FTSE 100 weighed down by housebuilders; Bitcoin near $95,000; Ford sheds UK jobs

FTSE 100 down 10 points

Inflation climbs to 2.3%

Ford to axe hundreds of UK jobs

4.15pm: It’s the jitters

The recovery in UK stocks seen yesterday afternoon’s recovery “has been waylaid by news that Ukraine has now used British missiles against Russian targets, while tech stocks have been further hit by some pre-Nvidia earnings nerves”, says Chris Beauchamp, chief market analyst at IG.

“Now that the initial post-election euphoria has faded, it is clear that markets are struggling for a catalyst to provoke a new rally.”

He says US markets in particular have done well in recent months, “but another period of consolidation seems likely”.

4.02pm: FTSE 100 struggles for direction late on

London’s blue chips headed into late trading on the back foot, with the FTSE 100 down four points at 8,094.

Housebuilders continued to drag on the index, while Admiral Group PLC, B&M European Value Retail SA (LSE:BME), JD Sports Fashion PLC (LSE:JD.) and Entain PLC (LSE:ENT) also sat among the day’s fallers.

Sage Group PLC continued to comfortably lead the risers in the meantime, having surged 18% after unveiling a £400 million buyback and better profits in results earlier on.

Inflation figures for October had exceeded expectations in the morning, coming in at 2.3%, against forecasts for 2.2%.

“Hotter-than-expected inflation statistics dampened expectations for swift interest rate drops and overshadowed optimism surrounding software company Sage’s positive quarterly profit, which caused the UK’s FTSE indices to remain muted on Wednesday,” Tickmill Group partner Patrick Munnelly commented.

3.46pm: Bitcoin rally brings $95,000 within reach

Having surpassed the $94,000 for the first time earlier on Wednesday, Bitcoin continued to surge into the afternoon, moving ever closer to the $95,000 mark.

Bitcoin was up 2.6% at $94,700 come the afternoon and had climbed as high as $94,839 for its latest record earlier on.

3.40pm: Housebuilders drop as rate cuts hopes fall, cost pressures loom

Housebuilders continued to drag on the FTSE 100 into Wednesday afternoon as inflation figures earlier in the day added to cost concerns and threatened higher interest rates for longer.

Persimmon PLC (LSE:PSN), Barratt Redrow PLC (LSE:BTRW) and Taylor Wimpey PLC (LSE:TW.) all dropped throughout the day after ONS figures showed inflation at 2.3% in October, against expectations for 2.2%.

While hampering hopes for rate cut expectations ahead, which would see mortgages remain higher for longer, AJ Bell analyst Danni Hewson noted increasing input prices for builders also remained a threat.

“With a number of housebuilders already warning that they’re seeing an increase in build costs, the fact that producer input prices rose 0.1% on a monthly basis does suggest that pressure on goods prices might well re-emerge over the coming months,” Hewson said.

FTSE 250-listed housebuilder Crest Nicholson PLC (LSE:CRST) on Thursday separately issued a profit warning, noting it would look to build fewer low-margin, or affordable, homes.

This coincided with comments from the Minister of State for Housing and Planning, Matthew Pennycook, that government pledges to build 1.5 million homes would be “more difficult than expected”.

“We’re in a trough, we’ve got to pull ourselves out of that trough,” he said on Wednesday, “that will take time”.

Vistry Group PLC (LSE:VTY) led fallers on the blue-chip index in the meantime, dropping 7.8% having signalled chief operating officer Earl Sibley would depart the business.

Vestry has also recently issued several profit warnings on the back of struggles with cost overruns.

2.48am: Wall Street opens lower as Nvidia earnings loom

Wall Street got off to a cautious start on Wednesday as attention turned firmly to Nvidia Corp’s third-quarter trading update later in the day.

The Nasdaq dipped 0.3% after the opening bell, while the S&P 500 fell 0.2% and the Dow Jones sat just below the mark.

Nvidia dropped by 1.3% in the meantime as a rally over the first half of the week appeared to stall as the chip-making giant’s post-market earnings drew ever closer.

“It is rare that a single stock dominates the global financial space,” XTB analyst Kathleen Brooks commented.

“However, tonight’s earnings report from Nvidia seems like a pivotal moment for global financial markets.

