London’s FTSE 100 opened largely flat on Tuesday, underperforming continental peers which opened in the green despite a Wall Street sell-off.
The housing sector offered some respite in London, following well-received numbers from Persimmon but travel shares fell, with IAG the worst of the lot down 3.7%. Lloyds Banking fell 2.1% as a UK watchdog signalled a possible redress as part of the motor finance saga.
The FTSE 100 index traded down just 0.78 points at 8,599.44. The FTSE 250 was up 134.64 points, 0.7%, at 20,009.82, and the AIM All-Share was up 3.17 points, 0.5%, at 685.80.
The Cboe UK 100 was flat at 858.71, the Cboe UK 250 was up 0.8% at 17,414.97, and the Cboe Small Companies rose 0.1% at 15,302.72.
In Paris, the CAC 40 rose 0.6%, while the DAX 40 in Frankfurt added 0.5%.
Sterling traded at $1.2926 on Tuesday morning, rising from $1.2897 at the time of the London equities close on Monday. The euro rose to $1.0899 from $1.0838. Against the yen, the dollar was largely flat at JP¥147.18 from JP¥147.27.
A barrel of Brent fell slightly to $69.49 from $69.54, while gold rose to $2,907.73 an ounce from $2,903.30.
In New York on Monday, the Dow Jones Industrial Average tumbled 2.1%, the S&P 500 plunged 2.7% and the Nasdaq Composite slumped 4.0%.
ING analysts commented: ‘It remains hard to pick a bottom in the US sentiment slump and the ramifications for US equities. Markets are questioning both elevated valuations and the broader US investment/macro environment, and while data can stir near-term sentiment, further loss of confidence may need to be tempered by the US administration itself. Indeed, scattered calls for a US recession in the first quarter – even if probably overblown – aren’t helping. Today’s JOLTS job opening figures will be watched very carefully.’
The job openings and labour turnover survey is released at 1400 GMT.
In London, Persimmon shares spiked 3.5%. Fellow housebuilders Taylor Wimpey and Berkeley Group, up 3.1% and 2.9%, rose with it.
Persimmon reported improved annual earnings and said its sales rate has picked up so far in the new year.
Persimmon said: ‘We entered 2025 with an improved forward order book and have continued to add to it since the start of the year. In the first nine weeks of 2025, our net private sales rate per outlet per week was 0.67, up 14% compared to the same period last year.’
Among London-listed mid-caps, Rotork shot up 6.5%. It posted a rise in annual revenue, announced a buyback and reported a ‘strategic bolt-on acquisition’.
Revenue in 2024 rose 4.9% to £754.4 million from £719.1 million. However, pretax profit fell 6.8% to £140.5 million from £150.6 million.
Rotork upped its full-year payout by 7.6% to 7.75p per share from 7.20p. It also announced a buyback of up to £50 million.
Rotork unveiled the bolt-on buy of South Korean electric actuator manufacturer Noah Actuation for an enterprise value of £44 million.
Facilities by ADF slumped 29% as it said strikes in Hollywood kept a lid on revenue. The provider of production facilities for the film and television industry expects to report 2024 revenue of £35.2 million, with a £2.6 million boost from its Autotrak Portable Roadways acquisition done in September.
The wider ADF business achieved revenue that was ‘broadly flat’ from £34.8 million in 2023. This was due to project delays following the Writers Guild of America and Screen Actors Guild - American Federation of Television & Radio Artists strikes from May to November 2023.
‘The legacy impacts of the strikes have continued to recede and productions that had previously been deferred from H2 FY24 into H1 FY25 have now started in line with expectations. Together with an increased level of enquiries throughout the first quarter of the current financial year when compared to the same period in FY24, the group has a sound platform going forwards, albeit client enquiries have been made with shorter lead times than has historically been the case. The group remains well positioned to capitalise on the underlying industry drivers and growing market opportunities in the medium-term,’ the firm said.
‘The board anticipates that in H2 FY25 the market will provide improved visibility and return to more normal levels of activity with several ’block-busters’ announced including new Avengers, Spiderman, Fantastic Four and Daredevil movies, alongside a number of high profile [High-end TV] productions including Harry Potter, The Beatles, Icebreaker, Rivals, and further series of Slow Horses.’
However, it cautioned that some of its operating segments ‘remain relatively subdued’ so far this year.
‘Whilst at this early stage in the year revenue and profitability for FY25 are expected to be materially below current market expectations,’ it cautioned.
It puts market expectations for adjusted earnings before interest, tax, depreciation and amortisation at £15.8 million and forecasts for revenue at £56.8 million.
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