “The primary index has reemerged as a haven destination as investors have increasingly sought options away from the beleaguered AI trade.”<\/p>\n Given that the index is widely seen as a stable, defensive and undervalued investment destination, Hunter noted that its selection of strong and developed companies is attracting global inflows, with additional boosts coming from its exposure to oil and mining stocks as well as a revitalised banking sector.<\/p>\n “The average dividend yield across the index of 3% is another attraction and adds to the total returns on offer to investors,” Hunter added.<\/p>\n 9am: New high for FTSE 100<\/p>\n The FTSE 100 has shot past yesterday’s intraday high in early trading, gaining 85 points to\u00a010,981.71.<\/p>\n The overnight tech rally, which continued through to Asian markets this morning, has pushed\u00a0Polar Capital Technology Trust PLC (LSE:PCT)<\/a>\u00a04.3% higher, while Natwest is also doing some of the heavy lifting. Its shares are up 3.8%.\u00a0<\/p>\n After toppling 9% in early trades, Melrose Industries has recovered somewhat and is now down 3.1%.\u00a0<\/p>\n The aerospace and defence company delivered a solid first half, with revenue up 10% and adjusted operating profit rising 16%, driven by strong demand across its aerospace business. The group also boosted its interim dividend by 13% and reaffirmed its full-year guidance, excluding disruption from the Garden Grove facility in the US.<\/p>\n However, a\u00a0chemical tank incident at the end of May at its GKN Aerospace<\/a> Garden Grove facility in the US dented profits and has prompted a pause to its share buyback programme while it assesses the financial impact. Even so, chief executive Peter Dilnot said momentum remains strong, supported by operational improvements and continued growth in both civil aerospace and defence.<\/p>\n 8.15am: Footsie eyes new high<\/p>\n After a tentative start, the FTSE 100 has found its feet and looks set to test yesterday’s\u00a0intraday record high of\u00a010,979.60.\u00a0About 15 minutes into the session, London’s blue-chip index is up 64 points at\u00a010,961.09.<\/p>\n Sainsbury\u00a0is leading the charge this morning, up 6.2% following news of the Argos disposal to Swift Partners.\u00a0<\/p>\n Polar Capital Technology Trust PLC (LSE:PCT)<\/a>\u00a0has jumped 3.8%, benefitting from the overnight rebound in tech stocks, and\u00a0Rentokil Initial PLC (LSE:RTO)<\/a>\u00a0has gained 2.6%, recovering some of yesterday’s steep losses after it released half-year results. Natwest has gained 2.7% on the back of its interim\u00a0results.\u00a0<\/p>\n Miners are also doing well this morning, with\u00a0Anglo American PLC (LSE:AAL)<\/a>,\u00a0Antofagasta PLC (LSE:ANTO)<\/a>,\u00a0Glencore PLC (LSE:GLEN)<\/a>\u00a0and\u00a0Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF, FRA:6E2)<\/a>\u00a0all gaining between 1.5% and 2.5%.<\/p>\n On the loser board,\u00a0Melrose Industries PLC (LSE:MRO, OTC:MLSPF)<\/a>\u00a0has sunk 9% after releasing half-year results. More on them shortly.\u00a0IG Group Holdings Plc (LSE:IGG)<\/a>\u00a0is down 4.6% and\u00a0Pearson PLC (LSE:PSON)<\/a>\u00a0has shed 4% after it released interim results.\u00a0<\/p>\n 7.55am: Blue chips to watch<\/p>\n Ahead of the market open, here are a few blue-chips out with news this morning.\u00a0<\/p>\n NatWest Group PLC (LSE:NWG)<\/a> lifted its full-year guidance after first-half profit jumped on higher income and tighter cost control. The lender also brought forward plans for another share buyback, alongside a 12p interim dividend, as earnings and returns improved. Chief executive Paul Thwaite said the bank’s strategy continues to deliver, while the recently completed Evelyn Partners acquisition helped drive further growth in customer assets. Read more<\/a><\/p>\n ITV PLC (LSE:ITV)<\/a> said it remains on track to meet full-year guidance after delivering a solid first half, with growth in ITV Studios and strong digital advertising helping offset a softer production mix. ITVX viewing jumped 27%, while digital ad revenue climbed 13%. The broadcaster also maintained its interim dividend, announced a \u00a3100 million share buyback and said its proposed sale of Media & Entertainment to Sky is progressing through regulatory review. Read more<\/a><\/p>\n Taylor Wimpey PLC (LSE:TW.)