Strong trading at B&Q and Screwfix today led to a profit upgrade by the FTSE 100-listed retailer Kingfisher.
The group, whose other operations include Castorama in France, also accelerated its share buyback programme.
Meanwhile, the latest PMI report for the UK economy showed a sharper-than-expected slowdown in private sector output.
FTSE 100 Live Tuesday
- Kingfisher ups full-year guidance
- PMI reading at 4-month low
- Smiths revenue tops hopes
Market update: Home improvement stocks rally, Raspberry Pi down 6%
10:24 , Graeme EvansA profit upgrade by B&Q owner Kingfisher today lifted its FTSE 100-listed shares by 18% and triggered a surge in demand for other home improvement stocks.
The update by Kingfisher, whose other brands include Screwfix and France’s Castorama, boosted hopes that it will return to profit growth in the year to January.
It forecast a surplus at the upper end of its previous guidance between £480-£540 million, which compared with the City consensus of £519 million and last year’s £528 million.
Adjusted profit improved 10.2% to £368 million in the six months to 31 July, with like-for-like sales at B&Q and Screwfix up by 4.4% and 3% respectively. Kingfisher also reported improved sequential trends in France and Poland.
Whilst mindful of mixed consumer sentiment and political uncertainty, the company accelerated its share buyback programme.
The stock jumped 45p to 297.2p, the highest level since May and a year-to-date improvement of 20%.
AJ Bell investment director Russ Mould said warm weather helped drive sales of garden furniture and BBQs, meaning investors will be watching future updates closely for any signs of the outlook deteriorating.
He added: “In that context, the decision to accelerate the company’s share buyback programme and to guide for a full-year outcome at the top end of current guidance is a decent show of confidence.”
The read-across lifted kitchens supplier Howden Joinery by 3% or 28.5p to 867p, while Travis Perkins and Wickes improved 4% and 3% respectively in the FTSE 250.
The second best performance in London’s top flight was by Smiths Group after the industrial conglomerate reported annual results ahead of expectations.
Organic revenues growth of 8.9% compared with twice-raised guidance between 6-8%, while the operating margin lifted by 60 basis points to the top end of its forecast range at 17.4%.
Smiths, which advanced 4% or 94p to 2472p, also reported progress on the separation of Smiths Interconnect and the airport scanners business Smiths Detection.
Other risers in the top flight included easyJet, which cheered 13.1p to 460.4p amid the reassurance of today’s robust update by holidays giant TUI.
The FTSE 100 index rose 0.4% or 33.57 points to 9260.35, aided by pound-dollar weakness in the wake of a weaker-than-expected PMI reading on the UK economy.
The mid-cap FTSE 250 index improved 0.8% or 178.39 points to 21,775.32, with Aston Martin Lagonda up 4% or 3.3p to 82.8p and Wizz Air 35p stronger at 1236p.
Raspberry Pi fell 6% or 24.4p to 377.4p after half-year profits fell in line with expectations by 43% to £6.2 million.
Unit volumes were flat compared to a strong performance year earlier, with the low-cost computing platform expecting a return to growth in the second half.
UK PMI reading weakest since May, price pressures moderate
09:43 , Graeme EvansAn early look at the UK economy in September today revealed a bigger-than-expected slowdown in the pace of growth in private sector output.
The flash reading from the S&P Purchasing Managers' Index scored 51, which compared with August’s 12-month high of 53.5 and City expectations of 53.
The headline index has been above the 50 no change value in each month since May.
S&P said higher levels of service sector activity once again contrasted with cutbacks to manufacturing production.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said: “September’s flash UK PMI survey brought a litany of worrying news including weakening growth, slumping overseas trade, worsening business confidence and further steep job losses.
“The only good news is perhaps that, just as the Bank of England grows increasingly worried about persistently elevated inflation, the PMI indicated that price pressures have moderated in September.”
TUI sees robust demand in face of heatwaves
09:25 , Graeme EvansHoliday giant TUI today reported a 2% drop in summer bookings, reflecting the impact of high temperatures in its source markets and trend towards late bookings.
TUI said its figures showed “resilient demand” against broader market challenges, adding that it has been able to push through a 3% rise in average selling prices.
The group remains on track for recently upgraded financial forecasts, which points to total underlying earnings growth of between 9% and 11% this year.
Number of crypto millionaires up 40% in a year
09:10 , Graeme EvansThe number of crypto millionaires around the world has jumped by 40% on a year ago to almost 250,000, according to a new report.
The biggest and oldest cryptocurrency, Bitcoin, has been the biggest driver with 145,100 millionaire holders, up 70% in a year, with a combined wealth of $3.3 trillion (£2.4 billion).
Bitcoin is currently trading at just over $113,000, close to its all-time high and up 21% this year alone.
The figures were revealed in Crypto Wealth Report 2025 from international residence and citizenship advisory specialists Henley & Partners.
Wall Street records driven by small band of stocks
08:34 , Graeme EvansNvidia and other members of the Magnificent Seven continue to drive Wall Street records, with the S&P 500 index now up 13.8% for the year to date.
Deutsche Bank points out the equal-weighted version of the leading US benchmark is up 7.65%, representing a steady but not spectacular performance so far this year.
