The FTSE 100 started the session 48.47 points higher at 10,733.35. This upward movement was driven by a slowdown in UK shop price inflation, which helped balance out ongoing uncertainty between the US and Iran concerning the potential reopening of the Strait of Hormuz. Meanwhile, Brent crude futures climbed 1.26% to reach USD 106.6 per barrel, and US West Texas Intermediate (WTI) increased by 1.08% to USD 93.60 per barrel.
Early Tuesday, sterling traded at USD 1.3233, slipping from its USD 1.3256 level at the close of London equities on Monday. Against the euro, the currency dipped to EUR 1.1651, down from EUR 1.1658 the previous day.
Gainers & Losers
Among the top performers, GSK advanced 2.07% to 1,898.50p, and Antofagasta moved up 2.00% to 3,725p. AstraZeneca gained 1.99% to reach 12,740p, Halma rose 1.73% to 3,526p, and Anglo American increased 1.72% to 4,033p. Additionally, Spirax Group climbed 1.61% to 7,255p.
On the losing side, SSE dropped 2.36% to 2,400p, while National Grid decreased 1.38% to 1,112p. British American Tobacco fell 0.78% to 4,190p, Admiral Group slid 0.65% to 3,650p, and Shell dropped 0.60% to 3,632.50p. Unilever also saw a decline, dropping 0.45% to 4,650p.
Shop Price Inflation Eased
Data from the British Retail Consortium showed that annual shop price inflation slowed to 1.4% in September, down from 1.5% in August. While this came in below the projected 1.5%, it remained above the three-month average of 1.3%.
Food inflation decelerated from 2.8% to 2.5%, and non-food inflation edged down from 0.9% to 0.8%. The British Retail Consortium noted that while retailers are absorbing rising employment costs, business rates, packaging taxes, and energy bills, there is a limit to how much financial pressure they can absorb. Broader consumer price inflation reached 3.1% in August and is projected to exceed 4% by early 2027 as the conflict involving Iran pushes energy costs higher.
AstraZeneca Invests USD 2 Billion in Cancer Drug
AstraZeneca has committed USD 2 billion to US pharmaceutical company Summit Therapeutics as part of a major cancer research collaboration. As part of the agreement, AstraZeneca will acquire 109,000 shares of the Nasdaq-listed firm at a price of USD 18.36 per share.
Dr. Maky Zanganeh, co-chief executive of Summit, characterized the agreement as the beginning of “an exciting new chapter in the advancement” of the company’s novel cancer therapies. Following the announcement, Summit shares surged more than 15% in after-hours trading.
Burnham Set to End Triple Lock
During his conference speech today, Andy Burnham is expected to indicate his openness to re-evaluating the pension triple lock, a decision that risks causing divisions within the Labour Party.
In what marks his debut conference address as Prime Minister, Burnham will argue that the triple lock—which ensures the state pension increases in line with inflation, average earnings, or 2.5%—is unsustainable in its current form and warrants review ahead of the party’s upcoming manifesto, according to the Telegraph.
Unite union general secretary Sharon Graham told the Times that the proposal “would be almost electoral suicide,” whereas Scottish Secretary Douglas Alexander remarked to Times Radio that younger generations are currently facing a “really raw deal.”
Global Market View
Across the US, Dow Jones Industrial Average futures dropped 0.12%, S&P 500 futures fell 0.7%, and Nasdaq-100 futures dipped 0.04%.
In Asian trading on Tuesday, Tokyo’s Nikkei 225 dropped 0.6% to 65,481.27, while China’s Shanghai Composite rose 0.18%. Hong Kong’s Hang Seng declined 0.40%, and South Korea’s Kospi slipped 0.27%. Across India, the Nifty 50 and the Sensex posted losses of 0.46% and 0.49%, respectively.
