London midday: FTSE on back foot as oil price rises subdue markets

(Sharecast News) - The London market remained in the red at midday on Thursday, as rising oil prices and concerns about the sustainability of artificial intelligence spending subdued stocks worldwide.

The FTSE 100 was down 0.40% at 10,709.79. Brent crude was up 3% at $111.63 a barrel and West Texas Intermediate was 2% stronger at $99.19, after Houthi attacks in Saudi Arabia heighted fears that conflict in the Middle East was intensifying.

Susannah Streeter, chief investment strategist at Wealth Club, added: "Risk-off sentiment is returning amid high geopolitical tensions and a swirl of worries about financing the AI juggernaut. Even the more defensive FTSE is feeling the heat, as concerns about the chronic energy crunch and the inflationary impact ahead weigh on the index."

Russ Mould, AJ Bell's investment director, added: "The FTSE 100 fell as the mood across global markets darkened. However, it outperformed Asian and European counterparts thanks to decent showing from its contingent of energy stocks and traditionally defensive names.

"In London, miners were under pressures as metal prices eased on fears about the global economy, and names with exposure to the technology sector also struggled."

Fresnillo topped the blue chip fallers board, with Anglo American, Antofagasta, Rio Tinto and Endeavour also lower, as was commodities giant Glencore. The rise in fuel prices weighed on British Airways-owner International Consolidated Airlines Group, but helped send oil majors BP and Shell higher.

J Sainsbury's also came under pressure, despite the supermarket giant posting improved interim sales and profits and lifting annual guidance.

The supermarket giant, which is in the process of selling general retailer Argos, said underlying sales excluding fuel rose 2.6% in the 28 weeks to 12 September, to £14bn, while underlying operating profits were 3.6% stronger at £525m.

Grocery sales sparked 2.9%, at £13.2bn, driving by ongoing volume growth and lower inflation, while general merchandising and clothing sales fell 3.4% at £800m.

The chain also lifted its full-year guidance for adjusted profits, in light of the sale of Argos - which is due to complete in early 2027 - and the first interim performance. It now expects profits to come in between £1.025bn and £1.065bn.

Mould said: "Sainsbury's is having to work hard to maintain its profitability, and the contrast with Tesco, where margins are improving, will do nothing to dampen speculation about Sainsbury's pursuing a merger in the sector."

Barclays reported a slightly lower-than-expected third-quarter profit following a strong performance in equities but weakness in fixed income, as it announced a £500m share buyback. It also confirmed plans to shed around 5,000 jobs as it adopts more artificial intelligence.

In the three months to the end of September, pre-tax profit grew 12% to £2.3bn, while earnings per share were 18% higher year-on-year at 12.3p.

The return on tangible equity rose to 11.7% in Q3 from 10.6% in the same period a year earlier, and Barclays said it was on track to deliver a RoTE greater than 12% in 2026.

Chief executive C. S. Venkatakrishnan said: "With one quarter to go before the end of our original three-year plan, we have either achieved or are on track to achieve all of our 2026 group targets. We are confident in and committed to the 2028 targets that we laid out earlier in the year."

Richard Hunter, head of markets at Interactive Investor, said: "Compared to its own high standards, this update is something of a mixed bag, which is unlikely to blow away the clouds which have been hovering over the sector."

The biggest gainer was Rentokil, which topped the leaders board after investors welcome signs of stabilisation in its North American business.

The pest control group also said it had approved a $200m share buyback and announced the retirement of chief financial officer Paul EdgecliffeJohnson, as it posted a solid thirdquarter performance and reiterated fullyear guidance.

It reported 3.4% organic revenue growth in Q3, with total revenues rising 4% to $1.89bn, as North America delivered 3.2% organic growth, including a 2.4% rise in pest control revenues.

Information and analytics firm Relx said trading remained strong through the first nine months of 2026, with underlying revenues up 7% and continued momentum across its higher-value analytics and decision tool businesses. The FTSE 100-listed firm also reaffirmed its fullyear outlook for another year of solid revenues, adjusted operating profits and earnings per share growth.

Outside of the FTSE 100, and Inchcape fell sharply, after the automotive distributor cut its full-year operating margin guidance, pointing to underperformance in Australia.

Market Movers

FTSE 100 (UKX) 10,711.11 -0.39%

FTSE 250 (MCX) 24,242.87 -0.81%

techMARK (TASX) 6,231.58 0.23%

FTSE 100 - Risers

Rentokil Initial (RTO) 338.70p 7.63%

London Stock Exchange Group (LSEG) 9,254.00p 5.62%

Ithaca Energy (ITH) 299.00p 2.02%

BP (BP.) 625.60p 1.41%

BT Group (BT.A) 209.40p 1.36%

Shell (SHEL) 3,955.00p 1.22%

British American Tobacco (BATS) 4,438.00p 1.19%

IG Group Holdings (IGG) 941.00p 1.13%

Experian (EXPN) 3,011.00p 1.11%

Smith & Nephew (SN.) 1,101.00p 0.96%

FTSE 100 - Fallers

Fresnillo (FRES) 2,525.00p -4.10%

Anglo American (AAL) 3,696.00p -3.70%

Sainsbury (J) (SBRY) 347.30p -3.66%

Antofagasta (ANTO) 3,105.00p -3.63%

Lion Finance Group (BGEO) 12,290.00p -3.23%

Pearson (PSON) 1,321.50p -3.05%

Rio Tinto (RIO) 6,286.00p -3.03%

Abrdn (ABDN) 219.40p -2.66%

InterContinental Hotels Group (IHG) 165.90p -2.64%

Standard Chartered (STAN) 2,011.00p -2.57%

FTSE 250 - Risers

Renishaw (RSW) 5,510.00p 2.99%

Harbour Energy (HBR) 300.00p 1.83%

Halfords Group (HFD) 258.50p 1.77%

HGCapital Trust (HGT) 374.50p 1.77%

RS Group (RS1) 777.50p 1.57%

Diversified Energy Company (DI) (DEC) 1,076.00p 1.51%

AJ Bell (AJB) 595.00p 1.45%

B&M European Value Retail (BME) 276.00p 1.40%

Rathbones Group (RAT) 1,614.00p 1.38%

Trainline (TRN) 225.00p 1.26%

FTSE 250 - Fallers

Inchcape (INCH) 633.00p -7.79%

RHI Magnesita N.V. (DI) (RHIM) 2,505.00p -6.36%

Ceres Power Holdings (CWR) 275.40p -5.03%

Bloomsbury Publishing (BMY) 640.00p -4.76%

Hochschild Mining (HOC) 467.60p -4.57%

Morgan Advanced Materials (MGAM) 253.50p -4.34%

Pan African Resources (PAF) 112.60p -4.17%

Seraphim Space Investment Trust (SSIT) 179.40p -3.67%

Domino's Pizza Group (DOM) 221.80p -3.65%

Dunelm Group (DNLM) 856.00p -3.39%