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Stock prices in London were up at Wednesday midday despite the US government shutdown, after the FTSE 100 and the gold price hit new all-time highs ahead of US private job numbers by ADP. The FTSE 100 index was up 67.37 points, 0.7%, at 9,417.80. The FTSE 250 was up 2.73 points at 22,018.29, and the AIM All-Share was up 3.45 points, 0.4%, at 786.62. Earlier on Wednesday, the blue-chip index hit a new intra-day high of 9,423.24 points. The Cboe UK 100 was up 0.6% at 942.79, the Cboe UK 250 was slightly higher at 19,285.35, and the Cboe Small Companies was marginally lower at 17,654.02. In European equities on Wednesday, the CAC 40 in Paris and the DAX 40 in Frankfurt were up 0.5%. The US government entered a shutdown at midnight, as Congress failed to strike a deal to keep programmes funded. However, the FTSE 100 performed strongly due to a rise in pharmaceutical stocks. AstraZeneca led the index and rose 6.8%, while peers Hikma Pharmaceuticals and GSK rose 4.1% and 2.8% respectively. On Tuesday, the Trump administration announced a deal granting Pfizer a three-year reprieve on planned tariffs as the New York-based pharmaceutical company vowed to voluntarily lower the prices of unspecified drugs for US purchase. Under the deal Pfizer is to charge ‘most favoured nation’ pricing matching the lowest price offered in other wealthy nations to Medicaid, the US health insurance program for low-income Americans. The White House also said it would unveil a website called TrumpRx that would allow consumers to directly purchase some medications from manufacturers at discounted rates. AJ Bell analyst Russ Mould said: ‘It looks like investors are regaining confidence in the pharma sector following recent uncertainty around pricing and tariffs. More clarity on both points is helping to regain investors’ interest.’ In economic data, the downturn in UK manufacturing worsened in September as output, orders and employment all fell at sharper rates, survey results from S&P Global showed. The seasonally adjusted manufacturing purchasing managers’ index dropped to 46.2 points in September from 47.0 in August, marking its lowest level since April and remaining below the neutral 50-point mark for the 12th straight month. The final figure came in line with the flash estimate published last Tuesday. Production contracted for the 11th consecutive month, with declines across consumer, intermediate, and investment goods. New orders fell for a 12th successive month, one of the steepest drops in two years, as firms cited subdued client confidence, uncertainty linked to US tariffs, and high energy and labour costs. Sterling was at $1.3471 at midday on Wednesday, up from $1.3443 at the London equities close on Tuesday. The euro traded at $1.1723, down slightly from $1.1727 late Tuesday. Against the yen, the dollar was lower at JP¥147.13 versus JP¥147.98. Stocks in New York were called lower. The Dow Jones Industrial Average was called down 0.5%, the S&P 500 index 0.6% lower, and the Nasdaq Composite down 0.7%. The yield on the 10-year US Treasury widened to 4.15% on Wednesday from 4.12% on Tuesday. The yield on the 30-year widened to 4.74% from 4.69%. In London, Greggs led the FTSE 250 index and rose 7.5%. The bakery chain maintained guidance, despite challenging market conditions, with improved trading in August and September after the ‘unusually’ warm weather in July. The firm said total sales rose 6.1% for the 13 weeks to September 27, its third quarter, and by 6.7% year-to-date. Company-managed shop like-for-like sales increased 1.5% for the 13 weeks, and 2.2% year-to-date. ‘Don’t be fooled into thinking the king of sausage rolls is sitting upright on its throne, with nothing to worry about. The share price jump is a mixture of relief and a short squeeze, not a celebration of significant progress,’ said AJ Bell analyst Dan Coatsworth. ‘Like-for-likes sales are still pedestrian despite ongoing product innovation that should have drawn in the crowds. There is a nagging feeling that Greggs is growing too fast in the face of fierce headwinds.’ At the other end of the index, Tate & Lyle sank 9.7%. The supplier of food and beverage products said it was accelerating plans to boost top-line growth after warning soft market conditions would result in full-year sales and earnings below expectations. The company expects revenue and earnings before interest, tax, depreciation and amortisation for the financial year to March 2026 to decline by low-single digit percent compared to the prior year at constant currency. In May, the company forecast revenue growth at, or slightly below, the bottom of its medium-term range of 4% to 6%, with Ebitda growth ahead of revenue. In the financial year to March 2025, Tate & Lyle reported pro forma revenue of £2.12 billion and Ebitda of £446 million, including the impact of the CP Kelco, the pectin and gums business business it bought in June 2024 for $1.8 billion. For the financial first half, Tate & Lyle now expects revenue to be 3% to 4% lower with Ebitda now expected to be high-single digit percent lower. On the AIM market, UK Oil & Gas more than tripled. The energy company’s subsidiary UK Energy Storage signed a memorandum of understanding with gas pipeline operator National Gas Transmission. The agreement set out the intent to collaborate on the development and implementation of Project Union, the national hydrogen pipeline system, and its connection to UK Oil & Gas’s planned onshore salt cavern hydrogen storage facilities in East Yorkshire and South Dorset. ‘We regard this MoU as an essential building block towards achieving our mutually shared ambition of creating a joined-up hydrogen economy across the UK, both north and south. We look forward to working with National Gas and to the day that Project Union links seamlessly with [UK Energy Storage’s] planned Yorkshire and Dorset hydrogen storage,’ said UK Energy Storage Chief Executive Stephen Sanderson. Topps Tiles gained 7.9%. The tile retailer said adjusted sales rose 6.8% in the 12 months to September 27 to around £265 million, which is a record year for turnover. Including CTD, total sales in the year were up 18% at £296 million. The firm says like-for-like sales accelerated to 7.7% growth in the second half of the year from 3.0% in the first half to give 5.3% for the year as a whole. The company also expects to deliver a higher adjusted gross margin in the second half than in the first. Adjusted pretax profit for the year is expected to be in the range of market expectations between £8.3 million and £9.2 million. Litigation Capital Management shares plunged 61%. The asset manager focused on dispute financing swung to a pretax loss of A$101.7 million, around £49.9 million, in the 12 months to the end of June from a profit of A$16.1 million a year ago. It swung to a total loss of A$78.5 million from total income of A$47.8 million last year. The company a net unrealised loss on investments of A$206.8 million, swung from a A$25.1 million gain in the prior year. ‘The last 12 months have been the most challenging in LCM’s history as we experienced a series of adverse case outcomes impacting our financial performance,’ said CEO Patrick Moloney. ‘These setbacks, while disappointing, have underscored the inherent risks of our asset class and the lessons we have learned are shaping our path forward.’ Gold was higher at $3,887.80 an ounce at midday on Wednesday from $3,836.50 late Tuesday. The yellow metal hit a record high of $3,895.32 earlier on Wednesday. Brent oil was trading lower at $65.68 a barrel from $65.99. Still to come on Wednesday’s economic calendar is the ADP jobs report in the US, followed by manufacturing PMI readings for the US and Canada. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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