“A stunning earnings report could reenergize the AI trade and the entire US stock market rally, however, a disappointing report could trigger risk-off sentiment.”

Aside from Nvidia, Wednesday also brought earnings from Target Corp (NYSE:TGT), which fell by a fifth after unveiling lower third-quarter profit and warning of a soft holiday period, while Palo Alto Networks Inc (NYSE:PANW, ETR:5AP) and Snowflake Inc were also in line to report.

2.27pm: Ford to shed 800 roles in UK under sweeping European cuts

Ford Motor Company (NYSE:F) has said 800 jobs in the UK will be cut under a plan to axe 4,000 roles across Europe.

Ford attributed the cuts to weak demand for electric vehicles and mounting competition with its distribution site in Daventry and Dunton research centre among six sites which could be hit.

Manufacturing facilities in Dagenham and Halewood and Ford’s logistics base in Southampton are not set to be affected.

The company will aim to make the majority of the cuts through voluntary redundancy, Ford of Britain and Ireland managing director Lisa Brankin said.

“The automotive industry is going through a period of massive disruption at the moment,” Brankin added, citing “unprecedented competition, regulation and lots of economic headwinds”… Read more

1.55pm: Gilt yields jump on higher inflation

Rates on government bonds jumped on Wednesday in the wake of ONS figures showing inflation climbed more than expected in October.

Yields on UK 10-year gilts climbed as high as 4.50% by the afternoon, having sat at 4.44% in the morning.

Figures earlier in the day showed inflation ticked up by 2.3% last month, overshooting expectations for a 2.2% increase.

This in turn prompted expectations for rate cuts ahead to be dashed.

“For investors, gilt yields have adjusted upwards to reflect a potentially slower approach by the Bank of England in cutting interest rates,” Evelyn Partners chief investment strategist Daniel Casali commented.

“Other factors such as increased issuance post the Budget have also put upward pressure on gilt yields.”

The pound gave up an initial gain following the inflation figures in the meantime, falling by 0.12% to $1.2667 come the afternoon, after having surged by 0.25% earlier.

1.35pm: Bitcoin tops $94,000 for first time

Bitcoin continued an impressive rally through Wednesday to top the $94,000 mark for the first time.

The world’s largest cryptocurrency surged as high as $94,418 in the afternoon for a 2.3% gain for the day.

Bitcoin has been buoyed by speculation incoming president Donald Trump will take a favourable stance on cryptocurrencies.

“Trump is yet to announce his choice for Treasury secretary, but the announcement could come as early as Wednesday,” Tickmill Group partner Patrick Munnelly noted.

1.20pm: Rate cut hopes dashed on inflation overshoot

Expectations for interest rate cuts ahead by the Bank of England have been dialled back after figures on Wednesday showed inflation accelerated faster than expected last month.

Chances of a December cut, following this month’s 25 basis point reduction, were effectively wiped after ONS data showed prices climbed by 2.3% in October, against the 2.2% expected.

Markets anticipated the probability of another reduction over the remainder of the year at just 14% following the figures.

Anticipations for reductions through 2025 were also scaled back, with 60 basis points worth of cuts, from 5.00% currently, now expected, against 65 previously.

“Disappointing UK inflation numbers which will make it difficult for the Bank of England to justify additional rate cuts anytime soon,” Trade Nation analyst David Morrison said.

12.59pm: Nasdaq higher in pre-market as Nvidia earnings approach

US tech stocks are expected to rise when trading commences this morning.

At the time of writing, pre-market Nasdaq 100 trades have the index opening 0.2% higher at 5,928.

All eyes will be on how Nvidia Corp performs ahead of its third-quarter earnings call after the closing bell today.

The chipmaking giant’s share price is approaching all-time highs; a sufficiently large revenue beat could be the catalyst it needs to tip over.

Futures contracts on the Dow Jones Industrial Average have the index opening 0.3% higher at 43,402, while the broader S&P 500 is tipped to open 0.2% higher at 5,928.

Palo Alto Networks Inc (NYSE:PANW, ETR:5AP) and Snowflake Inc also have trading updates on the calendar.

Back in London, the FTSE 100 is currently trading 12 points higher at 8,111.

12.47pm: Airfares on the rise

Rising airfares were a notable contributor to surging inflation in October.

