Markets · Economy 51FTSE 100 down 69 points at 10,756 Wall Street slated to head lower Manufacturing PMI slips to 51.7 Factory hiring grows at fastest rate in over two years Oxford Biomedica and Oxford Nanopore lead mid-cap fallers Gold miners remain under heavy pressure 1.07pm: Inflation, Iran and interest rates The FTSE 100 is down 69 points in early afternoon trade, though it's clawed back some ground from its session low. London joins a broader bout of nerves running through global markets, with US futures also pointing lower ahead of the Wall Street open. Oil is the story driving sentiment.
Brent crude is holding near $90 a barrel after the US and Iran traded blows over the weekend, and that's enough to keep buyers cautious just as markets head into September, historically the weakest month for stocks. The bond market isn't offering much comfort either, with the yield on 10-year US treasuries sitting around 4.75% as investors weigh the chances of another Fed rate rise. There's a busy week of data ahead, with American JOLTS figures due later on Tuesday, offering an early read on hiring and quits before Friday's jobs report.
Earnings season is largely done, but updates from Dell and Palo Alto Networks this week should shed light on corporate tech spending. 11.00: FTSE 250 sinks as PMI offers mixed signals The FTSE 250 extended its decline after the latest manufacturing figures delivered conflicting signals about the UK economy and the outlook for interest rates. The mid-cap index was down 471.16 points, or 1.9%, at 24,467.63. That represented a further decline of around 77 points from the 10.15am update.
The FTSE 100 was comparatively stable, falling 113.09 points, or 1%, to 10,711.17. The AIM All-Share dropped 1.8% to 796.90. S&P Global’s manufacturing purchasing managers’ index slipped to 51.7 in August from 51.9 in July, marking its weakest reading since March.
The final result was nevertheless better than the preliminary estimate of 51.5 and remained above the 50 level separating growth from contraction. Output and new orders continued to increase, while employment expanded at its fastest pace in more than two years. Business optimism also reached a six-month high.
The survey therefore offered no simple signal for markets. Slower headline growth pointed to some loss of economic momentum, but stronger hiring and orders could temper expectations for lower interest rates by suggesting that labour and demand pressures remain firm. Domestically exposed and growth-oriented mid-caps tend to be more sensitive to changes in UK borrowing-cost expectations than the internationally focused FTSE 100.
Oxford Biomedica and the separately listed Oxford Nanopore Technologies were the FTSE 250’s two biggest fallers. Oxford Biomedica dropped 9.5% to 474p, while Oxford Nanopore declined 8.4% to 161.3p. The companies are independent businesses and their simultaneous declines did not indicate a shared corporate development.
Mining shares also remained under pressure. Pan African Resources fell 7.9%, Hochschild Mining declined 7.6% and Atalaya Mining dropped 5.6%. Among blue chips, Endeavour Mining plunged 8.2% to 4,355p and Fresnillo fell 5.8% to 2,986p.
Antofagasta declined 3.9%. Reckitt Benckiser continued to lead the FTSE 100 risers with a 4.4% gain. BP advanced 3.9% and Shell added 1.5% as higher oil prices provided support to the energy sector. 10.15am: Weak mortgage figures add to worsening mood The London market sell-off has accelerated following weaker-than-expected mortgage data, with the FTSE 100 falling 121.48 points, or 1.1%, to 10,702.78.
The index had been down 0.5% at 9.25am, meaning it lost a further 70 points as selling broadened across the market. Mid-sized companies remained under heavier pressure. The FTSE 250 dropped 394 points, or 1.6%, to 24,544.79, while the FTSE All-Share declined 1.2%.
Bank of England figures showed lenders approved 56,053 mortgages for house purchases in July, the lowest number since January 2024. The total fell from 58,215 in June and was well below the consensus forecast of 59,500. Net mortgage borrowing dropped to £4.3bn from £7.7bn, while the effective interest rate on newly drawn mortgages rose to 4.45% from 4.35%.
In contrast, net unsecured consumer borrowing increased to slightly more than £2bn, its highest level since November 2025. Gold producers remained at the bottom of the FTSE 100 as London shares continued to adjust to bullion’s retreat over the bank holiday period. Endeavour Mining plunged 7.6% to 4,384p and Fresnillo fell 5.3% to 3,003p.
Rolls-Royce and ICG both lost 4.6%, while Melrose Industries declined 4.1%. InterContinental Hotels Group, Barclays and Auto Trader were also among the leading fallers. Reckitt Benckiser continued to buck the weaker market, rising 4.3%.
Higher oil prices supported BP, up 3.8%, and Shell, which gained 1.6%. The mid-cap sell-off was led by Oxford Biomedica, down 8.6%, and Oxford Nanopore Technologies, which fell 7.7%. Pan African Resources, Ceres Power, Hochschild Mining and Atalaya Mining dropped by more than 6%.
Bodycote led the FTSE 250 risers with a 4.5% gain, followed by Drax, up 3.8%. The AIM All-Share fell 1.6% to 798.50. Finseta remained the standout casualty, dropping 37.2%, while ProService Building Services jumped 24.4%, Chariot gained 17.7% and ImmuPharma rose 13.9%. 9.25 am: Early resilience fades as sell-off broadens The FTSE 100’s initially steady start has deteriorated, with London’s blue-chip index falling 50.93 points, or 0.5%, to 10,773.33.
Losses were more pronounced among mid-sized companies. The FTSE 250 dropped 239.47 points, or 1%, to 24,699.32, while the FTSE All-Share declined 0.5%. Gold miners were among the heaviest blue-chip casualties as bullion remained near a two-week low.
