Cracks are appearing in the labour market after the unemployment rate today rose to 4.3%.
On the results front, AstraZeneca is among the heavyweight companies in the spotlight.
However, the biggest share price moves were by the smaller stocks DCC and ConvaTec.
Read more on today’s labour market figures
FTSE 100 Live Tuesday
- AstraZeneca upgrades guidance
- Mstro Bank fined £16m
- DCC energy plan fires up shares
Market update: AstraZeneca under pressure despite upgrade, Vodafone lower
10:15 , Graeme EvansThe post-election bounce on Wall Street contrasted with London’s latest poor showing today as Vodafone led another reverse by the FTSE 100 index.
A fall of 64.04 points to 8061.15 left the blue-chip benchmark at a three-month low, with miners including Anglo American among other stocks under pressure.
Across the Atlantic, the hopes of deregulation and tax cuts under a Trump administration last night helped the Dow Jones Industrial Average up by 0.7% while the S&P 500 index closed above 6000 for the first time.
BAE Systems, which has about a third of its 100,000-strong workforce in the United States, has been one of the few London-listed beneficiaries.
The shares are up 9% in the past week, including today’s 9.7p to 1403.2p after an in-line trading update showed order intake of £25 billion year to date
GKN Aerospace owner Melrose Industries also lifted 7.2p to 520,4p but the biggest gains in the FTSE 100 were by two of the top flight’s smallest stocks.
The biggest move was by medical products firm ConvaTec, which jumped 18% or 39.8p to 256.4p after it upgraded revenues and earnings guidance for 2024.
And conglomerate DCC jumped 739p to 5705p, a surge of 15% after it promised surplus capital for shareholders through newly-unveiled break-up plans that will see it focus on energy operations.
Vodafone fell 4% or 3p to 70p, another setback for shareholders after half-year results showed revenues growth of 1.6% and underlying earnings up 3.8%.
Chief executive Margherita Della Valle said the performance was in line with expectations as the mobile phone giant works on the turnaround plan she launched in May 2023.
Hargreaves Lansdown analyst Matt Britzman said: “Vodafone isn’t the most expensive name, but the challenges are real and it’ll need to display continued progress before markets start getting excited again.”
AstraZeneca shares have also been under pressure after the disclosure of investigations by Chinese authorities into current and former employees.
There was no respite for the stock today, despite the pharmaceuticals giant upgrading full-year guidance in third quarter results.
Demand for medicines in oncology, biopharmaceuticals and rare disease means revenues and earnings per share will show high teens percentage growth.
The shares opened marginally higher before retreating to stand 138p cheaper at 9847p.
The FTSE 250 index fell by 162.70 points to 20,560.83, with US-focused corporate merchandise firm 4imprint among the biggest fallers after a trading update revealed slower top-line growth.
The shares gave up some of last week’s momentum by falling 240p to 5200p, even though it reiterated full-year earnings guidance. Other mid-cap stocks under pressure included Burberry, which lost 8% or 61p to 717p.
Drax led the risers, up 6% or 36p to 678p after the biomass generation firm forecast annual earnings near the top end of City hopes.
ConvaTec shares surge after earnings upgrade
08:59 , Graeme EvansThe FTSE 100-listed shares of ConvaTec have jumped 19% after the specialist in wound, ostomy, continence and infusion care upgraded full-year guidance.
It now expects annual sales growth in the region of 7.25%-8% and for an operating margin above 21.5%.
The impact of product launches and recent efficiency efforts mean the company has also forecast earnings progress in the 2025 financial year.
Shares rose 40.8p to their highest level since May at 257.4p.
DCC energy plan fires up FTSE 100 shares
08:44 , Graeme EvansDCC shares have jumped 17% in the FTSE 100 index after the Dublin-based conglomerate announced plans to focus on its energy operations.
The division represents 74% of the group’s operating profit and achieves the highest capital return out of the group's three businesses.
It has begun preparations for the sale of DCC Healthcare and will review its strategic options in relation to DCC Technology.
The energy arm serves 10 million customers annually across commercial, industrial, domestic and transport energy uses.
