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Stocks in London were mixed at Tuesday midday while the FTSE 100 was higher, with property developer Segro rising after hailing an improvement in occupier sentiment, and HSBC up after naming David Lindberg as new chief executive officer of its UK business. The FTSE 100 index was up 17.95 points, 0.2%, at 9,421.52. The FTSE 250 edged up 5.33 points to 21,873.81, and the AIM All-Share edged down marginally to 771.03. The Cboe UK 100 was up 0.1% at 941.27, the Cboe UK 250 was down 0.1% at 19,025.52, and the Cboe Small Companies was down 0.3% at 17,502.56. In European equities on Tuesday, the CAC 40 in Paris was up 0.2%, while the DAX 40 in Frankfurt was down 0.2%. European markets started the day on an uncertain note, with fiscal strains dominating headlines. In the UK, a sharp rise in government borrowing overshadowed early optimism, as speculation builds ahead of next month’s autumn budget. Data from the Office for National Statistics showed public sector borrowing, excluding banks, rose to £20.2 billion in September, up £1.6 billion, or 8.6%, from a year earlier - the highest September figure in five years. The figure came in just above the Office for Budget Responsibility’s forecast of £20.1 billion, but slightly below the FXStreet-cited consensus of £20.5 billion. Joshua Mahony, chief market analyst at Rostro, said that the data ‘adds pressure on Chancellor Rachel Reeves ahead of next month’s autumn budget, where she is expected to announce tax hikes and spending cuts totalling at least [between] £20 billion and £30 billion.’ Chancellor Rachel Reeves on Tuesday unveiled plans to cut red tape and streamline regulations for UK businesses, pledging to remove ‘arbitrary rules’ that she said are holding back growth. Speaking at the Regional Investment Summit in Birmingham, Reeves said the reforms would save firms almost £6 billion a year by the next general election. Reeves said the economy is ‘not working as it should’ but vowed to take the ‘necessary steps’ to restore stability. The chancellor outlined plans to reform the mergers process, update drone regulations, and create a cross-economy artificial intelligence ‘sandbox’ to help firms test new technologies under regulatory supervision. Adding to the fiscal gloom, S&P Global downgraded France’s sovereign credit rating to A+ from AA-, citing persistent budgetary strain and slow deficit reduction progress. Sterling was quoted at $1.3371 at midday on Tuesday, lower than $1.3424 at the London equities close on Monday. The euro traded at $1.1613 at midday on Tuesday, lower than $1.1662 late Monday. Against the yen, the dollar was quoted at JP¥151.94, higher versus JP150.52. Geopolitical tensions also kept investors cautious. Hopes for swift progress toward a peace summit between Russia and the US faded after Moscow downplayed expectations of a near-term meeting between their foreign ministers. The talks were intended to prepare a summit between Presidents Vladimir Putin and Donald Trump in Budapest to discuss ending the Ukraine war. Trump said last week that he hoped to meet Putin within two weeks, but on Monday he appeared to temper expectations, saying ‘both sides need time to get ready’ for what he called ‘serious negotiations.’ In New York, after a strong session on Monday, US stocks were called slightly lower. The Dow Jones Industrial Average was seen down 0.1%, the S&P 500 index down 0.1%, and the Nasdaq Composite down 0.2%. The yield on the US 10-year Treasury was quoted at 3.99%, narrowing from 4.00% on Monday. The yield on the US 30-year Treasury stood at 4.57%, narrowing from 4.59%. Back in London, Segro led the FTSE 100, rising 3.0% after reporting a strong third quarter, driven by improving occupier sentiment. The property developer signed £22 million of new headline rent during the quarter, taking the year-to-date total to £53 million. HSBC, among the biggest winners of the index, gained 1.9% after appointing former NatWest executive David Lindberg as the new chief executive officer of its UK business. At the other end of the index, Bunzl fell 2.6% after reporting flat third-quarter revenue and a narrower operating margin amid what it described as ‘challenging market conditions.’ The London-based distribution and services company said revenue rose by 0.6% at constant currency from a year before in the third quarter, as net acquisitions contributed 1.4% growth but fewer trading days in the quarter compared to a year before detracted by 1.1%. Underlying revenue, which is organic revenue adjusted for trading days, was up 0.4%. In the FTSE 250, NCC Group rose 2.1% after saying its ongoing strategic review could result in the sale of the entire company. The cybersecurity firm said it continues to explore a potential sale of its Escode division and is now reviewing options for its Cyber Security business. Regardless of the outcome, it plans to launch a share buyback programme after December 11. Watches of Switzerland climbed 2.5% after UBS raised its price target for the retailer to 415 pence from 400p, maintaining a ’neutral’ rating. Among smaller companies, Oriole Resources jumped 12% after reporting a maiden JORC-compliant mineral resource estimate for the MB01-S zone at its 90%-owned Mbe project in Cameroon. The estimate totals 24.8 million tonnes at a grade of 1.09 grams of gold per tonne, containing 870,000 ounces of gold, exceeding prior expectations. Chesterfield Special Cylinders rose 15% after forecasting higher annual revenue and profit. The company expects full-year revenue of £16.5 million, up from £14.8 million, and adjusted Ebitda of around £800,000, ahead of expectations. Gold was quoted at $4,263.40 an ounce on Tuesday, lower than $4,345.43 on Monday. Brent oil was trading at $61.46 a barrel on Tuesday, higher than $60.69 late Monday. Still to come on Tuesday’s economic calendar, Canada releases its consumer price index for the month of September. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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