FTSE 100 Live Monday
- Markets braced for key earnings week
- Trainline upgrades guidance
- Computacenter hit by corporate caution
Oil stocks slow FTSE 100 progress, airlines and Trainline accelerate
09:56 , Graeme EvansA 5% slide in the price of Brent Crude today ensured BP and Shell led the fallers board during an otherwise resilient session for the FTSE 100 index.
The benchmark’s decline to about $71.50 a barrel came amid relief that Israel's retaliatory missile strikes on Iran avoided oil and nuclear installations.
BP fell 2% or 8.8p to 396.1p, leaving the energy giant down 16% year-to-date ahead of tomorrow’s third quarter results. Shell also dropped 61.5p to 2489p.
The selling of the two heavyweight stocks limited the progress of the FTSE 100 index, which stood 14.24 points higher at 8263.08.
On the risers board, the improved fuel cost outlook meant easyJet jumped 4% or 18.2p to 524.8p and British Airways owner IAG lifted 3.9p to 215.4p.
Traders were otherwise on the sidelines ahead of this week’s run of blue-chip updates, which includes figures by HSBC, GSK and Next. In the US, about 40% of the S&P 500 index by market cap is due to report.
In today’s corporate updates, Trainline shares jumped 11% or 35p to 372p after the rail ticketing platform upgraded full-year guidance for the second time in as many months.
It now expects ticket sales growth of between 12% and 14%, compared with previous expectations for the top end of a range between 8% and 12%.
Other risers in the FTSE 250 included AO World and Pets at Home as London’s mid-cap benchmark improved 16.22 points to 20,836.13.
On the fallers board, Computacenter shares weakened 30p to 2304p after a soft finish to the third quarter caused the IT firm to downgrade full-year guidance.
Computacenter shares steady despite Q3 setback
09:17 , Graeme EvansComputacenter shares are firm this morning, despite its warning that full-year profits on a constant currency basis will be modestly behind last year.
The company, whose services are used by large corporate and public sector organisations, had previously forecast progress across the financial year.
Analysts point out that much of the downside in today’s third quarter update was already reflected in the share price performance over recent weeks.
The FTSE 250-listed stock today fell 10p to 2324p, having been 2952p in July.
US bank Jefferies cut forecasts by 5%, adding that investors continue to undervalue mid-term prospects based on its new price target of 3400p.
It added: “Computacenter was always facing a tall 2H24 hurdle, and a 3Q trading statement pointing to slightly weaker-than-expected trading suggests that it's a jump too far.”
Big tests ahead as economic and earnings updates loom
08:55 , Graeme EvansThe week ahead for US markets includes a GDP estimate, plus monthly reports on the Federal Reserve’s preferred inflation measure and non-farm payrolls.
The strength of corporate America and the outlook for the mega cap technology sector will also be in the spotlight through Wall Street earnings updates.
Richard Hunter, head of markets at Interactive Investor, said: “US markets are braced for a full-on assault, with the coming week littered with potential banana skins.
“At an economic level, there will be further clues as to whether the recent spike in bond yields has been justified, and whether the Federal Reserve might even be considering pausing its interest rate cutting cycle given a robust backdrop.”
He added: “Nor will there be any respite on the corporate front, as the quarterly earnings season hits top gear.
“There are updates expected from the likes of Ford, McDonald’s, PayPal, Caterpillar, Exxon Mobil and Chevron, where the recent oil price decline will have had an impact.”
Retail and airline stocks make FTSE 100 progress, Trainline up 11%
08:34The improved fuel cost outlook means easyjet and IAG are top of the FTSE 100 index, up 4% or 20p to 526.6p and 2% or 5.2p to 216.7p respectively.
Retail stocks are also in favour after Marks & Spencer rose 5p to 383.3p and JD Sports Fashion lifted 2.1p to 134.1p.
Brent Crude’s reverse of 4.5% to about $72.50 a barrel has left Shell shares 50.8p lower at 2500.5p and BP down by 2% or 7.3p to 397.6p.
Other fallers include GSK, which has retreated 11.5p to 1437p ahead of Wednesday’s third quarter trading update.
In the FTSE 250 index, Trainline shares jumped 11% or 37p to 374p after the ticketing firm’s upgrade to full-year guidance.
Computacenter shares rose 6p to 2340p, despite the IT firm’s softer finish to the third quarter.
The FTSE 100 index stands 3.23 points lower at 8245.61, while the FTSE 250 index is 44.82 points higher at 20,864.73.
BP shares down 2% in flat FTSE 100 start, Wall Street seen higher
08:06 , Graeme EvansThe FTSE 100 index has opened flat while Wall Street is set for a stronger session amid relief that Israel's retaliatory missile strike on Iran only hit military targets.
IG Index said: “The hope is that the latest tit-for-tat has run its course and that the situation in the Middle East might now de-escalate with the hope for a Gaza ceasefire agreement resurfacing.
“The oil price took a 4% hit over the weekend amid easing fears of supply disruptions. Meanwhile the Yen continues to weaken as the ruling coalition loses its parliamentary majority.”
BP and Shell shares have opened 2% lower on the back of Brent Crude’s 4% decline to below $73 a barrel.
Investors brace for busy week of blue-chip results
07:52 , Graeme EvansA busy week of corporate results is set to include figures from more than 40% of the S&P 500 index by value, including five Magnificent Seven stocks.
Google business Alphabet reports after Tuesday’s closing bell, followed by Microsoft and Meta Platforms on Wednesday and Apple and Amazon on Thursday.
In the UK, oil giants BP and Shell are in the spotlight on Tuesday and Thursday respectively. HSBC posts an update tomorrow, with GSK and Next among those reporting figures on Wednesday.
Computacenter performance hit by slow September
07:43 , Graeme EvansComputacenter today lowered full-year expectations, reflecting “a softer end to third quarter than anticipated and a backdrop of prudent corporate spending”.
The FTSE 250-listed technology provider now expects adjusted profit before tax on a constant currency basis for the full year to be modestly behind last year.
It said: “After a strong start to the quarter, Technology Sourcing volumes in September were below our expectations reflecting a more cautious corporate spending environment and slower completion of committed product orders in North America.
“Our overall performance in Germany met our expectations with the UK ahead of last year but below our expectations.”
The company added that its product order backlog remains healthy, having grown since the end of the first half. It also continues to expect to deliver a second half that is comfortably ahead of last year.
Trainline accelerates with boost to full-year guidance
07:17 , Graeme EvansRail ticketing firm Trainline today upgraded full-year guidance for the second time in two months.
It now expects ticket sales growth of between 12% and 14%, compared with previous expectations for the top end of a range between 8% and 12%.
Revenues growth for the financial year will now be in the region of 11%-13%, leading to adjusted earnings of about 2.6% of net ticket sales.
The FTSE 250-listed company said: “Trainline has delivered strong growth in H1 FY2025 and is increasingly benefiting from operating leverage as it scales.”
It is due to publish half-year results on 7 November, having previously upgraded guidance in September.
Oil price lower, FTSE 100 set for steady start after mixed US session
07:03 , Graeme EvansBrent Crude futures have fallen sharply after Israel avoided oil and nuclear facilities during strikes on Iran over the weekend.
The easing of supply disruption fears pushed the oil price down more than 4% to $72.97 a barrel this morning.
The FTSE 100 index, meanwhile, is forecast to open 12 points higher at 8261.
On Friday, the Dow Jones Industrial Average finished a disappointing week with a decline of 0.6%. The tech-focused Nasdaq Composite improved 0.6%.