The bank said: “The profile of US equity gains is looking very much like 2023 and 2024 again, where the annual gains are being driven by a very narrow group of stocks.”
Nvidia last night rose 4% to a new record after the $4.4 trillion-valued company announced a $100 billion plan to supply OpenAI with data centre chips.
Hargreaves Lansdown analyst Matt Britzman added: “Fewer than one in ten stocks are hitting 12-month highs, underscoring a market increasingly dominated by its largest names.
“This concentration reflects a broader disconnect as equity indices are soaring even as the real economy shows signs of strain, with sticky inflation, a cooling labour market, and uncertainty over the timing of rate cuts.
“For now, optimism around AI-driven growth and record levels of investment is keeping momentum alive, but the balancing act is precarious.”
Kingfisher and Smiths surge on results, FTSE 100 higher
08:15 , Graeme EvansKingfisher shares have jumped 18% - up 44.9p to 297.1p - after the B&Q and Screwfix owner lifted full-year guidance.
The annual results of Smiths Group also helped the industrial conglomerate to improve 4% or 98p to 2476p.
The FTSE 100 index rose 0.2% or 20.59 points to 9247.27.
Burberry shares, which yesterday rejoined the FTSE 100 index, fell 3p to 1118.5p after last night hosting an event at London Fashion Week.
Which? set to make insurance super-complaint
07:57 , Graeme EvansWhich? is to make a super-complaint to the City regulator after highlighting “serious failings” in the home and travel insurance markets.
The consumer champion said it is focusing on these two types of insurance because they have some of the lowest levels of claims acceptance rates, adding that the impact on a consumer when something goes wrong can be significant.
The super-complaint, being made to the Financial Conduct Authority, is about the markets as a whole, not specific firms.
Tax rises will mean food inflation above 5% - BRC
07:31 , Graeme EvansFood inflation will remain above 5% well into next year if the retail industry is hit by further tax rises at the autumn Budget, the British Retail Consortium (BRC) has said.
It is concerned that around 4000 large shops could see their business rates rise if they are included in the Government’s new surtax for properties with a rateable value over £500,000, and that could lead to price rises for consumers.
A survey by the BRC found that people’s biggest concern was “prices rising faster than wages”, with 57% of respondents agreeing – rising to 61% of working people.
Smiths results ahead of guidance, break-up plan ongoing
07:27 , Graeme EvansSmiths Group today reported annual organic revenues growth of 8.9% for the year to 31 July, above its twice-raised guidance between 6-8%.
The industrial conglomerate’s operating profit rose 13.1% to £580 million, having improved its margin by 60 basis points to the top end of its forecast range at 17.4%.
The dividend for the year is 5.1% higher at 46p a share, while the FTSE 100-listed company has completed 80% of its £500 million share buyback programme.
Earlier this year, Smiths announced a break up plan in order to focus on flow and heat management through its remaining John Crane and Flex-Tek operations.
A large chunk of the proceeds from the separation of Smiths Interconnect and the airport scanners business Smiths Detection will be returned to shareholders.
Smiths said the separation processes are progressing, adding that it is looking for 4-6% organic revenue growth and continuing margin expansion in the new financial year.
Chief executive Roland Carter said: “This has been another successful year for the group, building on our strong track record of consistent growth and returns.
“This strong performance reflects the quality of our business and agility managing ongoing macro-economic uncertainties.”
B&Q owner Kingfisher upgrades guidance
07:12 , Graeme EvansB&Q and Screwfix owner Kingfisher today boosted full-year guidance after reporting “strong” results for the first half of the financial year.
Adjusted profit lifted 10.2% to £368 million in the six months to 31 July, with like-for-like sales at B&Q and Screwfix up by 4.4% and 3% respectively.
Kingfisher also reported improved sequential trends in France, where it trades as Castorama, and in Poland.
The group is targeting the upper end of 2025/26 guidance for adjusted profit of between £480-£540 million, as well as free cash flow in the range of £480-£520 million.
Chief executive Thierry Garnier said: "We delivered a strong first half with high quality underlying like-for-like sales growth of 1.9%, driven by increased volumes and transactions.”
He added: “"Our expectations for our markets for the year remain consistent with what we outlined in March, whilst mindful of mixed consumer sentiment and political uncertainty.
“Combined with our first half performance, this gives us the confidence to upgrade our full year profit and free cash flow guidance and to accelerate our share buyback programme.”
US markets posts fresh records, Nvidia 4% higher
07:02 , Graeme EvansAnother record-breaking session on Wall Street was last night fuelled by the tech sector after Nvidia announced a $100 billion investment in OpenAI.
The chip giant’s shares rose 4%, while the S&P 500 index lifted 0.4% and the Nasdaq Composite improved 0.7% to set new all-time highs.
The FTSE 100 index closed up 10.01 points at 9226.68, boosted by gains of 7% for Endeavour Mining and 5% for Fresnillo after gold price surged 2% to a record high.
The precious metal today traded broadly flat at $3747 an ounce.
The Hang Seng index is down by more than 1% but London’s top flight is forecast to open 0.1% higher.
