The FTSE 100 rose again on Tuesday as a weaker pound helped support the index following a strong session for US stocks amid hopes of progress in US/China trade talks and positive earnings.
London’s flagship index was 0.4% higher at the time of writing.
“It’s hard to imagine that markets were in panic mode only four days ago,” said Russ Mould, investment director at AJ Bell. “It’s like all the troubles faded away over the weekend, and investors are back in risk-on mode.
“Wall Street enjoyed a particularly strong session on Monday, and that optimism has extended to Asia and Europe on Tuesday. The focus is now on US interest rate cuts, the new corporate reporting season, and US/China trade talks.
Segro was the FTSE 100’s top riser after the group announced a promising uptick in rental agreements and a growing pipeline of data centre business.
“Segro’s latest update shows an encouraging rebound in momentum across its logistics and industrial portfolio. £22 million of new rent signings in the quarter and a 37% uplift on rent reviews underline resilient tenant demand despite a still challenging rate backdrop,” explained Adam Vettese, market analyst for eToro.
“Its data centre strategy is emerging as a powerful growth driver, with new pre lets helping deliver the most productive quarter of development since early 2024 and capacity expansion in key markets like London.”
Segro shares were 3% higher at the time of writing, with the group emerging as one of the FTSE 100’s most direct ways of playing the AI story.
Unilever shares slipped marginally on news that the spinout of its Magnum has been delayed due to the US government shutdown.
“Unilever is in the process of demerging its ice cream division, now known as The Magnum Ice Cream Company, onto the US stock market. But the deal has hit a snag, in the form of the US Government shutdown,” said Steve Clayton, head of equity funds, Hargreaves Lansdown.
“With federal employees laid off until Congress agrees a new funding deal, there’s simply no-one available to approve the paperwork, putting the demerger on hold. With neither the White House nor the opposing Democrats seemingly prepared to give ground on spending, Magnum’s stock-market debut is stalled for now.”
Unilever shares were down around 1% at the time of writing.
Bunzl shares slipped 2% after announcing a steady, yet fairly uninspiring, Q3 performance.
Miners were the biggest drag on the index on a sector basis as both diversified and precious metals miners fell. However, it was the precious metals that were the most heavily hit as the gold price continued to pull back from its record run.
“Gold edged lower on Tuesday as investors took profits following recent record highs, while signs that the US government shutdown could be resolved this week could add to the selling pressure,” said Joseph Dahrieh, Managing Principal at Tickmill.
Fresnillo lost over 4% and was the biggest faller, and gold-focused miner Endeavour gave up 3%.