UK equities traded slightly higher on Tuesday, supported by gains in Shell and Imperial Brands, while B&M European Value Retail tumbled after posting disappointing results and cutting its earnings guidance.
By 13:22 GMT, the FTSE 100 was up 0.2%, while the British pound slipped 0.5% against the dollar, hovering just above $1.34. On the continent, the DAX in Germany and CAC 40 in France each advanced 0.2%.
Supermarket stocks weighed on the index after Asda announced a broad round of price cuts. Tesco (LSE:TSCO) shares dropped 0.6% and J Sainsbury (LSE:SBRY) declined 1% following the news. Asda said it had reduced prices by an average of 6% across groceries, household items, and non-food categories, with some goods seeing cuts of over 30%.
Shell (LSE:SHEL) rose after releasing its third-quarter trading update, which showed stronger performance across several business units. The company reported improved liquefaction volumes, higher trading activity, and better refining margins. Analysts at Jefferies described the report as “overall a positive update”, suggesting potential 5–10% upside to consensus earnings of $4.57 billion. The improvement was largely attributed to Shell’s integrated gas and products segments, which both benefited from favorable market conditions.
Imperial Brands (LSE:IMB) also advanced after reaffirming that it remains on track to meet its FY25 guidance. The tobacco maker expects low single-digit growth in net revenues from both its traditional tobacco products and next-generation products (NGP), supported by strong pricing and double-digit NGP expansion. The group anticipates high single-digit EPS growth at constant currency, driven by profit gains and ongoing share buybacks.
In contrast, B&M (LSE:BME) shares plummeted more than 15% after the discount retailer reported a drop in first-half profit, trimmed its full-year earnings outlook, and unveiled a turnaround strategy to stabilize UK operations. Revenue for the first half of fiscal 2026 rose 4% year-over-year to £2.75 billion, but profitability fell short of expectations.
CVS Group (LSE:CVSG) surged over 10% after the veterinary services provider posted FY25 adjusted EBITDA of £134.6 million, slightly ahead of forecasts. Like-for-like sales rose 0.2%, below the company’s 4%–8% target, while adjusted EPS declined 3.8% to 80.1p due to higher costs.
In the automotive sector, Jaguar Land Rover (JLR) said it will resume production on Wednesday after a cyber incident that disrupted operations since early September. The phased restart will begin at its Electric Propulsion Manufacturing Centre and Battery Assembly Centre in the West Midlands, with employees returning to stamping operations and vehicle production at Castle Bromwich, Halewood, and Solihull.
Meanwhile, in the housing market, UK home prices slipped 0.3% in September to an average of £298,184 ($401,010), according to Halifax. It marked the first monthly decline since May, suggesting that concerns over potential tax increases may be starting to weigh on buyer demand.
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