LIVE – Updated at 09:20
Wall Streetfutures were trading lower today following the failure of US lawmakers last night to reach an agreement on a funding deal toprevent a government operations shutdown.
The FTSE 100index began today’s session in historic territory followingposting its strongest quarter since the end of 2022.
On the corporate front, Greggsstocks surged following the baker’s announcement of enhanced sales results in August and September.
Taylor Wimpey faces declining demand due to budget instability
09:20 , Graeme Evans
Taylor Wimpey has noted a decline in sales momentum as the upcoming November Budget increases worries that are affecting homebuyer confidence.
It noted a net private sales rate of 0.65 per store per week over the nine weeks ending September 28 – a measure of the typical number of homes sold at each of its project locations.
This was below the 0.7 rate observed during the same period in the previous year.
Taylor Wimpey informed shareholders that it is on course to achieve its goal of selling between 10,400 and 10,800 homes throughout 2025, while also expecting to generate an operating profit of approximately £424 million.
Shares rose 0.4p to 103.45p, after declining 15% this year.
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Convatec announces a $1 billion funding initiative
08:52 , Graeme Evans
A medical products and technology company listed on the FTSE 100, Convatec, has announced plans for a new research and development facility in Manchester, as part of an investment exceeding $1 billion (£742 million) in the UK and US over the next ten years.
Convatec announced it has set aside £500 million in funding for the UK, with plans to establish a new “flagship” Manchester center in 2027.
The action is viewed as a positive development for Britain’s life sciences industry as companies move to the US to counteract President Donald Trump’s trade tariffs.
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Pharmaceutical stocks boost the FTSE 100 following a historic closing, with Greggs rising 6%
08:20 , Graeme Evans
The FTSE 100 index has begun strongly, despite Wall Street futures declining due to thebeginning of the United States government shutdown.
The top-tier index in London, which saw a record closing last night following its strongest quarter since the end of 2022, rose by 0.2% or 16.87 points to reach 9367.30.
Pharmaceutical stocks helped boost the overall performance, with AstraZeneca rising 5% or 526p to 11,704p, Hikma increasing 4% or 74p to 1,772p, and GSK gaining 24p to 1,598.5p.
They mobilized following President Trump’s announcement of a government-supported website that will allow consumers to purchase medications directly from producers.
In the meantime, Diageo stock increased by 35.5 pence to 1811 pence, while the London Stock Exchange climbed 128 pence to 8644 pence.
A comforting trading report from Greggs allowed its shares to recover some of their recent losses, with the FTSE 250 stock rising 6% or 99.7p to 1703.7p.
Market worries intensify due to US government shutdown
07:56 , Graeme Evans
The initial federal government shutdown in the United StatesIn seven years, it has generated a subdued reaction on Wall Street, with futures trading now declining by approximately 0.6%.
The drop comes after a robust close to last night’s trading, with the S&P 500 index approaching a record high due to its best September performance in 15 years.
The calm approach highlights the minimal effect of past closures, like the 17-day government shutdown in October 2013.
UBS stated, “Even throughout prolonged closures, the overall economy and financial markets faced only minor interruptions, as postponed activities usually recover once the government resumes operations.”
The primary concern for traders is that delays in gathering and releasing key government economic data could affect the Federal Reserve’s choices regarding reduced interest rates.
Jacob Falkencrone, the global head of investment strategy at Saxo, stated: “Occasionally, US politics present the same recurring spectacle: legislators cannot reach an agreement on a budget, leading to portions of the federal government shutting down.”
The truth is, for financial markets, shutdowns have typically been more about drama than real damage. They may slightly affect growth in the short run and cause some anxiety, but they rarely result in long-term harm to investment portfolios.
Nevertheless, as debt increases and political divisions grow more intense than ever, investors, both within the United States and globally, are justified in questioning if this situation might be unique.
Business confidence declines due to increasing expenses – IoD
07:33 , Graeme Evans
A recent survey of business leaders revealed that confidence in the economy dropped last month due to worries about increasing costs.
The Institute of Directors reported that its monthly economic confidence index, which reflects the optimism of business leaders regarding the UK economy’s future, recorded a score of -74 for September.
This represented a major drop from -61 and reached the lowest point since the index began over nine years ago.
IoD chief economist Anna Leach stated, “Business confidence has reached new lows in September, after a brief uptick at the end of summer.”
Conditions deteriorated overall, with cost projections reaching an all-time high, primarily due to rising labor expenses. Investment forecasts fell once more, yet stayed somewhat above the latest low recorded in November 2024.
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Home prices rose by 0.5% on average in September.
07:27 , Graeme Evans
House prices increased by 0.5% in September, resulting in an annual rate that remained largely stable at 2.2%, according to data released by Nationwide today.
The housing cooperative reported a mean cost of £271,995 for that period.
Chief economist Robert Gardner noted that the consistency in the yearly rate of home price increases reflected the stability of market activity during the last three months.
He mentioned that the monthly count of approved mortgages for home purchases has remained steady at approximately 65,000 applications, near the level seen before the pandemic.
Gardner stated, “Although there are still uncertainties in the global economy, the fundamental factors that could influence home buyers in the UK continue to be favorable.”
Unemployment remains low, wages are increasing at a positive rate, household finances are robust, and interest rates may decrease somewhat more if the Bank Rate is reduced in the next few months, as we and many other analysts anticipate.
If the overall economic recovery continues, it is expected that housing market activity will increase slowly in the coming quarters.
Data for the three months ending in September showed that most areas experienced a slight decrease in yearly home price growth.
Northern Ireland was the top performer, showing an annual rise in home prices of 9.6% during the period.
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Greggs announces a recovery in sales, with an improved outlook for cost inflation
07:11 , Graeme Evans
The bakery chain Greggs announced today that there has been an uptick in sales during August and September, following a decline in demand during July’s heatwave.
Sales at company-operated stores, on a like-for-like basis, increased by 1.5% for the 13 weeks ending September 27, resulting in a year-to-date growth of 2.2%.
Despite a slight improvement in the outlook for cost inflation in 2025, the company maintained its original projections for the fiscal year.
It stated: “Greggs keeps advancing despite tough market circumstances, enhancing its offerings even more and increasing the brand’s ease of access for a broader customer base through careful store expansion.”
FTSE 100 remains stable following a record closing, while U.S. markets decline
07:03 , Graeme Evans
US stock markets are expected to open lower following politicians’ failure to secure a funding agreement last night, which could lead to a US government shutdown.
Futures trading indicates a drop of approximately 0.4% in the region, whereas the FTSE 100 index is expected to open with minimal changes.
The premier league in London ended last night with a record of 9350.43.after an increase of 0.5% or 50.59 pointsThe benchmark index increased by 6.7% during the third quarter, marking its strongest showing since the conclusion of 2022.
The Dow Jones Industrial Average increased by 0.2% on the previous day, resulting in a 2.4% rise for the index during September, which is typically a slow trading month. The S&P 500 gained 0.4%, marking a 4.3% overall increase for the month.
The U.S. government shutdown caused the gold price to rise to $3,863 per ounce, while the cost of Brent crude is marginally higher at $66.14 per barrel.