According to ONS data, October typically sees a drop in flight prices, but this year recorded a 6.3% monthly increase, the highest for the month since data collection began in 2001.

The surge was largely attributed to European airfares.

Despite the rise in air travel costs, the transport sector’s annual inflation rate remained negative at -1.9%, reflecting the continued downward pressure from falling motor fuel prices.

Petrol and diesel prices saw substantial declines of 2.8 and 2.7 pence per litre, respectively, from the previous month.

British Airways’ parent company International Consolidated Airlines Group SA (LSE:IAG) is is 1.6% in afternoon trades.

12.14pm: Housebuilders drag index

The FTSE 100 has dipped into the red after spending the morning trending above yesterday’s closing price.

As of 12.10pm, the index was trading eight points lower at 8,091.

Large-cap housebuilders are down across the board, with Vistry Group PLC (LSE:VTY) shedding 6.6%, making it the worst FTSE 100 performer.

Vistry is now at a 12-month low after announcing that its chief operating officer Earl Sibley will get his P45 at the end of the year, ending nearly a decade with the group.

His departure follows a profit warning earlier in the year due to cost overruns.

Persimmon PLC (LSE:PSN) is down 3%, Barratt Redrow PLC (LSE:BTRW) 2.7% and Taylor Wimpey PLC (LSE:TW.) 2.3%.

11.47am: Nvidia preview: Banking on Blackwell for four trillion

Nvidia Corp shares are trading near all-time highs in advance of the chipmaking giant’s third-quarter earnings statement.

The highly anticipated report is expected to show considerable year-on-year revenue gains, with Nvidia’s internal guidance estimating $32.5 billion worth of sales.

This is in the ballpark of an 80% year-on-year increase.

But the market will be paying closer attention to whether Nvidia can deliver one of its patented multi-billion-dollar revenue beats that have come to define the artificial intelligence computing giant’s quarterlies.

Key to Nvidia’s performance will be the nascent rollout of its new flagship ‘Blackwell’ AI chip.

The super-powerful processor, named after African American mathematics trailblazer David Blackwell, represents the new generation of AI hardware, with tech titans Meta, Amazon and Microsoft already placing their orders.

If Nvidia is able to impress the Street with its results, it will only take an 11% share price rally to make Nvidia the world’s first-ever $4 trillion company.

Results are due after US markets close on Wednesday.

11.14am: British Land poses substantial upside potential, suggests UBS

UBS reaffirmed its buy rating on British Land Company PLC (LSE:BLND) with a 515p price target following the real estate investment trust’s resilient first-half earnings.

The price target implies a 36% upside to British Land’s current share price of 379.4p.

British Land’s retail portfolio was its saving grace in the first half, with asset values rising by 5.1%.

This managed to offset persistent challenges in the office sector, where occupancy dropped in key areas including the City of London and the West End.

Retail and urban logistics assets, however, showed robust demand, with occupancy rising to 97.3%.

British Land’s shares trade at a significant discount of 31% to net asset value, UBS noted.

Shares are currently down 1.5%.

10.26am: Trump trade sends Bitcoin close to $94,000

Bitcoin came close to surpassing $94,000 for the first time ever in late-Tuesday exchanges.

The world’s largest cryptocurrency peaked at a new all-time high of $93,905 before a bout of profit taking sent it back to a flat $93,000 at the time of writing.

Bitcoin has been remarkably well bid since president-elect Donald Trump’s overwhelming victory over Kamala Harris in the US presidential elections.

Trump has pledged to promote pro-crypto policies and create a bitcoin reserve.

The BTC/USD pair is now up more than 120% year to date.

9.45am: Rent prices soar again

The UK saw significant growth in rental prices alongside a more moderate increase in house prices, per the latest data from the Office of National Statistics.

In the 12 months to October, UK private rents increased by 8.7%, with the average monthly rent in Great Britain reaching £1,307.

London led the regional increases with a 10.4% rise, while the lowest growth rate was in Yorkshire and the Humber at 5.9%.

UK house prices, meanwhile, saw an annual increase of 2.9% in the 12 months to September 2024, reaching an average of £292,000.

