ADVFN UK Market News

Author: Fiona Craig

  • US Stock Futures Dip as Markets Await Fed Minutes and Corporate Updates: Dow Jones, S&P, Nasdaq, Wall Street

    US Stock Futures Dip as Markets Await Fed Minutes and Corporate Updates: Dow Jones, S&P, Nasdaq, Wall Street

    US equity futures edged lower on Wednesday ahead of the release of minutes from the Federal Reserve’s September meeting, while investors also assessed developments involving SpaceX and Constellation Brands and awaited results from Levi Strauss.

    At 06:56 GMT, Dow futures were down 108 points, or 0.2%, while S&P 500 futures were broadly flat. Nasdaq 100 futures declined 28 points, or 0.1%.

    Wall Street’s main indices finished slightly higher in the previous session but closed below their earlier intraday levels.

    Government bond markets also remained in focus following recent selling in US and French debt. Benchmark 10-year yields moved higher, while Vital Knowledge analysts questioned whether “this asset class can sustain a material rally”, citing artificial intelligence investment and an expected “tidal wave” of debt issuance.

    Oil prices initially declined before reversing course as markets continued to assess crude flows from the Middle East, shipping costs and supplies of refined products.

    Fed September Meeting Minutes in Focus

    The Federal Reserve is scheduled to publish minutes from its September policy meeting, when it increased interest rates for the first time since 2023.

    Projections released alongside that decision indicated that further rate increases could follow before the end of the year as the central bank responds to inflation remaining above its 2% target.

    Expectations for another increase at the Fed’s next meeting have since moderated. Comments from Fed officials have indicated a more cautious approach, while recent employment figures were weaker than expected.

    Investors will examine the minutes for additional information about policymakers’ assessments of inflation, employment and the appropriate path for interest rates.

    SpaceX Reportedly Plans $40 Billion Financing for Nvidia Chips

    SpaceX (NASDAQ:SPCX) is seeking approximately $40 billion of financing to purchase Nvidia (NASDAQ:NVDA) chips, the Financial Times reported, citing people familiar with the plans.

    According to the report, the financing could comprise around $10 billion of bank loans and $30 billion of investment-grade debt.

    Apollo Global (NYSE:APO) is expected to lead the transaction and assist in marketing the debt. Pimco is also reportedly among a small group of potential lenders.

    The proposed financing would fund purchases of computing equipment for artificial intelligence infrastructure. Elon Musk has previously said SpaceX plans to use Nvidia chips exclusively in its Colossus data centres.

    Constellation Brands Falls Despite Earnings Beat

    Constellation Brands (NYSE:STZ) shares moved lower in after-hours trading despite second-quarter sales and adjusted earnings exceeding market forecasts.

    Net sales increased 6% to $2.63 billion in the quarter ended August 31, while adjusted earnings per share were $3.74. Both figures exceeded Wall Street expectations based on LSEG data cited by Reuters.

    Beer depletions declined 0.6%, which TD Cowen analysts said was 70 basis points below expectations.

    The company maintained its full-year financial guidance. TD Cowen said the outlook implies second-half sales “will be down [roughly] 2% at the midpoint.”

    Constellation also completed its acquisition of vodka-based ready-to-drink beverage company SpikedAde. It will initially pay $75 million, with potential additional payments of up to $278 million over five years.

    Levi Strauss Earnings Scheduled After Closing Bell

    Levi Strauss (NYSE:LEVI) is scheduled to release its results after the market closes.

    The shares have declined more than 1% since the start of the year, despite the company raising its full-year profit forecast in July.

    Chief Executive Michelle Gass said at the time that Levi Strauss was seeking to address a “sizable premium segment” it had not previously reached. The company has also expanded its direct-to-consumer business and introduced looser-fitting products aimed at younger customers.

  • Market Open: Shell Refining Margins, Hollywood Bowl Record Revenue

    Market Open: Shell Refining Margins, Hollywood Bowl Record Revenue

    FTSE 100 opens flat as bond yields weigh, while Shell flags higher refining margins, Hollywood Bowl posts record revenue and Bitcoin falls.

    Market Overview

    The FTSE 100 opened broadly flat but slightly higher at 10,542.18, up 0.001 per cent from its previous close, as rising US government bond yields and weakness among mining stocks weighed on sentiment. The Euronext 100 slipped 0.07 per cent, while Germany’s DAX fell 0.88 per cent as European equities faced renewed oil supply concerns and caution ahead of Federal Reserve minutes. On Wall Street, the Nasdaq closed higher at 27,599.89, while the S&P 500 also advanced to 7,818.93.