<\/a> cut its shareholder payout policy after first-half profit fell nearly 20%, with softer housing demand and rising build costs continuing to weigh on performance. The housebuilder also trimmed its full-year completions outlook, saying buyers remain price conscious and sales are taking longer to complete. Despite the tougher market, Taylor Wimpey expects cash generation to improve in the second half as it keeps a tight grip on costs. Read more<\/a><\/p>\n J Sainsbury PLC (LSE:SBRY)<\/a> is selling Argos to Swift Partners for at least \u00a3120 million as it sharpens its focus on its core grocery business. The deal is expected to cut debt, improve cash flow and provide a small boost to earnings, while long-term commercial agreements will keep Argos stores, Habitat and Nectar partnerships in place. Sainsbury’s also reaffirmed its full-year guidance, with completion expected in early 2027. Read more<\/a><\/p>\n 7.45am: Asian markets rally\u00a0<\/p>\n Asian markets staged a dramatic rebound overnight, led by South Korea’s Kospi, which surged more than 16%, while Japan’s Nikkei climbed over 4%. Deutsche Bank’s Jim Reid called it a packed morning, joking, “it’s hard to know where to start” between the Kospi\u00a0move, the yen’s swings and the Bank of Japan’s decision.<\/p>\n The BoJ held interest rates steady while raising its economic growth outlook, signalling confidence that policy normalisation remains on track following last month’s hike to the highest level since 1995. Board member Hajime Takata dissented in favour of a further increase, though Reid noted the bank had expected two dissenters, calling the outcome “a touch dovish.” The BoJ also trimmed its core inflation forecast to 2.5%, citing government subsidies and falling energy prices.<\/p>\n The yen remains volatile after suspected FX intervention sent it surging more than 2% in just half an hour on Thursday, before easing back to around 160.77 this morning.<\/p>\n The rally in Asian equities follows a blistering session on Wall Street, where Microsoft’s results triggered its best day since 2008 and the largest single-day market-cap gain for any company ever, at $450 billion, fuelling a broader tech-led rebound.<\/p>\n FTSE 100 Live: Stocks look set to test new high<\/p>\n The FTSE 100 is expected to open higher this morning, building on Thursday’s fresh intraday high, as a powerful Wall Street rebound and a broad Asian rally provide a strong tailwind heading into Friday’s session.<\/p>\n Futures point to the blue-chip index opening around 50 points up, after retreating from record levels to close 11 points down at 10,897 on Thursday.<\/p>\n Tickmill Group’s Patrick Munnelly described the mood in Asia as “a spectacular relief rally,” though he cautioned that it looks more like a repair than a reset. Battered chipmakers were aggressively bought back after Wall Street’s tech recovery and strong Amazon earnings revived confidence in AI-linked demand, he said, even as the month’s damage remains severe,\u00a0particularly in Korea, where the KOSPI is still on course for its worst monthly decline since the 1997 Asian financial crisis.<\/p>\n In the US, the Nasdaq surged 2.8% as tech stocks powered a comeback, while the S&P 500 climbed 1.7% and the Dow added 1.2%. Munnelly pointed to Amazon as “the cleanest positive signal” of the session, with shares jumping more than 9% after-hours on strong cloud growth, while Apple fell over 6% after disappointing services revenue and guidance.<\/p>\n Microsoft also helped drive the rebound, posting the largest single-day increase in market value ever and lifting broader sentiment, a day after stocks had tumbled on the Fed’s hawkish tone.<\/p>\n","protected":false},"excerpt":{"rendered":"
FTSE 100 falls 29\u00a0points to 10,868
South Korea leads Asian market\u00a0rally
Sainsbury jumps on Argos disposal\u00a0
Melrose…\n","protected":false},"author":2,"featured_media":721432,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[84,59,56,54,55],"class_list":["post-721431","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-gb","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/721431","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=721431"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/721431\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/721432"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=721431"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=721431"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=721431"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}