Gold and Bitcoin prices are in focus after they traded at record levels earlier today.
The precious metal is near $4000 an ounce, while the cryptocurrency started the session at an all-time high of $125,000
On the corporate front, retail business B&M today cut earnings guidance after reporting a worse-than-expected sales performance in the UK.
FTSE 100 Live Tuesday
- Shell posts strong update
- Discounter's UK sales weaken
- House price growth weakens
Market update: Shell and Imperial rally in FTSE 100, CVS shares up 9%
10:21 , Graeme EvansThe shares of FTSE 100 index staples Shell and Imperial Brands today made strong progress in a session when gold and Bitcoin fell back from record levels.
Quarterly production figures helped Shell advance 2%, while an update by Imperial lifted its shares by 3% and those of British American Tobacco by 2%.
The FTSE 100 index edged 6.33 points higher to 9485.46, in keeping with the lacklustre performance of European and Asia markets.
The gold price showed initial signs of testing the $4000 threshold before retreating to near its opening mark at $3950 an ounce.
It was a similar story for Bitcoin, which faded after trading above $125,000 last night.
The oil price stayed near a four-month low at $65.43 a barrel, a level that failed to dampen enthusiasm towards Shell’s third quarter update.
The energy giant rose 47.5p to 2784.5p after its LNG business reported notably higher quarter-on-quarter volumes alongside improving margins in refining.
AJ Bell investment director Russ Mould said: “Shell’s big bet on natural gas – which is more than a decade in the making – continues to yield positive results.”
The update boosts hopes for another $3 billion-plus buyback of shares when the oil giant posts third quarter results on 30 October.
Imperial Brands said today it planned to extend its ongoing buyback programme by £1.45 billion.
It said: “Taking dividends and buyback together, we expect our capital returns to shareholders will exceed £2.7 billion in the coming fiscal year, representing around 11% of our current market capitalisation.
“Over the past five years from 2021 to 2025, we have delivered a cumulative £10 billion of capital returns to shareholders.”
The shares rose 74p to 3078p at the top of the FTSE 100, while BAT rallied 84p to 3869p.
Other risers in the top flight included Rentokil Initial after an improvement of 9.1p to 403.6p and Burberry following a gain of 19p to 1221p.
In the FTSE 250 index, B&M European Value Retail slid 9% or 23.5p to 232.7p after it downgraded earnings guidance on the back of a 1.1% decline in second quarter like-for-like sales in the UK.
Tjeerd Jegen, who became chief executive in June, said that B&M’s value proposition remains strong but that operational execution has been weak.
He added: “Our response is a decisive plan, ‘Back to B&M Basics’, focused on returning the UK business to sustainable like-for-like growth. This is our absolute priority.
Elsewhere, veterinary business CVS rose 9% or 114p to 1364p after reporting that like-for-like sales momentum had continued into the first quarter of the new financial year.
Alongside 9.4% growth in annual underlying earnings to £134.6 million in today’s results, CVS highlighted significant opportunities in Australia.
Angling Direct shares rose 4p to 57p after the AIM-listed fishing tackle and equipment retailer upgraded guidance on the back of half-year results. It reported revenues growth of 10.8% in August and September.
Imperial Brands extends buyback plan, shares up 3%
09:38 , Graeme EvansImperial Brands shares today rallied 3% after the tobacco giant added another £1.45 billion to its ongoing share buyback programme.
The group behind brands including Davidoff, Rizla and blu said recent trading met guidance, with growth in both tobacco and its next generation products (NGP) division.
Derren Nathan, Hargreaves Lansdown head of equity research, said: “The group’s been charging smokers more to satisfy their habit, in order to offset volume declines.
“And demand for NGP such as vapes is proving to be more robust, with revenue expected to increase 12-14%.
“However, given the relatively small contribution to the mix, a key question for incoming CEO Lukas Paravicini, is how to accelerate growth in this category. Imperial’s certainly got the financial firepower to make the required investments.”
The shares rose 3% or 81p to 3085p.
