FTSE 100 Live Thursday
- Tesco hails sales progress
- Poundland sold for nominal fee
- Exports to US in record fall
Market update: FTSE 100 firm despite headwinds, Tesco and Halma rally
10:08 , Graeme EvansTesco and Halma today provided the buying interest in a session when geopolitical concerns and a below par UK GDP reading weighed on the FTSE 100 index.
The supermarket surged 2% to near February’s decade high, up 8.3p to 393.6p after impressing with UK like-for-like sales growth of 5.1% in the quarter to 24 May.
In the face of “intensely competitive” trading conditions, Tesco said its Finest premium range had gone from “strength to strength” with sales up 18%.
Ben Kumar, head of equity strategy at 7IM said: “Tesco is trying to be all things to all people; price-matching the low-cost Lidl and Aldi, but also offering enough high-quality goods that you don’t need to head to M&S for quality.
“It’s a tough ask, but what they want to do is get back to the world where the UK spends £1 of every £3 on food in Tesco.”
A trademark set of results by Halma meant the owner of life-saving technology companies topped the FTSE 100, up 5% or 142p to 3162p.
On top of a 22nd consecutive year of profit growth and 46th year in a row of dividend growth of 5% or more, Halma gave 2026 margin guidance at the top end of City hopes.
Among the other risers in the top flight, BT Group continued its strong run by adding another 5.7p to 186.5p and Vodafone lifted 1.1p to 73.4p.
BP rose 7.2p to 380.8p and Shell lifted 30p to 2611.5p after yesterday’s surge in Brent Crude price to near $70 a barrel.
The two-month high for the benchmark was driven by fears of supply disruption due to an escalation of tensions between the US and Iran.
The geopolitical uncertainty fuelled a weak session for European markets, despite the boost of this week’s framework agreement on trade between US and China.
The Dax reversed 1.2% in Frankfurt and the Cac 40 lost 0.8% in Paris, whereas the support of the oil sector meant the FTSE 100 index edged 2.11 points higher to 8866.46. The record close is 8871, which was set in March.
Ex dividend stocks Land Securities and JD Sports Fashion were among the leading fallers.
The read-across from a bigger-than-expected 0.3% contraction in the UK economy in April contributed to a 0.6% fall for the FTSE 250 index - down 134.84 points to 21,293.70.
FTSE 100 holds firm amid oil support, Tesco up 2%
08:42 , Graeme EvansThe FTSE 100 index has posted a better-than-expected performance after benefiting from the support of stronger oil stocks.
BP rose 6.9p to 380.5p and Shell lifted 31.5p to 2613p after US-Iran tensions caused the Brent Crude price to rise to $69 a barrel.
With gold also trading to near $3350 an ounce, Endeavour Mining added 32p to 2268p and Fresnillo lifted 16p to 1404p.
Halma topped the risers board, up 9% or 264p to 3284p after lifting margin guidance alongside another robust set of annual results.
Tesco shares lifted 2% or 7.5p to 392.8p after its first quarter trading update.
The FTSE 100 index rose 1.78 points to 8866.13, which compared with initial expectations for a 0.3% decline. Ex dividend stocks Land Securities and JD Sports Fashion were among the leading fallers.
The FTSE 250 index slipped 82.95 points to 21,345.59.
Tariffs trigger record slide in exports to US
08:34 , Graeme EvansExports to the United States fell in April at the fastest pace since records began in 1997, the Office for National Statistics said today.
The £2 billion decline followed four months of increases and was led by machinery and transport as tariffs on goods imported in the US came into force.
Imports from the UK were subject to a blanket 10% tariff, with imports of steel and aluminium and cars and car parts subject to a higher 25% tariff.
A trade deal signed on 8 May lowered the tariff on UK car exports and removed tariffs on UK aluminium and steel exports.
The ONS said the value of goods exports decreased by £2.7 billion or 8.8% in April, with falls in exports to both the EU and non-EU countries.
Discounter Poundland sold for £1
08:21 , Graeme EvansDiscount chain Poundland is set to shut dozens of stores after being sold for £1 to investment firm Gordon Brothers.
Pepco Group, which has owned Poundland since 2016, said it has completed the sale of the business for a “nominal” fee.
Poundland’s more than 800 stores and roughly 16,000 employees will be transferred to the ownership of Gordon Brothers, which owns brands including Laura Ashley.