    Commodity markets were mixed, with copper and gold lower, natural gas higher and Brent crude edging down despite continued focus on supply risks from storms and Middle East tensions. Bitcoin weakened against sterling. The US dollar, Swiss franc and Japanese yen strengthened against the pound, while the euro and Australian dollar weakened.

    Market Numbers

    FTSE 100: Higher (+0.001%), 10,542.18
    Euronext 100: Lower (-0.07%), 1,882.29
    DAX: Lower (-0.88%), 25,225.22
    NASDAQ: Higher, 27,599.89
    S&P 500: Higher, 7,818.93

    In the Headlines

    Higher refining margins – Shell (LSE:SHEL)
    Shell expects its indicative refining margin to rise to around $42 per barrel in the third quarter, while upstream production is forecast to remain broadly stable. Net debt is expected to increase following the ARC Resources acquisition, putting the balance sheet alongside improved refining economics in focus.

    Record annual revenue – Hollywood Bowl Group (LSE:BOWL)
    Hollywood Bowl reported record FY26 revenue of £261.6 million, up 4.3%, with growth across its UK and Canadian operations. The leisure group expects adjusted profit before tax growth to remain in line with market expectations as it continues expanding its centre estate.

    Currencies (vs GBP)

    USD: Higher (+0.14%), $1.3248
    CHF: Higher (+0.15%), Fr.1.1027
    EUR: Lower (-0.19%), €1.1812
    JPY: Higher (+0.12%), ¥209.7415
    AUD: Lower (-0.01%), $1.9006
    Bitcoin (BTC/GBP): Lower, £63,587.70

    Commodities

    Copper: Lower
    Gold: Lower
    Brent Crude: Lower
    Natural Gas: Higher

  • European Stocks Fall as Oil Prices Rise Ahead of FOMC Minutes: DAX, CAC, FTSE100

    European Stocks Fall as Oil Prices Rise Ahead of FOMC Minutes: DAX, CAC, FTSE100

    European equities traded lower on Wednesday as crude oil prices increased and investors awaited the release of minutes from the Federal Reserve’s latest policy meeting.

    The pan-European STOXX 600 declined 0.4% after reaching a near one-week high in the previous session.

    Germany’s DAX fell 0.8%, while the FTSE 100 in London declined 0.4%. Spain’s IBEX 35 was down 0.6%, while France’s CAC 40 also fell 0.6%.

    Oil prices moved higher as markets assessed geopolitical risks following missile and drone attacks by Yemen’s Houthi forces targeting Saudi Aramco energy facilities in Saudi Arabia.

    French Fiscal Outlook Remains in Focus

    European equities had recently fallen to their lowest levels since June amid a sell-off in government bonds following the presentation of France’s draft budget.

    Concerns surrounding French government debt and the country’s political outlook pushed the French 10-year government bond yield to levels last seen in 2002, while the spread over German government bonds widened beyond 140 basis points.

    European markets subsequently recovered some ground after plans were outlined to reduce French government spending by €54 billion and lower structural deficits.

    However, uncertainty remains over France’s fiscal and political outlook ahead of the country’s 2027 presidential election.

    Investors Await FOMC Minutes and Third-Quarter Earnings

    Attention is also turning to the Federal Open Market Committee minutes from the Federal Reserve’s previous policy meeting, which are due later on Wednesday.

    Investors will be looking for further information on policymakers’ views regarding the outlook for US interest rates.

    Money markets currently indicate an approximately 78% probability that the Federal Reserve will leave interest rates unchanged at its next meeting, according to the supplied information.

    European investors are also preparing for the third-quarter corporate earnings season, which is due to begin next week.

    Company guidance will provide further information on the impact of higher energy costs, elevated borrowing costs and consumer demand on corporate margins and earnings expectations.

  • UBS Expects European Earnings Growth to Continue Despite Higher Rates and Energy Prices

    UBS Expects European Earnings Growth to Continue Despite Higher Rates and Energy Prices

    UBS expects the upcoming third-quarter earnings season to show further improvement in European corporate profits, while maintaining a positive view on eurozone equities despite higher interest rates and energy prices.

    Matthew Gilman, head of European equity strategy at UBS Global Wealth Management’s Chief Investment Office, said revenue is becoming a more significant contributor to profit growth alongside “an already well-established cost discipline.” He added that currency effects are shifting from a headwind to a source of support.