DCC believes this market position gives it a competitive advantage as it looks to help with the energy transition needs of its customers,
Chief executive Donal Murphy said: “Our strategy will deliver strong profit growth, high returns and a significant reduction in our customers' carbon emissions.”
Shares rose 864p to 5830p as DCC said surplus cash arising from the simplification of the group will be returned to shareholders.
Vodafone shares under pressure, FTSE 100 lower
08:21 , Graeme EvansVodafone shares have fallen 4% to their lowest level since early August, despite the mobile phone giant reiterating annual guidance in half-year results.
The decline of 3.2p to 69.8p came as chief executive Margherita Della Valle reported “good progress” on the company’s turnaround plan.
On the risers board, a robust update by BAE Systems helped its shares lift 17p to 1410.5p. Under-pressure AstraZeneca edged 7p higher to 9992p after upgrading forecasts for the year.
The FTSE 100 index fell 43.94 points to 8081.25 and the FTSE 250 index weakened 0.7% or 145.71 points to 20,577.82.
Shares in corporate merchandise firm 4imprint fell back 8% or 417.4p to 5022.6p, despite issuing unchanged guidance in the face of challenging conditions.
AstraZeneca upgrades guidance, pledges China co-operation
07:41 , Graeme EvansAstraZeneca has upgraded its revenue and earnings guidance for this year.
Chief executive Pascal Soriot said: "Our company has continued on its strong growth trajectory in the first nine months of 2024.
Total revenues and core earnings per share rose 21% and 27% respectively in the third quarter, which Soriot said reflected increasing demand for the company’s medicines across oncology, biopharmaceuticals and rare disease.
The company now expects high teens percentage growth in revenues and earnings per share, compared with mid-teens previously forecast.
Shares have fallen sharply in recent days following the disclosure that Chinese authorities have launched investigations into current and former AstraZeneca employees.
According to Astra, the matters include allegations of medical insurance fraud, illegal drug importation and personal information breaches.
Soriot added: “We take the matters in China very seriously. If requested we will fully cooperate with the authorities. We remain committed to delivering innovative life-changing medicines to patients in China."
Metro Bank fined £16.7m over financial crime failings
07:26 , Graeme EvansMetro Bank has been fined £16.7 million in relation to failures that meant it was unable to adequately monitor for money laundering risks.
The failings identified in today’s penalty by the Financial Conduct Authority (FCA) relate to the period between June 2016 and December 2020.
FCA director Therese Chambers said: “'Metro's failings risked a gap being left in our defence against the criminal misuse of our financial system. Those failings went on for too long.”
The FCA said Metro automated the monitoring of customer transactions for potential financial crime in June 2016. However, its system did not work as intended.
An error in how data was fed into the system meant transactions taking place on the same day an account was opened, and any further transactions until the account record was updated, were not monitored.
Metro said it has engaged and co-operated fully with the FCA’s enquiries and accepts the findings. It has resolved the transaction monitoring system failings and made transaction monitoring enhancements.
Chief executive Daniel Frumkin added: “The conclusion of these enquiries draws a line under this legacy issue, allowing the bank to move forward and fully focus on the future.”
Jobless rate rises to 4.3% in September
07:08 , Graeme EvansThe UK’s unemployment rate has risen to 4.3%, up from 4% the previous month and compared with City forecasts for a figure of 4.1%.
Quarterly average earnings excluding bonuses rose by 4.8% on a year earlier, down slightly on 4.9% seen last time and expectations nearer 4.7%.
Including bonus payments, the quarterly earnings figure of 4.3% reported today by the Office for National Statistics came in above City forecasts.
S&P 500 tops 6000 as Bitcoin hits $88,000, FTSE 100 seen lower
06:59 , Graeme EvansThe post-election advance for US markets continued last night, while Bitcoin surged as much as 10% to above $88,000.
The Dow Jones Industrial Average led the way on Wall Street with a gain of 0.7% as the S&P 500 rose by 5.81 points to finish above the 6000 threshold.
The FTSE 100 index is forecast to open 44 points lower at 8082, having risen 52.80 points in yesterday’s session.
Meanwhile, the pressure on commodity markets has left Brent Crude at $71.67 a barrel.