England recorded a 2.5% rise to £309,000, while Wales saw a smaller increase of 0.4% to £217,000. Scotland experienced a 5.7% increase, pushing prices to £198,000, and Northern Ireland house prices rose by 6.2% to £191,000.

9.34am: Housebuilder Vistry flops to 12-month low

Housebuilder Vistry Group PLC (LSE:VTY) flopped to a 12-month low after a board rejig spooked investors in the FTSE 100-listed group.

Vistry announced that its chief operating officer Earl Sibley will get his P45 at the end of the year, after almost a decade with the business.

His departure follows a profit warning earlier in the year due to cost overruns.

“Earl has been an integral part of our operational and executive team and his leadership and contribution have been significant in helping to establish Vistry as a leading housebuilding and partnerships business,” said executive chair Greg Fitzgerald.

Shares are currently down 3.9% from yesterday’s close and nearly 30% year to date.

9.09am: The morning so far

Inflation was the point of focus this morning after the consumer price index (CPI) for October came in at 2.3%, marking a sharp shift upwards from September’s 1.7% print.

This was mainly thanks to an increase in the Ofgem energy price cap, resulting in electricity and gas prices going up.

Monica George Michail, associate economist at the National Institute of Economic and Social Research, stated: “While we think the Bank of England will continue to cut rates in 2025, the pace of rate cuts is expected to be slower than previously anticipated, and rates may stay elevated for longer.

On the company news front, Sage Group plc shares rocketed up 17% following its full-year results.

The accounting software group reported improving profit margins and a £400 million share buyback, with chief executive Steve Hare stating: “Sage has delivered another successful year, achieving strong, broad-based revenue growth together with significantly higher profits and cash flows.

“We also invested further in our products and continued to execute well against our strategic priorities.”

FTSE 100-listed water firm Severn Trent PLC (LSE:SVT) saw a huge swing in interim profits while warning about missing certain environmental targets.

The group said it is expected to fail the compliance risk index (CRI), which measures water quality, this year. Shares shot up 4.2%.

British Land Company PLC (LSE:BLND) fell around 3% after reporting a stable overall portfolio valuation in the first half of 2024, supported by strong performance in retail parks, which offset declines in other segments.

The FTSE 100 is currently trading 16 points higher at 8,115.

8.56am: Brace for higher inflation in 2023, warns Deutsche Bank

Inflation is expected to continue pushing higher in 2025, a Deutsche Bank analyst has warned in the wake of today’s 2.3% October CPI print.

“Today’s data won’t be as encouraging for the Bank of England, who have talked up a gradual approach in dialling down restrictive policy,” said Sanjay Raja, chief UK economist at Deutsche Bank Research.

“In fact, today’s data will likely reinforce this message – allowing the MPC to take a more gradual and cautious path in cutting interest rates.

“For now, upward pressure in price momentum will rise. Administrative tax changes will push prices up for things like alcohol, tobacco, VED, air passenger duty – to name a few.”

Raja added that the hike to employer National Insurance Contributions implemented in Labour chancellor Rachel Reeves’ Budget “will almost certainly push inflation higher as retail, hospitality and leisure firms grapple with a double whammy or higher minimum wage costs and payroll tax”.

“This alone, we think, will push inflation higher by a few tenths. As a result, we expect inflation in 2025 to track higher than this year, but still return to the BoE’s target in two years’ time.”

8.42am: Sage Group soars

Sage Group plc shares have pumped 17% to 1,275p, making it easily the top FTSE 100 riser today, after the accounting software group reported improving profit margins and a £400 million share buyback.

Underlying profit (EBITDA) grew 16% to £622 million, with margin increasing by 160 basis points to 26.6%, which was ahead of forecasts.

Chief executive Steve Hare said: “Sage has delivered another successful year, achieving strong, broad-based revenue growth together with significantly higher profits and cash flows. We also invested further in our products and continued to execute well against our strategic priorities.”

The buyback reflected “Sage’s strong cash generation, robust financial position, and the board’s confidence in Sage’s future prospects”, the company stated.

8.29am: Blue chips gain

The FTSE 100 opened 16 points higher at 8,115 this morning, despite trending in the red in the pre market.

Sage Group skyrocketed more than 16% after the opening bell following publication of its annual results and a new share buyback programme.

Severn Trent PLC (LSE:SVT) is the second-highest riser at 2.4% following its interim results.