    UBS expects eurozone earnings to grow 15% in both 2026 and 2027.

    Gilman cited global manufacturing purchasing managers’ indices for September and Germany’s Ifo survey as indicators of underlying demand. The bank expects structural investment trends to continue despite broader economic pressures.

    UBS Sees Continued Investment in AI, Electrification and Defence

    Gilman said investment in artificial intelligence “still appears to be constrained more by supply than by funding.”

    UBS expects further indications during the earnings season that the economic benefits associated with AI investment are extending across a broader range of companies, following similar developments in the previous quarter.

    The bank also expects higher energy prices to support investment in electrification and defence, areas that Gilman considers relatively resilient to broader macroeconomic pressures.

    UBS is monitoring whether higher input costs and interest rates begin to affect demand or corporate margins. Gilman sees greater exposure to these pressures among consumer-focused companies, where demand remains subdued and companies have less ability to increase prices.

    However, UBS expects cost controls and investment-related demand to offset some of these pressures across much of the corporate sector.

    UBS Maintains Attractive Rating on Eurozone Equities

    UBS maintained its “Attractive” rating on the eurozone and identified information technology, industrials, banks and healthcare among its preferred sectors. The bank also favours German equities within the region.

    UBS additionally continues to recommend its “European Leaders” and “Swiss Small and Mid-Cap Prospects” investment themes.

    Gilman said discretionary consumer spending has faced pressure from higher interest rates and oil prices but expects conditions to improve if the outlook for energy flows becomes more favourable.

    Within consumer-related investments, he favours a selective approach focused on higher-end spending through UBS’s “Luxury & Lifestyle” theme, which the bank expects to be more resilient than other discretionary segments.

  • European Gas Prices Edge Higher as Weather Forecasts Turn Cooler

    European Gas Prices Edge Higher as Weather Forecasts Turn Cooler

    European and British wholesale natural gas prices moved slightly higher on Wednesday as forecasts for cooler temperatures across Northwestern Europe coincided with continued additions to European gas storage.

    The benchmark Dutch front-month gas contract rose 1.5% to €76.80 per megawatt-hour (MWh), trading near its recent multi-week highs.

    In Britain, the equivalent wholesale gas contract increased 0.5% to 189.03 pence per therm.

    Cooler Forecasts Bring Heating Demand Into Focus

    Weather forecasts for Northwestern Europe have been revised towards lower temperatures over the coming weeks, potentially bringing forward the seasonal increase in heating demand across residential and industrial markets.

    European Union gas storage facilities were approximately 73% full, according to the supplied information. Inventories have increased in recent weeks but remain below levels recorded at the same point last year.

    The combination of cooler weather forecasts and lower year-on-year storage levels has kept expected winter demand in focus, although continued injections into storage have provided additional supply ahead of the heating season.

    LNG Supply and Geopolitical Risks Remain in Focus

    European gas markets are also monitoring security risks affecting Persian Gulf shipping routes and attacks on regional energy infrastructure, given the potential implications for seaborne liquefied natural gas supplies.

    The market is additionally assessing the availability of LNG supplies and the reduction in Russian pipeline gas flows to Europe.

    UBS recently raised its fourth-quarter target for the Dutch TTF gas price to €75/MWh, citing a slower recovery in LNG supply and the reduction in Russian pipeline gas.

    Further changes in European gas prices are likely to remain sensitive to temperatures, storage levels and LNG availability during the winter period.

  • FTSE 100 Falls as US Treasury Yields Rise and Mining Stocks Decline

    FTSE 100 Falls as US Treasury Yields Rise and Mining Stocks Decline

    The FTSE 100 traded lower on Wednesday as global government bond yields rose and mining shares declined alongside metals prices.

    The UK benchmark was down 0.36% as of 07:21 GMT. Elsewhere in Europe, Germany’s DAX fell 0.83%, while France’s CAC 40 declined 0.61%. Sterling was 0.25% lower against the US dollar at $1.3245.

    Mining, financial and utility stocks were among the main decliners in London.

    Metals prices moved lower, with gold futures down 0.75% and spot gold declining 0.82%. Silver fell 1.31%, platinum lost 2% and copper was down 0.36%.

    Utility stocks also declined as bond yields increased.

    US 10-Year Treasury Yield Nears 5.32%

    The US 10-year Treasury yield traded near 5.32%, up from around 5.27% at Tuesday’s London close, while the 30-year yield was near 5.69%.