Endeavour Mining fell 5.6% to 4,479p, while Fresnillo dropped 3.5% to 3,060p. Rolls-Royce declined 4%, followed by ICG, down 3.4%, and InterContinental Hotels Group, which lost 2.9%. Auto Trader, JD Sports Fashion and Aberdeen Group were also among the notable fallers.
Energy stocks provided the main resistance to the wider decline. BP surged 4% to 535.1p and Shell gained 2.1% to 3,413.5p as Brent crude advanced above US$91 a barrel. Reckitt Benckiser remained the FTSE 100’s leading riser, climbing 4.6%, while Entain added 3% and ConvaTec rose 2.6%.
The FTSE 250 was pulled lower by Ceres Power, down 7%, and Oxford Biomedica, which dropped 6%. Watches of Switzerland fell 5.4%, while Pan African Resources, Atalaya Mining and Hochschild Mining also retreated as commodity shares came under pressure. Bodycote bucked the mid-cap weakness with a 4.4% gain.
Drax rose 3.7%, Hunting added 3.3% and Energean advanced 2.6%. Smaller companies were also under pressure, with the AIM All-Share falling 1.2% to 801.33. Finseta plunged 39.5% to lead the AIM fallers, followed by Greatland Resources, down 8.2%.
Against that weaker backdrop, ProService Building Services jumped 24.4%, ImmuPharma gained 13.9% and Ondine Biomedical rose 12.8%. Windar Photonics shares plunged almost 80% after trading resumed on AIM following a suspension lasting more than two months. 8.15 am: FTSE steadies near flat as Reckitt and oil majors lead The FTSE 100 has shaken off most of its anticipated opening decline, trading 3.5 points lower at 10,820.76 shortly after the bell. London’s blue-chip index was down just 0.03%, having moved between 10,820.67 and 10,829.19.
The FTSE 250 was virtually unchanged, rising 0.63 points to 24,939.42. Reckitt Benckiser led the blue-chip risers, surging 4.8% to 5,378p, followed by Bunzl, which gained 2.8% to 2,870p. Higher crude prices supported the oil majors, with BP climbing 2.6% to 527.7p and Shell advancing 1.5% to 3,396p.
Entain added 2%, while Vodafone and Centrica rose 1.4% and 1%, respectively. InterContinental Hotels Group was the biggest FTSE 100 faller, dropping 3.8% to 156.4p. Fresnillo declined 3% despite gold’s earlier strength, while British Airways owner International Consolidated Airlines Group and Rolls-Royce both fell around 2.6%.
JD Sports Fashion, Barclays, Computacenter and ICG were also down by more than 2%. The broader market remained subdued. The FTSE 350 and All-Share indices slipped 0.03%, while the FTSE AIM 100 fell 0.4% and the AIM All-Share declined 0.3%.
The early pattern indicated that gains among consumer defensives and energy stocks were cushioning weakness across travel, financial and technology-related shares. 7.15 am: Blue chips face cautious return after long weekend The FTSE 100 is expected to reopen lower on Tuesday as investors return from the bank holiday weekend to rising oil prices, weakened gold, renewed inflation concerns and a weaker global equity backdrop. September contracts indicated an opening around 10,794, down roughly 30 points from Friday’s cash close of 10,824.26. The contract itself was 42.5 points, or 0.4%, below its previous settlement.
Fresh figures showed UK shop prices rising at their fastest rate in two years. The BRC-NIQ Shop Price Monitor recorded annual inflation of 1.5% in August, accelerating from 0.9% in July. Food inflation increased to 2.8% from 2.2%, while non-food inflation reached 0.9%.
Higher energy, commodity and supply-chain costs were among the factors blamed for the increase, which could renew pressure on retailers and consumer-facing stocks. Oil prices added to inflation concerns. Brent crude gained 0.5% to $90.94 a barrel, while West Texas Intermediate rose 0.8% to $86.41 as traders assessed the prospect of prolonged disruption in the Middle East.
The advance could lend some support to BP and Shell when trading begins, although higher fuel and transport costs may weigh on airlines, retailers and other energy-intensive businesses. Wall Street ended Monday in the red after renewed US-Iran tensions pushed oil prices and government bond yields higher. The Dow Jones Industrial Average fell 0.7%, while the S&P 500 declined 0.3%.
US index contracts were pointing fractionally higher ahead of Tuesday’s session. Asian trading was mostly subdued. Japan’s Nikkei 225 fell around 1%, with semiconductor stocks among the main casualties, while Hong Kong’s Hang Seng was down close to 0.9%.
Australia’s ASX 200 finished 0.1% lower at 9,065.50. Gold traded near US$4,490 an ounce, marginally higher against Monday’s settlement but around 0.9% below Friday’s level, leaving Fresnillo and Endeavour Mining vulnerable to catch-up selling after the bank holiday. Copper’s 0.6% rise could offer some support to diversified miners such as Antofagasta and Anglo American.
Bitcoin was trading near US$79,100, up approximately 1.4% over the session after moving between $77,773 and $79,225. The domestic economic calendar includes August’s manufacturing purchasing managers’ index alongside consumer-credit and mortgage-approval figures at 9.30 am. Corporate announcements are expected from Ashtead Technology and Michelmersh Brick Holdings.
Investors will also watch the closing prices used for FTSE Russell’s quarterly index review. Indicative changes suggest easyJet and Ithaca Energy could enter the FTSE 100, replacing Entain and Persimmon. The confirmed reshuffle will be announced after Wednesday’s closing bell.
Source: Proactive Investors