However, as part of the deal, Poundland is set to undergo a restructuring plan. Poundland said the details will be communicated “in due course”.
Halma extends run of profit growth, shares jump
08:16 , Graeme EvansFTSE 100-listed Halma today recorded its 22nd consecutive year of profit growth and the 46th consecutive year of dividend growth of 5% or more.
The global group of life-saving technology companies posted a record revenue figure of £2.25 billion after growth of 11% in the year to 31 March.
This led to an all-time high adjusted profit of £459.4 million, up 16% on a year earlier. The total dividend lifted 7% to 23.12p a share.
Chief executive Marc Ronchetti said the performance had been achieved amidst varied market conditions and a challenging economic and geopolitical backdrop.
He highlighted the benefits of a diverse portfolio of companies each with strong positions in their markets and growth underpinned by long-term drivers.
Shares opened 7% or 226p higher at 3246p as Halma reported a positive start to the 2026 financial year, including a strong order book. The margin is expected to be modestly above the target range of 19%-23%.
Shares have risen by about 20% this year and 38% in the past year.
Wall Street seen lower amid global uncertainty
07:46 , Graeme EvansWall Street futures are pointing to another session in the red, with IG also expecting the FTSE 100 index to open about 30 points lower.
IG said: “Global stocks and the dollar retreated amid a backdrop of fragile US-China trade relations, heightened geopolitical tensions in the Middle East, and softer-than-expected US inflation data.
“Although President Trump hailed a new framework deal with China that included easing rare earth export restrictions and student access to US universities, markets responded cautiously, awaiting concrete implementation details.
“Investors were further rattled by Trump's erratic tariff announcements and the threat of renewed conflict with Iran, which lifted oil near $70 a barrel and boosted safe-haven demand for gold.”
Tesco sales rally in “intensely competitive” market
07:18 , Graeme EvansSupermarket giant Tesco today reported quarterly UK like-for-like sales growth of 5.1%, having lifted its market share to 28%.
Including cash-and-carry chain Booker and operations in Ireland and central Europe, the group’s underlying sales rose 4.6% in the 13 weeks to 24 May.
Chief executive Ken Murphy said he was pleased with the performance across the first quarter.
He added: “The market remains intensely competitive, and we are committed to ensuring customers get the best value in the market by shopping at Tesco.”
The group continues to expect full-year adjusted operating profit of between £2.7 billion and £3 billion and free cash flow within its medium-term guidance range of £1.4 billion and £1.8 billion.
Hargreaves Lansdown analyst Aarin Chiekrie said: “Earlier this year, headlines about Asda slashing prices to win back market share raised concerns of a looming price war in the grocery sector. But so far, those fears haven’t played out.”
He added: “Tesco looks to be on solid footing with plenty of free cash flow pumping around the business.
“The British powerhouse is arguably the most competitive it’s been for many years, with the Aldi price match and Clubcard prices keeping its customers loyal.”
UK economy suffers April setback
07:08 , Graeme EvansThe UK economy contracted by more than expected in April, figures from the Office for National Statistics showed today.
The 0.3% monthly decline compared with the City’s forecast for a 0.1% fall and represented the worst monthly performance since October 2023.
The reverse during a month of steep rises in household bills and employer costs follows growth of 0.2% in March and 0.7% in the first quarter.
Capital Economics said: “The 0.3% month-on-month fall supports our view that the strength in the first quarter was unsustainable.
“This won’t prompt the Bank of England to cut interest rates next Thursday. But it is one more piece of news pointing to another cut in August.”
Monthly services output fell by 0.4% in April and was the largest contributor to the fall in GDP in the month. It still grew by 0.6% in the three months to April.
Production output fell by 0.6% and construction by 0.9%.
FTSE 100 seen lower, oil price near $70 a barrel
07:00 , Graeme EvansThe FTSE 100 index is set to open lower after Wall Street markets yesterday failed to make headway and Asia stocks traded in the red.
The S&P 500 index fell 0.3% and the Nasdaq Composite lost 0.5%, despite US inflation figures below forecast and an outline trade agreement with China.
The FTSE 100 index yesterday rose 0.1% at its second highest close in history of 8864.35 but is seen about 0.3% lower at today’s opening bell.
In Asia, the Hang Seng index and Nikkei 255 are 1% and 0.6% lower respectively.
Oil prices are in focus at $69.40 a barrel after the benchmark rallied yesterday on the back of an escalation of tensions between the US and Iran.