    Market attention is also focused on the Federal Reserve’s September meeting minutes, UK gilt tenders and a $39 billion US 10-year Treasury auction.

    ING strategists said, “we doubt rates will calmly settle at current levels.”

    Oil Prices Rise as Middle East Developments Remain in Focus

    Brent crude futures rose 0.72% to $101.29 a barrel, while WTI gained 0.57% to $89.91.

    Comments surrounding the Strait of Hormuz remained in focus. Former Iranian diplomat Abbas Khamayar told Al Jazeera that Hormuz is “closed in a serious sense.”

    Separately, the IRGC’s Yadollah Javani told IRNA that foreign fleets were “more than 1,000km” away. The claim had not been independently verified in the supplied report.

    Oman said 10 crew members were evacuated from the On Peace tanker after it was struck off Limah on Tuesday.

    US Vice President JD Vance told Reuters that Iran would need to make a “meaningful” reduction in enrichment, adding, “We’re not going to trade words for actions.”

    Earlier, US President Donald Trump said the war would end “the nice way or the not-so-nice way” and claimed shipments through Hormuz were at levels comparable with those before the war.

    ING’s Warren Patterson described the oil market as facing a “clear tug-of-war” between improving Gulf supply and continuing risks to flows.

  • HSBC Plans UK Wealth Management Job Cuts, FT Reports

    HSBC Plans UK Wealth Management Job Cuts, FT Reports

    HSBC Holdings (LSE:HSBA) is planning job reductions within its UK wealth management business as the bank increases its use of artificial intelligence and digitally enabled services, according to a Financial Times report on Wednesday.

    Citing people familiar with the plans, the FT reported that approximately half of management and specialist positions could be eliminated, while the number of financial advisers could be reduced by around 70%.

    The proposed changes are currently subject to a consultation process, according to the report. Employees affected by the restructuring are expected to leave at the end of October.

    The FT reported that one person familiar with the proposals described the planned reductions as “deep, wide and brutal”.

    HSBC reportedly said it continues to develop its UK wealth business with more digitally enabled products and services in response to changing customer requirements.

    HSBC Expands Use of AI

    The reported restructuring comes as Chief Executive Georges Elhedery incorporates artificial intelligence into the bank’s broader strategy to simplify its operations.

    The proposed reductions would also follow a hiring programme launched around two years ago as HSBC sought to expand its UK wealth and private banking operations.

    HSBC has not yet completed the consultation process, and the final number of positions affected by the proposed changes was not specified in the source material.

    About HSBC

    HSBC Holdings is a London-listed international banking group providing services including retail and commercial banking, wealth management and private banking.

    Its UK wealth operations provide financial products and advisory services to customers, alongside the bank’s expanding range of digitally delivered services.

  • Pennon Shares Fall 16% as Group Launches £550 Million Rights Issue and Cuts Dividend

    Pennon Shares Fall 16% as Group Launches £550 Million Rights Issue and Cuts Dividend

    Pennon Group (LSE:PNN) shares fell more than 16% on Wednesday after the water utility announced a fully underwritten rights issue of approximately £550 million and reduced its planned dividend as part of changes to its investment and financing plans.

    Pennon expects its total dividend for the 2026/27 financial year to be approximately £125 million, compared with £138 million previously. The reduction will apply to both the interim and final dividends.

    After taking account of the dividend reduction and rights issue, the company estimated an underlying reduction in dividend per share of approximately 30%, resulting in an expected payout of around 18 pence per share.

    Pennon said it intends to increase the dividend per share in line with CPIH from the new level.

    Pennon Plans £3.6 Billion of AMP8 Investment

    Proceeds from the rights issue will be used to support additional investment in Pennon’s regulated water businesses.

    The group now expects capital investment across the AMP8 regulatory period to total approximately £3.6 billion, around £1 billion above its original plan. Pennon said efficiencies identified during the programme will be reinvested.

    Under Ofwat’s cost change process, certain additional expenditure can be recognised through increases in regulatory capital value (RCV).

    In its draft decision for the 2026 cost change process, Ofwat provisionally allowed £230 million, equivalent to £190 million in 2022/23 prices. This represents 76% of the amount requested by Pennon. A final decision is expected by 15 December.

    Pennon estimates that it will make approximately £170 million of additional investment through the 2027 and 2028 cost change processes, subject to regulatory approval. The company is targeting total additional RCV of £400 million through the cost change process.

