Asia markets have rallied and the FTSE 100 index is higher during a strong start to the week for global markets.
The mood has been lifted by hopes that the US and China will reach a deal before President Trump imposes additional tariffs from 1 November.
The focus later this week turns to inflation figures and updates by leading banks including Barclays and NatWest.
FTSE 100 Live Monday
- Retailer cuts guidance
- House prices subdued
- Pension funds partnership
Market update: FTSE 100 higher as Prudential and Rolls rally, B&M down 17%
09:57 , Graeme EvansA strong performance by Asia markets today set the tone for an improved session in London as the FTSE 100 index recovered from Friday's 0.9% reverse.
Hopes that the US and China will reach a deal before President Trump imposes additional tariffs on 1 November helped the Hang Seng index rally 2.4%.
China’s latest GDP figures also offered reassurance as the decline in the third quarter annual rate to 4.8% was smaller than many feared.
In Tokyo, the Nikkei 225 closed at a record level after surging more than 3% on expectations that Sanae Takaichi will become Japan’s first female prime minister.
The shares of Asia-focused Standard Chartered and Prudential rose 2% as the FTSE 100 index climbed 0.4% or 37.75 points to 9392.32.
Rolls-Royce and Babcock International led the top flight with gains of 27.5p to 1130.5p and 32p to 1175p respectively, while hotels group Whitbread followed last week’s slump by adding 40p to 2942p.
It was also an improved session for the banking sector after Friday’s US-led volatility, with Barclays up 4.7p to 362.5p and NatWest 7.8p higher at 540.2p.
On the fallers board, Persimmon gave up 23p to 1150.5p and Barratt Redrow eased 6.5p to 378.5p after Rightmove said the usual October bounce in asking prices failed to materialise.
The FTSE 250 index rose 36 points to 21,818.96, led by Ithaca Energy and Harbour Energy after their shares rose 5% and 3% respectively.
B&M European Value Retail slid 17% or 37.6p to 179.5p after the discovery of an accounting error led to its second earnings downgrade in the space of a fortnight.
The discount chain, which has lost 50% of its stock market value this year, said £7 million of overseas freight costs were “not correctly recognised in cost of goods sold”.
It added that finance chief Mike Schmidt, who joined the group in 2022, will step down once a replacement is found.
Plus500 revenues dip after subdued quarter
09:30 , Graeme EvansTrading platform firm Plus500 has revealed weaker revenues over the past three months after trading was impacted by a reduction in financial markets volatility.
Revenues fell by 2% to $182.7 million (£136.1 million) for the quarter to September 30, but quarterly earnings still edged up to $82.7 million (£61.56 million) as margins improved.
The company’s FTSE 250-listed shares rose 6p to 3198p following the update.
Chief executive David Zruia said: “We have strong momentum and look to the future with confidence, well positioned to capitalise on both short-term opportunities in global financial markets, as well as compelling medium-term structural growth drivers.”
Pension funds to launch growth-focused partnership
08:59 , Graeme EvansTwenty of the UK’s biggest pension providers and insurers are set to launch a new investor-led partnership on Tuesday.
The Sterling 20 will be established at the Regional Investment Summit in Birmingham, working with the Government and City of London Corporation.
The initiative will help to boost affordable housing, improve broadband connections in rural areas and provide scale-up finance for growing businesses.
Legal & General has kicked off the investment drive with a £2 billion commitment by 2030, delivering around 10,000 more affordable homes and supporting the creation of 24,000 jobs nationwide.
FTSE 100 higher as banking stocks rally, B&M shares down 16%
08:20 , Graeme EvansThe FTSE 100 index has risen 0.4% or 39.578 points to 9394.14, with Barclays those higher.
The lender followed Friday’s 6% fall with a rise of 2% or 5.5p to 363.3p, while NatWest lifted 6.8p to 539.2p and Lloyds Banking Group advanced 1.2p to 83.6p.
Rolls-Royce added 26p to 1129p and Babcock International lifted 26p to 1169p at the top of the FTSE 100 index.
Marks & Spencer fell 7.5p to 394.5p after RBC analysts removed their Outperform stance on the retailer.
In the FTSE 250, B&M European Value Retail shares slid 16% - down 35.1p to 182p - after an accounting error led to another downgrade to earnings guidance.
Week ahead: Inflation rate seen rising to 4%
07:44 , Graeme EvansThe UK’s nflation rate is expected to increase to its highest level for 21 months when the Office for National Statistics publishes figures on Wednesday.
Economists have predicted that Consumer Prices Index will hit 4%, having risen to 3.8% in July as a result of rising food prices.
The Bank of England previously forecast that inflation would peak at around 4% in September before steadily falling.
The week ahead also includes tomorrow’s public sector borrowing figures and retail sales figures on Friday.
Barclays is due to post a third quarter update on Wednesday, before Lloyds Banking Group and NatWest on the following two days.
House prices miss usual October bounce - Rightmove
07:27 , Graeme EvansThe autumn asking price bounce among home sellers was lower in October than usual, according to the property website Rightmove.
The average price of a property coming to the market for sale increased by 0.3% or £1,165 in October to reach £371,422.
This is below the 10-year average October bounce of 1.1%, as the high number of homes for sale limits sellers’ pricing power, the website added.
October typically sees a seasonal increase in activity and new seller asking prices as the market bounces back from a quieter summer period, but activity has not been strong enough to drive the usual autumn bounce in prices, the report said.
B&M cuts earnings guidance, CFO to step down
07:17 , Graeme EvansB&M European Value Retail today downgraded earnings guidance for the second time in a month.
The retailer said £7 million of overseas freight costs were not correctly recognised in the cost of goods sold, following an operating system update earlier this year.
B&M said: “The underlying system issue has since been resolved but its financial impact is material to our outlook for the 2026 financial year.”
Adjusted earnings are now expected in the range of £470 million and £520 million, compared with the previous estimate of £510 million and £560 million.
It also said that chief financial officer Mike Schmidt has advised the board of his intention to step down from his role. He will remain with the company until a successor is found. He joined the group in October 2022.
On 7 October, B&M downgraded earnings guidance on the back of a 1.1% decline in second quarter like-for-like sales in the UK.
FTSE 100 seen higher, Brent Crude near $60
07:02 , Graeme EvansAsia markets are sharply higher, while the FTSE 100 is set to rise 0.3% at today’s opening bell.
The gains follow Friday’s recovery for US stocks as the Dow Jones Industrial Average, the S&P 500 index and Nasdaq Composite all closed 0.5% higher.
The FTSE 100 index lost 0.8% over the course of last week, including a decline of 0.9% or 81.52 points at 9354.57 on Friday.
The Shanghai Composite is up 0.6% and the Hang Seng index more than 2% stronger, even though China’s GDP annual growth rate slowed to 4.8% in the third quarter.
The figure was slightly better than hoped, while the market performance was helped by hopes that the US and China will reach a deal before President Trump imposes additional 100% tariffs from 1 November.
The Nikkei 225 bounced back from Friday’s heavy losses with a rise of 3%.
Brent Crude is about 0.5% lower at $60.96 a barrel and the gold price slightly lower at $4244 an ounce.