British Land plc was the second-biggest faller at 2% after reporting that its portfolio valuation barely budged in the first half.

Vistry Group PLC (LSE:VTY) fell around 2.8%.

8.05am: Severn Trent profits nearly triple

FTSE 100-listed water firm Severn Trent PLC (LSE:SVT) saw a huge swing in interim profits despite acknowledging that it will miss certain water-safety performance metrics this financial year.

The group reported a near tripling of profit after tax to £141.4 million for the six months ending 30 September, up from £51.60 million a year earlier.

Severn Trent espoused its environmental credentials by way of securing a four-star Environmental Performance Assessment (EPA) status from the Environment Agency for the fifth consecutive year.

However, the group also admitted that it is expected to fail the compliance risk index (CRI) this year.

Management stated: “Whilst our performance is green on the vast majority of water ODIs (outcome delivery incentives), one exception is CRI, which we’re expecting to be in penalty this year.

“This is mainly caused by our Strensham site, where we expect the introduction of our biggest ever ultraviolet disinfection scheme to deliver significant improvement.”

Severn Trent increased the interim dividend by 4.2% to 48.68p per share.

The group had a net debt position of £7.7 billion and a pension deficit of £185 million at the end of the period.

7.30am: UK inflation climbs to 2.3% in October – report

The UK’s Consumer Prices Index (CPI) increased 2.3% annually in October, surpassing the forecasted 2.2% and marking a significant rise from September’s 1.7%.

The acceleration was primarily driven by an increase in the Ofgem energy price cap, resulting in electricity prices rising by 7.7% and gas prices by 11.7%.

Recreation and culture prices, including live music and theatre tickets, experienced declines, providing a partial offset to the upward trend.

Sticky inflation is gearing up to be a major pressure point for the Labour government.

Chancellor Rachel Reeves’ tax-heavy fiscal policy, coupled with the prospect of tariffs being imposed by US president-elect Donald Trump, both threaten to push consumer prices up.

“This outlook reflects forecasted inflationary pressures stemming from the recently announced budget, in addition to heightened global uncertainty, particularly surrounding the Trump presidency”.

7.13am: Inflation accelerates

The FTSE 100 is expected to open slightly lower this Wednesday, with pre-market trades hovering between 10-20 points of losses.

It will add to the 10-plus points of losses in yesterday’s mixed bag of a session, when the blue-chip index spent the majority of the day in the red before creeping higher in the closing hours.

Traders will be weighing up the impact of today’s inflation print, which came in slightly higher than expected at 2.3% against a market forecast of 2.2%.

Higher energy costs were the main culprit.

Office of National Statistics’ chief economist Grant Fitzner said: “Inflation rose this month as the increase in the energy price cap meant higher costs for gas and electricity compared with a fall at the same time last year.

“These were partially offset by falls in recreation and culture, including live music and theatre ticket prices.

“The cost of raw materials for businesses continued to fall, once again driven by lower crude oil prices.”

5am: The day ahead

Inflation, Mitchells & Butlers and Severn Trent will be in focus this side of the Atlantic before Nvidia’s latest earnings later in the day.

Nvidia’s update once again will be in focus as expectations for another earnings beat loom… Read more

Cost pressures as a result of the Budget will again be in view when Mitchells & Butlers updates… Read more

Severn Trent’s update comes after analysts said it should benefit from draft water incentive plans… Read more

Announcements due:

Interims: James Cropper plc, Molten Ventures PLC, HICL Infrastructure PLC, Rotork PLC, Softcat PLC, Severn Trent PLC (LSE:SVT), Twentyfour Income Fund Ltd

Finals: Mitchells & Butlers PLC, Nanoco Group PLC, Sage Group PLC, Tracsis PLC

US earnings: Nio Inc, NVIDIA Corp, Palo Alto Networks Inc (NYSE:PANW, ETR:5AP), Snowflake Inc

AGMs: CVS Group PLC, Tritax Eurobox PLC, Genus PLC, Hays PLC, Leeds Group PLC, Made Tech Group PLC

Economic announcements: Consumer Price Index (UK), Producer Price Index (UK), Retail Price Index (UK), MBA Mortgage Applications (US), Crude Oil Inventories (US)