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London’s blue chip index ended Tuesday up only marginally, mirrored by the CAC 40 as French markets steadied in the aftermath of Prime Minister Sebastien Lecornu’s resignation. The FTSE 100 index closed up just 4.44 points at 9,483.58. It had earlier traded as high as 9,507.11. The FTSE 250 ended down 96.94 points, 0.4%, at 22,002.80, and the AIM All-Share closed just 0.69 of a point higher, 0.1%, at 796.32. The Cboe UK 100 ended down 0.2% at 946.48, the Cboe UK 250 closed 0.6% lower at 19,227.24, and the Cboe Small Companies fell 0.1% at 17,992.50. In European equities on Tuesday, the CAC 40 in Paris and the DAX 40 in Frankfurt both rose slightly. French financial markets steadied after a volatile day on Monday following the resignation of Prime Minister Sebastien Lecornu. Paul Donovan, chief economist at UBS Global Wealth Management said: ‘Despite obvious parallels, this is not the same as the UK‘s Truss debacle. The French bond market remains orderly. French assets will command a risk premium, as investors wait to see whether a new government or new elections are the outcome.’ Goldman Sachs says events in France have raised its conviction in two features of its forecast. First, the broker continues to expect growth in France to run below trend also sees little progress with reducing the government deficit. Gold traded at $3,985.98 an ounce on Tuesday, up against $3,957.68 on Monday as investors eyed the US government shutdown, with Republicans and Democrats appearing no closer to an agreement. Bets on the Federal Reserve cutting interest rates this month and the political crisis in France are adding to the allure of the safe-haven asset. ‘The rally in gold is part of the ’debasement’ trade,’ said Kathleen Brooks, research director at XTB. ‘This trading theme is driving demand for alternative assets such as gold and crypto, as the dollar faces a long-term decline and fiscal concerns continue to rise around the world,’ she added. Goldman Sachs raises its December 2026 gold price forecast to $4,900 per ounce from $4,300 before, to reflect Western exchange-traded fund inflows and likely central bank buying. ‘We see the risks to our upgraded gold price forecast as still skewed to the upside on net, because private sector diversification into the relatively small gold market may boost ETF holdings above our rates-implied estimate,’ the bank added. The pound was quoted lower at $1.3440 at the time of the London equity market close on Tuesday, compared to $1.3471 on Monday. The euro stood at $1.1672 compared to $1.1706. Against the yen, the dollar was trading at JP¥151.02, higher compared to JP¥150.07. Stocks in New York were lower at the time of the London close. The Dow Jones Industrial Average was down 0.2%, the S&P 500 index was 0.4% lower and the Nasdaq Composite declined 0.7%. The yield on the US 10-year Treasury was quoted at 4.13%, narrowed from 4.16% on Monday. The yield on the US 30-year Treasury stood at 4.73%, trimmed from 4.76%. On the FTSE 100, Rentokil Initial led the risers, up 3.9%, after a double upgrade from Bernstein to ’outperform’ from ’underperform. Analyst Will Kirkness notes ‘signs of inflecting organic revenue growth’ and believes that Rentokil can ‘enjoy structural growth in line with the industry, combined with ongoing consolidation’. Bernstein thinks the organic growth rate can improve to 3% to 4% as the market remains supportive and strategic investments pay-off. Imperial Brands rose 3.4% after announcing a larger-than-expected share buyback alongside in line trading. The Bristol, England-based tobacco products manufacturer which owns the Golden Virginia and Rizla brands said the £1.45 billion share buyback, increased from £1.25 billion in financial 2025, will be completed by October 28, 2026. Simon Hales, analyst at Citi, who called the update ‘reassuring’, said the share buyback is larger than the £1.30 billion to £1.35 billion consensus forecast and should be enough to provide some short-term support for the stock after recent weakness. Shell was also in the green, climbing 1.5%, after its trading update. The London-listed energy major projected stronger gas trading and higher upstream output in the third quarter, boosting hopes of an earnings beat later this month. Shell said earnings from its Integrated Gas division rebounded sharply between July and September, and as a result trading and optimisation results from the segment are expected to be ‘significantly higher’ than in the previous quarter, supported by increased liquefied natural gas volumes. ‘The [third quarter] update is a useful reminder that Shell’s operational performance continues to be strong, with a growing LNG portfolio and ongoing restructuring in key divisions,’ analysts at RBC Capital Markets said. Tesco and J Sainsbury, both down 0.7%, were a weaker feature as sector peer Asda announced a slew of price cuts, renewing fears of a price war. While Mondi fell a further 4.1% following Monday’s profit warning. Holding the FTSE 250 back, a 7.7% drop in B&M European Value Retail after it warned full-year earnings will miss expectations. The Luxembourg-based variety goods store chain in the UK and France said B&M UK like-for-like sales fell 1.1% on year in the second quarter that ended September 27, weaker than its expectations, and below Visible Alpha consensus which forecast a decline of 0.4%. For the full financial year, B&M expects adjusted Ebitda between £510 million to £560 million, which at the mid-point would be down 14% from £620 million the year prior, and is 12% below VA consensus of £606 million. In response, B&M said it is taking ‘decisive actions’ to correct the operational weaknesses identified. Chief Executive Officer Tjeerd Jegen, who joined B&M in June, said the action plan, ’back to B&M basics’, will be focused on returning the UK business to sustainable like-for-like growth. ‘This is our absolute priority. We have already sharpened our price position, and we are moving with pace to refocus our ranges, improve on-shelf availability and bring back excitement to our stores,’ he stated. David Hughes, analyst at Shore Capital, said a ‘reset’ in margin through lower prices was necessary for the business to deliver the much-needed return to like-for-like volume growth. ‘While these investments will put pressure on gross margin, we think such a price reset is necessary to improve the price differential versus competitors and provide a reason to shop at B&M.’ Brent oil traded at $65.28 a barrel on Tuesday, down from $65.43 late Monday. The biggest risers on the FTSE 100 were Rentokil Initial up 15.40 pence at 409.90p, Imperial Brands, up 101.00p at 3,105.00p, Burberry, up 36.50p at 1,238.50p, Beazley, up 25.00p at 925.50p, and British American Tobacco, up 69.00p at 3,854.00p. The biggest fallers on the FTSE 100 were Entain, down 56.80p at 812.00p, Mondi, down 42.40p at 837.20p, JD Sports Fashion, down 2.55p at 102.00p, Spirax Group, down 165.00p at 7,120.00p and Babcock International, down 28.00p at 1,253.00p. Wednesday’s global economic calendar sees the minutes published from September’s Federal Open Market Committee meeting. Wednesday’s UK corporate calendar has a trading statement from student accommodation provider, Unite, and convenience food producer Greencore. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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