FTSE 100 opens flat as Drax unveils AI data centre plans and ABF reports lower profits. European shares decline while Brent crude edges lower.
Market Overview
The FTSE 100 opened virtually unchanged, slipping less than 0.01 per cent to 10,761.30, as investors assessed a global technology sell-off, upcoming US midterm elections and the Bank of England’s interest rate decision. European markets declined, with the Euronext 100 falling 0.06 per cent to 1,878.92 and Germany’s DAX dropping 0.89 per cent to 25,750.69. Technology shares faced pressure following Apple’s warning about rising chip costs and concerns over AI infrastructure financing. Wall Street also closed lower on Monday, with the Nasdaq falling to 25,164.36 and the S&P 500 declining to 7,541.40.
Commodity markets were mixed, with copper declining and gold remaining unchanged, while Brent crude edged lower despite renewed Middle Eastern supply concerns following reports of a US strike on Iran’s Qeshm Island. Natural gas advanced slightly. Against sterling, the US dollar and Australian dollar weakened marginally, while the Swiss franc and Japanese yen strengthened and the euro remained unchanged. Bitcoin was also slightly lower, reflecting cautious sentiment across financial markets.
Market Numbers
FTSE 100: Down (-0.0003%), 10,761.30
Euronext 100: Down (-0.06%), 1,878.92
DAX: Down (-0.89%), 25,750.69
NASDAQ: Down, 25,164.36
S&P 500: Down, 7,541.40
In the Headlines
AI Data Centre Partnership – Drax Group (LSE:DRX)
Drax has signed a strategic partnership agreement with Brookfield and Radiant to develop an AI data centre at its power station in northern England, with potential investment exceeding £20 billion if fully developed. The proposed project could provide more than one gigawatt of computing capacity, offering Drax an opportunity to diversify its infrastructure operations, subject to regulatory approvals and investment decisions.
Annual Profit Decline – Associated British Foods (LSE:ABF)
Associated British Foods reported a 13 per cent decline in annual adjusted operating profit to £1.51 billion, reflecting weaker profitability at Primark and difficult conditions in its Sugar division. The group expects further earnings pressure in FY2027, while preparations continue for the planned separation of Primark from its food businesses.
Currencies (vs GBP)
USD: Down (-0.006%), $1.341
CHF: Up (+0.009%), Fr.1.0977
EUR: Unchanged (0.000%), €1.1982
JPY: Up (+0.008%), ¥211.741
AUD: Down (-0.001%), $1.9158
Bitcoin (BTC/GBP): Down, £56,930.63
Commodities
Copper: Down
Gold: Unchanged
Brent Crude: Down
Natural Gas: Up
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