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London stocks were mixed at midday on Tuesday, as fresh warnings over slowing UK growth and weaker-than-expected flash PMI figures added pressure to sentiment. The FTSE 100 index was up 2.41 points at 9,229.09. The FTSE 250 was up 110.98 points, 0.5%, at 21,707.91, and the AIM All-Share was up 4.80 points, 0.6%, at 782.33. The Cboe UK 100 was marginally higher at 925.01, the Cboe UK 250 was up 0.6% at 19,020.90, and the Cboe Small Companies was up 0.6% at 17,496.57. Higher tax and spending cuts are set to drag on UK growth next year, adding to a hit from US President Donald Trump’s tariff hikes and one of the highest inflation rates among the G7 economies, a new report has warned. The Organisation of Economic Co-operation & Development said Britain’s ‘tighter fiscal stance’, meaning higher taxes and reduced government spending, is expected to weigh on the economy, with growth set to ease sharply from 1.4% this year to 1% in 2026. Economists from the influential organisation also predicted that UK inflation will surge, with Britain experiencing the highest level among the G7 group of advanced economies this year. Inflation in the UK is expected to reach 3.5% in 2025, 0.4 percentage points higher than its previous forecast, and still remaining far above the Bank of England’s target in 2026, at 2.7%, with soaring food prices pushing up the cost of living. This would see the UK suffering the second highest rate of inflation in the G7 next year, behind only the US, according to the report. In European equities on Tuesday, the CAC 40 in Paris advanced 0.6%, while the DAX 40 in Frankfurt gained 0.3%. The pound was quoted slightly up at $1.3503 at midday on Tuesday in London, compared to $1.3501 at the equities close on Monday. The euro stood higher at $1.1793, against $1.1773. Against the yen, the dollar was trading down at JP¥147.74 compared to JP¥147.84. UK private sector output remained in expansion territory in September, S&P Global reported on Tuesday. The flash UK PMI composite output index posted 51.0 points for September, its lowest reading in four months and ‘[easing] markedly’ from a ‘12-month high’ of 53.5 in August. This underperformed against the 52.7 points reading forecast by the FXStreet-cited consensus. The manufacturing PMI flash estimate was a five-month low of 46.2 points, down from 47.0 and missing the consensus forecast, which had expected no change. Tap Global jumped 43% around midday in London. The London-based provider of app-based cryptocurrency payment and settlement services expects to report revenue of around £3.4 million for the year that ended June 30, which would be up 30% from the year before, reflecting ‘continued user growth and product momentum across the platform’. The firm added that its income for the year will be further boosted by around £420,000 from bitcoin recovery. After stripping out one-off expenses associated with Tap Global’s AIM listing in June and non-cash share option expenses, the company also expects to be materially positive in earnings before interest, tax, depreciation and amortisation for the full year. Land Securities rose 2.9%. The London-based commercial property development and investment company said it is seeing strong demand across its retail and London office portfolios, keeping it on track to hit earnings guidance, as it recycles capital away from low-returning assets. It said it remains on course to deliver like-for-like net rental income growth of 3% to 4% and EPRA earnings per share growth of 2% to 4% in the financial year ending March 2026, before the impact of recent disposals amounting to £644 million. In financial 2025, Land Securities grew net rental income by 5% to £552 million, while EPRA earnings per share edged up 0.4% to 50.3 pence. The company aims to deliver compound annual net rental income growth of 4.5% to 7% in its major retail portfolio through to financial 2030, adding around 4 pence to 5 pence to EPS at the low end. At the other end, Raspberry Pi fell 4.7%. The Cambridge, England-based maker of personal-use computers and modules, which debuted on the London stock market in June 2024, said pretax profit fell 43% to $6.2 million for the six months to June 30 from $10.8 million the year before. Revenue declined 5.9% to $135.5 million from $144.0 million, as a result of reduced royalty income and lower related component sales, while research and development expenses rose 38% to $11.7 million from $8.5 million. The FTSE 250 listing said the second half has started well with Ebitda ahead of last year with volumes expected to be higher supported by strengthening demand and a substantial order backlog. Profit expectations for the full year remain unchanged. Gold was quoted up at $3,784.53 an ounce against $3,729.11. The yellow metal hit a record high of $3,791.05 earlier in the day. ‘Gold climbed to another record high on Tuesday, supported by expectations of further Federal Reserve easing and recent weakness in the dollar. Markets are pricing in two additional 25-basis-point cuts by year-end after last week‘s policy move,’ said Exness analyst Wael Makarem. ‘Still, a more cautious tone from Fed officials could temper the enthusiasm. On Monday, several policymakers warned of limited room for aggressive cuts given lingering inflationary pressures, even as others argued that tighter policy risks damaging the labour market.’ Stocks in New York were called mixed. The Dow Jones Industrial Average was called up 0.1%, the S&P 500 index slightly lower, and the Nasdaq Composite broadly flat. The yield on the US 10-year Treasury was quoted at 4.13%, narrowing from 4.15%. The yield on the US 30-year Treasury was quoted at 4.75%, trimmed from 4.77%. Brent oil was quoted up at $67.01 a barrel at midday in London on Tuesday from $66.48 late Monday. Still to come on Tuesday’s economic calendar, US existing home sales and a US composite PMI reading. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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