    Pennon Proposes Sale of Pennon Power

    The group also plans to sell Pennon Power. Of the anticipated proceeds, approximately £25 million would be invested in “behind the meter” renewable generation at Pennon’s operational sites, with the remaining proceeds used to reduce group debt.

    Pennon is targeting debt within its regulated water businesses of no more than 65% of RCV throughout AMP8, consistent with its long-term policy range of 55% to 65%.

    Group debt measured on the same basis is expected to remain several percentage points above the regulated businesses, although Pennon said it is unlikely to exceed approximately 70%.

    About Pennon Group

    Pennon Group is a UK-listed water utility group operating regulated water businesses.

    The group invests in water and wastewater infrastructure under the regulatory framework overseen by Ofwat, with its capital expenditure and financing plans linked to the AMP regulatory periods.

  • Central Asia Metals Maintains 2026 Guidance as Sasa Zinc and Lead Output Rises

    Central Asia Metals Maintains 2026 Guidance as Sasa Zinc and Lead Output Rises

    Central Asia Metals (LSE:CAML) said it remains on track to meet its 2026 production guidance across copper, zinc and lead following its third-quarter operating performance.

    The company’s Kounrad operation in Kazakhstan produced 3,454 tonnes of copper during the quarter.

    At the Sasa mine in North Macedonia, zinc production increased 18% year-on-year, while lead production rose 21%. Central Asia Metals attributed the increases to higher head grades and a modest increase in ore throughput.

    The company also reported higher realised prices for copper and zinc during the period. No lost-time injuries were recorded, while production for the first nine months remained consistent with the group’s full-year guidance.

    Central Asia Metals Advances Exploration Projects

    Central Asia Metals also progressed several exploration and development activities during the quarter.

    The company exercised its remaining warrants in Aberdeen Minerals, providing additional funding for the exploration company’s drilling activities in northeast Scotland.

    At the Yuzhnoe project in Kazakhstan, drilling returned wide copper intersections, with Central Asia Metals planning follow-up work to further assess the mineralisation.

    Exploration also continued at the Teniz Basin and other prospects in Kazakhstan as the company develops its regional exploration portfolio.

    Central Asia Metals is additionally progressing towards completion of its acquisition of Cygnus Metals and the associated listing on the Toronto Stock Exchange.

    The transaction would add Cygnus Metals’ copper-gold assets in Québec to the group’s portfolio.

    About Central Asia Metals

    Central Asia Metals is an AIM-listed base metals producer with operations in Kazakhstan and North Macedonia.

    The company operates the Kounrad in-situ dump-leach copper facility in Kazakhstan and the Sasa underground zinc-lead mine in North Macedonia.

    Its other activities include exploration projects in Kazakhstan, an investment in Aberdeen Minerals in Scotland and the planned acquisition of Cygnus Metals’ copper-gold assets in Québec.

  • Likewise Group Acquires Headlam Assets for £14.9 Million

    Likewise Group Acquires Headlam Assets for £14.9 Million

    Likewise Group plc (LSE:LIKE) has acquired a package of assets from Headlam Group plc (LSE:HEAD) and HFD Limited for £14.9 million in cash following the companies’ entry into administration.

    The transaction is being funded from Likewise’s existing resources following its recent equity fundraising.

    The assets acquired include Headlam’s approximately 90,000-square-foot freehold distribution centre in Thatcham, together with operating assets and inventory located at the site.

    Likewise has also acquired the trade and assets of Crucial Trading and Concept Floors, along with principal intellectual property associated with the businesses. Around 110 employees are expected to transfer as part of the transaction.

    Likewise Enters Nine-Month Inventory Agreement

    Separately, Likewise has entered into a nine-month agency agreement with Headlam’s administrators to assist with the sale of remaining inventory through its distribution network.

    As part of the arrangement, Likewise will occupy Headlam’s Coleshill site under an exclusive licence during the period.

    The company’s board said it believes the acquisition makes Likewise the largest floor coverings distributor in the UK. The transaction increases the group’s distribution capacity and adds products and customers to its existing operations.

    Likewise expects the acquisition to have a limited effect on earnings in 2026, with a positive contribution anticipated from FY27.

    The company continues to target annual revenue of £300 million.

    About Likewise Group

    Likewise Group is an AIM-listed distributor of floor coverings in the UK, supplying independent retailers and contractors through its sales and distribution network.

    The company distributes a range of flooring products and has expanded its operations through investment in its logistics network and additions to its brand portfolio.