FTSE 100 Live Wednesday
- Prudential plots dividend growth
- Energy bills set to rise
- Rio Tinto overhauls structure
Market update: FTSE 100 steady ahead of Nvidia results, JD Sports rallies
10:09 , Graeme EvansA North American sales beat today fired up JD Sports Fashion shares during a lacklustre session for the FTSE 100 index ahead of tonight’s Nvidia results.
Vodafone, Glencore and National Grid helped the top flight claw back 16.86 points of Tuesday’s 0.6% reverse to stand at 9282.66, although it had been 9301.
London’s cautious performance reflected the potential impact of chip giant Nvidia’s quarterly results after tonight’s Wall Street’s closing bell.
UBS Global Wealth Management said: “Investors are focused on updates around the next-generation Blackwell chip, and whether Nvidia can once again surpass already-high expectations for revenue and guidance.
“The company’s comments on the outlook for renewed China AI sales will also be key, offering a fresh perspective on the evolving US-China chip landscape and what may lie ahead for the industry.”
Nvidia heads into the release with a valuation of $4.4 trillion, having almost doubled in price since the setback of President Trump’s tariffs announcement in April.
The Nasdaq is up by 40% over the same period, although momentum in the AI trade has slowed in recent weeks.
The indirect impact of tariffs continues to be a source of uncertainty for JD Sports Fashion, which today reiterated full-year guidance in its second quarter update.
The big plus came from North America, where demand for newer footwear lines and stronger trading in apparel limited the decline in like-for-like sales to 2.3%.
This was much better than the consensus forecast of 5.3%, helping shares to continue their recent recovery with an advance of 3% or 2.7p to 96.8p.
Like-for-like sales in the UK fell by 6.1%, reflecting tough comparatives with Euro 2024 and the impact of continued consumer caution.
Chief executive Régis Schultz said: "Across our regions and fascias, in general we see a resilient consumer, albeit very selective on their purchases. We therefore remain cautious on the trading environment going into the second half.”
Elsewhere in the FTSE 100, Prudential shares fell back despite the Asia-focused insurer’s 12% rise in half-year new business profit and plans for improved shareholder returns over the next two years.
Chief executive Anil Wadhwani, said: "We are pleased with our strong performance in the first half of 2025, delivering double-digit growth across our key metrics in line with the guidance we gave earlier in the year.”
The shares slipped 7.2p to 967.4p, having rallied by about 50% this year.
Hochschild Mining was the worst performing stock in a broadly flat FTSE 250.
The gold miner slumped 15% or 49p to 259.4p after downgrading full-year production guidance alongside half-year results.
New Rio Tinto boss unveils restructuring plan
09:24 , Graeme EvansThe new boss of Rio Tinto has launched a major restructure of the mining firm’s operations and leadership team.
The anglo-Australian company said it intends to review the future of two of its smaller divisions – borates, which supplies the detergent industry, and its iron and titanium business.
The reorganisation will see the business into three core units: iron ore; aluminium and lithium; and copper.
The shake-up comes days after the appointment of Simon Trott as its chief executive, following the surprise departure of previous boss Jakob Stausholm.
FTSE 100 higher as JD Sports recovery continues, Hochschild down 11%
08:39 , Graeme EvansThe shares of JD Sports Fashion are up 4.5p to 98.5p after today’s second quarter update helped the retailer maintain its recent stock market recovery.
Tough comparators meant JD reported a 3% decline in like-for-like sales for the three months. However, investors cheered an improved sales trend in North America.
Prudential rose 8.6p to 983.2p after the insurer posted a 12% rise in half-year new business profit and set out plans for improved shareholder returns over the next two years.
The FTSE 100 index weakened after a strong start to stand 14.66 points higher at 9280.46.
Hochschild Mining was the worst performing stock in the FTSE 250, falling 11% or 34.6p to 271.8p after downgrading its production guidance alongside half-year results.
Thames Water agrees payment plan for fines
08:23 , Graeme EvansThames Water has until the end of September to pay £24.5 million of its record £122.7 million in fines, Ofwat announced today.
The industry watchdog, which handed Thames Water the penalties in May for failures over sewage treatment and paying out dividends, said a fifth of the fines would be due in the initial instalment.
The remaining 80% is dependent on the financial security and future of the debt-laden water supplier as it teeters on the brink of a possible temporary nationalisation.
Prudential unveils dividend plan, reports strong half year
07:51 , Graeme EvansPrudential, the Asia-focused insurer and asset manager, is to hike its dividend by 13% after reporting a 12% rise in half-year new business profit to $1.26 billion.
Chief executive Anil Wadhwani, said: "We are pleased with our strong performance in the first half of 2025, delivering double-digit growth across our key metrics in line with the guidance we gave earlier in the year.”
Prudential announced it expects to have returned more than $5 billion to shareholders over the 2024-27 period.
This includes guidance of more than 10% growth in the dividend for each of 2025-27 and share buybacks of $500 million in 2026 and $600 million in 2027.
The shares are broadly unchanged at 972p, consolidating gains of 50% this year.
Richard Hunter, head of markets at Interactive Investor, said: “The outlook comments are upbeat and reiterate expectations for double digit growth in new business profit for this year.
“The highlight, however, is the group’s assertion that it has reached an inflection point in its growth of free surplus capital generation, which in turn will result in higher shareholder returns.”
Energy bills to rise by more than expected
07:18 , Graeme EvansHousehold energy bills will rise by 2% in October after Ofgem announced its latest price cap.
For an average household paying by direct debit for gas and electricity, the overall bill will be £1755 per year.
This equates to an increase of around £2.93 a month, leaving a home on a default tariff paying £102 for what currently costs £100 per month.
Ofgem changes the price cap for households every three months, largely based on the cost of energy on wholesale markets.
The price cap was introduced by the government in January 2019 and sets a maximum price that energy suppliers can charge consumers in England, Scotland and Wales for each kilowatt hour of energy they use.
Energy minister Michael Shanks said: “We know that any price rise is a concern for families.
“Wholesale gas prices remain 75% above their levels before Russia invaded Ukraine. That is the fossil fuel penalty being paid by families, businesses and our economy.”
JD Sports on track for profit target, unveils £100m buyback
07:13 , Graeme EvansJD Sports Fashion today reiterated full-year profit expectations after reporting an improved sales trend for its North American business.
In the UK, like-for-like sales fell 6.1% as the performance for the quarter to 2 August was impacted by tough comparatives from Euro 2024.
Chief executive Régis Schultz said: "Across our regions and fascias, in general we see a resilient consumer, albeit very selective on their purchases. We therefore remain cautious on the trading environment going into the second half.”
The group announced a new £100 million share buyback programme, which it said reflected confidence in medium-term industry growth and its market share gains.
FTSE 100 set for rebound, Wall Street stocks rally
07:00 , Graeme EvansThe FTSE 100 index is set for a return to form, having ended a five-day winning streak in yesterday’s session.
London’s top flight closed down 55.60 points or 0.6% at 9265.80 after a City firm’s downgrade of leading retail stocks impacted the mood.
Futures trading points to a recovery of about 0.4% at today’s opening bell, a performance boosted by a strong finish to the session on Wall Street.
The Dow Jones Industrial Average rose 0.3%, while the S&P 500 index and Nasdaq Composite both lifted by 0.4%.
