The FTSE 100 was largely flat again on Tuesday as investors held off making big bets, with the French political crisis continuing to rumble on and the US government shutdown extending into its second week.
It was a busy day for earnings and trading statements in London, but positive updates were finely balanced with negative, and London’s leading index was trading up just 9 points at 9,488 at the time of writing.
“The FTSE 100 held firm at the market open on Tuesday as strength in energy stocks was offset by weakness in miners and banks,” said Russ Mould, investment director at AJ Bell.
Shell was the standout corporate story on Tuesday after the oil giant said in its earnings teaser that strong energy trading helped offset weakness elsewhere in the group. Shell shares were 1.8% higher at the time of writing.
“A boost in activity at the trading division has helped Shell to weather the ongoing troubles in its chemicals division,” explained Chris Beauchamp, Chief Market Analyst at IG.
“But the bigger problem of a struggling oil price refuses to go away, and while OPEC+ might have balked at outsize production increases for now, the worries about weak demand will just not go away.”
Rentokil Initial was the FTSE 100’s top riser, continuing its recent rally with 2% gains.
Housebuilders were weaker after the latest house price data from Halifax showed average UK house price growth slowing to 1.3%. Halifax’s data for September paints a much gloomier picture of house price growth than Nationwide’s latest reading, raising questions about the state of the property market.
“Halifax’s latest data shows house price growth easing to 1.3% year-on-year in September, with a second monthly dip hinting at a market losing momentum,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.
“While lower mortgage rates and steady wages are helping to steady sentiment, affordability remains a headwind. Housebuilder shares have been under pressure all year, and underperformance looks set to continue with no obvious driving force as we move into the final quarter of 2025.”
Persimmon fell over 1% and Barratt Redrow lost 0.6%.
Retailers JD Sports, Kingfisher and Sainsbury’s fell in sympathy with a dire update from B&M European Value that showed slowing sales growth. Although B&M admitted internal failings, investors will be concerned about broader consumer weakness.
Supermarkets Tesco and Sainsbury’s were under heavy pressure after Asda announced a wave a price cuts that could threaten their market share.
JD Sports was the FTSE 100’s top faller with a loss of 1.5%.