Stock markets are under pressure amid ongoing jitters over Wall Street AI valuations.
The FTSE 100 index tracked heavy losses in the US and Asia, while the price of Bitcoin fell below $90,000 for the first time since April.
Meanwhile, the Competition and Markets Authority has opened an investigation into online pricing practices at eight firms.
FTSE 100 Live Tuesday
- CMA launches online pricing review
- Imperial shares surge on results
- Housebuilder cuts guidance
Market update: FTSE 100 down 1%, Imperial and AstraZeneca buck trend
10:04 , Graeme EvansBanks and miners traded deep in the red today as a risk averse mood swept through global markets to leave the FTSE 100 index 1% lower.
A fourth consecutive fall since Wednesday’s record close pushed the top flight down by 93.48 points to 9581.95 as traders reacted to heavy selling in the US and Asia.
AI bubble fears and the reduced prospect of a December interest rate cut last night left the S&P 500 index below its 50-day moving average for the first time since April.
Futures trading points to another US session in the red, although not by as much as had been feared at the start of London trading. Bitcoin also steadied after earlier falling below the $90,000 threshold for the first time in six months.
Asia’s stock market weakness, following declines of 3.2% for the Nikkei 225 and 1.7% for the Hang Seng index, had an impact on London-listed banks.
HSBC dropped 3% or 28.2p to 1065.2p and Standard Chartered by 44p to 1554p, while Barclays reversed 10p at 400.8p and Lloyds Banking Group eased 2p to 89p.
In the commodities sector, Anglo American fell 100p to 2694p and silver miner Fresnillo lost 96p to 2242p.
Amid a rotation to defensive sectors, market heavyweight AstraZeneca rose 152p to trade at a fresh record high of 13,744p and BAE Systems lifted 12p to 1817p.
Imperial Brands also traded at its highest level since 2017, up 3% or 84p to 3237p as income investors cheered the tobacco giant’s latest results.
Bristol-based Imperial announced a 4.5% rise in dividend, alongside 4.6% increase in adjusted operating profit.
The company behind brands including Golden Virginia, Winston and Rizla said it had distributed £10 billion through dividends and buybacks over the past four years.
The FTSE 250 index fell 1% or 211.14 points to 21,476.76, with bus and rail operator FirstGroup down 13% or 25.2p to 175.2p after reporting half-year results.
Adjusted revenues rose 30% to £833.6 million and operating profit edged higher to £103.6 million, leading to unchanged guidance for the year. However, expectations for a flat earnings performance in 2026/27 disappointed the City.
Imperial posts higher annual profit, shares up 3%
08:38 , Graeme EvansIncreased demand for smoking alternatives like oral nicotine and cigarette price hikes have helped grow profits for tobacco giant Imperial Brands.
Revenues of £32.2 billion for the year to the end of September were 0.7% lower, although the figure rose 4.1% when excluding duties and currency moves.
The group’s adjusted operating profit grew by 4.6% to £4 billion in the year.
Bristol-based Imperial reported another strong year for its “next generation” products, which include vapes, oral nicotine and heated tobacco.
Shares rose 3% or 81p to 3234p as the company behind brands including Golden Virginia, Winston and Rizla announced a 4.5% divided hike. It has distributed £10 billion through dividends and buybacks over the past four years.
Banks under pressure as FTSE 100 falls 1%, Imperial up 3%
08:19 , Graeme EvansThe FTSE 100 index has fallen 99.74 points to 9575.69, a decline of 1% on top of the 2.4% reverse since the benchmark’s record close on Wednesday.
Lloyds Banking Group fell 2% or 1.8p to 89p, NatWest dropped 11.2p to 587p and Anglo American slid 4% or 122p to 2672p.
AstraZeneca improved 154p to 13,746p amid a rotation towards London’s defensive-leaning stocks
Imperial Brands rose 3% or 88p to 3241p after posting annual results.
Crest Nicholson cuts guidance amid UK uncertainty
08:00 , Graeme EvansHousebuilder Crest Nicholson today became the latest company to warn that its performance has been impacted by Budget uncertainty.
It said adjusted profit for the year to 31 October is set to be at the low end of, or marginally below, its guidance range of £28 million-£38 million.
The former FTSE 250-listed company said the potential miss was due to a housing market that has remained subdued through the summer, and continued uncertainty surrounding tax policy ahead of the Budget.
Volumes for the year of 1691 units compared with the guidance range of 1,700-1,900 units.
Chief executive Martyn Clark said: “While near-term market conditions are expected to remain challenging, our enhanced operating discipline, improved balance sheet and clear strategic direction provide a robust platform to navigate the current environment and deliver long-term, sustainable growth."
Shares fell 9% or 14.1p to 149.3p.
CMA launches online pricing investigation
07:41 , Graeme EvansBritain’s competition regulator has opened investigations into eight companies, including ticket resellers StubHub and Viagogo , over online pricing practices.
The Competition and Markets Authority said the cases were the first launched using its new consumer protection powers and followed a “cross-economy” review of online pricing and sales practices.
The watchdog said it was also writing to 100 businesses across 14 sectors outlining concerns about their use of additional fees and sales tactics.
Wall Street weakness set to continue, Bitcoin below 2025 starting price
07:36 , Graeme EvansWall Street futures trading indicates that the S&P 500 index is set for a decline of about 0.6% at today’s opening bell.
Yesterday’s 0.9% fall contributed to the benchmark’s worst three-day run since April.
Deutsche Bank said the S&P 500 index also dipped below its 50-day moving average, often viewed as an important technical threshold, for the first time in 139 sessions.
It added: “While AI weakness was a key driver, sending the Philadelphia Semiconductor Index 1.55% lower, it was a day of broad weakness with 407 decliners within the S&P 500, the most in five weeks.”
Concerns swirling around the AI trade left Nvidia shares 2% lower ahead of third quarter earnings on Wednesday night. Reduced expectations for a December interest rate cut by the Federal Reserve also fuelled the selling.
Bitcoin is now below where it started the year and about 30% down on its year-to-date peak seen in October.
FTSE 100 seen lower as Nikkei slides 3%, Bitcoin fall continues
06:59 , Graeme EvansThe FTSE 100 index is set for a fall of more than 1% as traders in London react to overnight losses on Wall Street and in Asia.
Jitters ahead of Nvidia results and Thursday’s labour market report meant the Dow Jones Industrial Average fell 1.2% and the S&P 500 index by 0.9%.
The decline continued in Asia trading as the Nikkei 225 fell more than 3%, driven by technology valuation fears and Japan’s diplomatic row with China. The Hang Seng index reversed 2%.
The FTSE 100 index closed 0.2% lower at 9675.43 on Monday, with IG futures pointing to a decline of about 130 points or 1.3% at today’s opening bell.
Gold and Brent Crude have fallen to $4014 an ounce and $63.79 a barrel respectively, while Bitcoin continues to decline after falling another 3% to below $90,000.
The cryptocurrency had been near to $125,000 in early October.