Shell shares rally after strong Q3 trading update
09:25 , Graeme EvansShell shares have rallied on the back of its third quarter trading update, which included guidance for a stronger performance in its integrated gas division.
Liquefied natural gas volumes are expected to be in the region of seven million to 7.4 million tonnes compared with 6.7 million in the previous quarter.
Upstream production is also higher at between 1.79 million and 1.89 million barrels of oil equivalent per day, compared with 1.73 million in the second quarter.
The refining margin in chemicals and products rose from $8.9 to $11.6 per barrel.
Third quarter results are due for release on 30 October, when the company is likely to announce details of another buyback programme worth $3 billion or more.
Shares today rose 2% or 50p to 2787p, representing an uplift of more than 10% this year despite a 12% decline in the oil price.
Richard Hunter, head of markets at Interactive Investor, said: “This update means that two core considerations are unlikely to change.
“Firstly, that the company remains a core constituent of many traditional portfolios alongside the old adage of “never sell Shell” and secondly, that the market consensus of the shares as a buy and the preferred play in the sector over BP will stay in place.”
Shell and Imperial advance in FTSE 100, B&M shares down 12%
08:30 , Graeme EvansA positive reaction to updates by Shell and Imperial Brands today underpinned a robust session by the FTSE 100 index, which lifted 14.35 points to 9493.49.
Shell rose 2% or 48p to 2785p after the oil giant reported a strong performance by its gas trading arm in the third quarter of the year.
Imperial Brands added 2% or 68p to 3017p, boosted by the announcement of a further share buyback programme worth £1.45 billion.
Rentokil Initial led the FTSE 100 index, up 4% or 15.5p to 410p.
In the FTSE 250 index, B&M European Value Retail slid by 12% or 30.6p to 225.6p after downgrading earnings guidance for the year.
B&M cuts guidance, CEO launches back to basics plan
07:51 , Graeme EvansB&M European Value Retail today cut earnings guidance after seeing UK like-for-like sales fall by a worse-than-expected 1.1% in the second quarter
The FTSE 250-listed company now expects full-year earnings of between £510 million and £560 million, down from last year’s £620 million.
Tjeerd Jegen, who became chief executive in June, said that B&M’s value proposition remains strong but that operational execution has been weak.
He added: “Our response is a decisive plan, ‘Back to B&M Basics’, focused on returning the UK business to sustainable like-for-like growth. This is our absolute priority.
“We have already sharpened our price position, and we are moving with pace to refocus our ranges, improve on-shelf availability and bring back excitement to our stores.
“We have more work to do, but we are confident these changes will restore consistent like-for-like sales growth over time.”
House prices down in September - Halifax
07:12 , Graeme EvansThe average UK house price edged down by 0.3% or £794 to £298,184 in September, mortgage lender Halifax said today.
Over the past 12 months prices have grown by 1.3%, the slowest annual rate since April 2024.
Halifax said the slight monthly dip reflected a housing market that has remained broadly stable, with prices up 0.3% since the start of the year.
Amanda Bryden, Halifax head of mortgages, said: “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.”
Gold price hits new record, FTSE 100 set for a flat start
07:03 , Graeme EvansThe gold price rally continued earlier today after the precious metal hit a record peak of more than $3970 an ounce.
The ongoing US government shutdown and Federal Reserve interest rate cut speculation have lifted the safe haven asset from $3230 in mid-August.
Deutsche Bank said the price has risen 50% year-to-date, the fastest annual gain since 1979 when the value jumped 127% amidst a surge in inflation.
Meanwhile, Bitcoin fell back this morning after yesterday closing above the $125,000 mark for the first time.
On Wall Street last night, a strong session for tech stocks helped the S&P 500 index to rise 0.4% and the Nasdaq Composite by 0.7%. The Dow Jones Industrial Average closed down 0.1%.
The FTSE 100 index is set for a steady start after yesterday falling from Friday’s record high to close 12.11 points lower at 9479.14. The Nikkei 225 lifted another 0.3% this morning after surging 4.75% on Monday.
