London open: FTSE falls as oil prices rise; HSBC under the cosh

(Sharecast News) - London stocks fell in early trade on Wednesday following an uninspiring Asian session, as Brent crude traded back above $101 a barrel.

At 0845 BST, the FTSE 100 was down 0.5% at 10,493.04, while Brent crude was up 0.5% at $101.10 a barrel and West Texas Intermediate was 0.3% firmer at $89.72.

Susannah Streeter, chief investment strategist at Wealth Club, said: "The exuberance which washed over financial markets after energy prices dipped slightly has faded, with renewed attacks in the Middle East demonstrating how a resolution to the crisis remains elusive. The Footsie was on the back foot in early trade as investors assessed the inflationary pressures hanging over markets, and the unpalatable central bank medicine which may have to be administered.

"However, Wall Street looks set for a broadly flat open, with the current febrile environment seemingly taken in investors' stride as the new normal. The markets are still pricing in mammoth advances in AI spending across the globe, keeping tech giants buoyant and indices at record levels. Brent crude has risen back above $101 a barrel following attacks by Yemen's Houthi rebels on targets in southern Saudi Arabia, with the fresh escalation reviving concerns about the security of energy supplies.

"Attacks on ships in and around the Strait of Hormuz have also ramped up, with multiple incidents reported by the UKMTO this week, a Royal Navy-led maritime security monitoring service which has become a key source of information for shipping companies concerned about security. It's clear that traversing the Strait remains dangerous, even though more tankers have been making passage through the waterway."

On home shores, the latest house price index from Lloyds showed that prices were steady in September despite the impact of higher interest rates.

House prices were unchanged on the month following a 0.3% decline in August. On the year, prices were flat in September, having fallen 0.4% a month earlier. The average price of a property was £298,441, versus £298,395 in August.

Northern Ireland continued to lead the UK, with annual house price growth rising to 7.4% from 6.8% a month earlier. Meanwhile, Greater London recorded the biggest annual fall, with prices down 2.2% year-on-year.

Andrew Asaam, mortgages director at Lloyds, said: "While the market overall has been fairly subdued, property prices have so far proved resilient during a period of higher mortgage rates, which has been driven by changing expectations around the future path of Base Rate. That's mirrored in wider economic data, with household spending holding up better than many expected despite energy and other cost pressures arising from the Middle East conflict.

"Whether that picture continues is likely to depend on how confident consumers feel that the latest costofliving pressures will prove temporary. Confidence has long been a key driver of housing market activity, and will play an important role in shaping demand over the remainder of this year and into 2027.

"For now, the housing market appears to be balancing buyer caution with continued underlying demand. While higher mortgage rates and wider economic uncertainty are encouraging some people to take a more measured approach, new enquiries from prospective buyers are now at their highest since February. That should help sustain activity in the near term, with any movement in house prices likely to remain modest."

In equity markets, HSBC fell following a report it's planning sweeping job cuts in its UK wealth management business, drastically reducing its ranks of financial advisers and other specialists as part of a push to use AI to help serve wealthy clients.

According to the Financial Times, which cited people familiar with the plans, the bank will cut roles across its UK wealth business. About half of the business's management and specialist roles are expected to go, while the reduction in the ranks of financial advisers will be closer to 70%.

Pennon Group fell sharply after launching a fully underwritten £550m rights issue at a 35.5% discount and saying it would be rebasing its dividend by around 30%.

On the upside, Shell nudged higher as it lifted its third-quarter integrated gas production forecast.

Avon Technologies surged as it upgraded its full-year earnings outlook, while Bridgepoint gained as it lifted its 2026 earnings guidance, citing an "exceptional" fund performance in ECP V.

Market Movers

FTSE 100 (UKX) 10,493.04 -0.46%

FTSE 250 (MCX) 24,160.99 -0.22%

techMARK (TASX) 6,136.89 0.01%

FTSE 100 - Risers

Haleon (HLN) 339.00p 1.95%

Reckitt Benckiser Group (RKT) 5,046.00p 1.89%

Melrose Industries (MRO) 465.80p 1.87%

JD Sports Fashion (JD.) 81.64p 1.69%

Marks & Spencer Group (MKS) 390.30p 1.68%

Next (NXT) 14,645.00p 1.42%

Smith & Nephew (SN.) 1,024.00p 1.24%

Vodafone Group (VOD) 126.15p 1.12%

BT Group (BT.A) 196.75p 0.92%

Relx plc (REL) 2,582.00p 0.82%

FTSE 100 - Fallers

Prudential (PRU) 902.60p -2.25%

United Utilities Group (UU.) 1,385.00p -2.18%

Informa (INF) 867.20p -2.10%

Anglo American (AAL) 4,065.00p -2.02%

Severn Trent (SVT) 3,044.00p -1.93%

Investec (INVP) 606.00p -1.78%

IG Group Holdings (IGG) 943.50p -1.51%

Spirax Group (SPX) 7,250.00p -1.49%

Antofagasta (ANTO) 3,764.00p -1.41%

HSBC Holdings (HSBA) 1,447.40p -1.40%

FTSE 250 - Risers

Avon Technologies (AVON) 2,125.00p 11.64%

Bridgepoint Group (Reg S) (BPT) 374.20p 8.88%

Syncona Limited NPV (SYNC) 126.00p 3.28%

B&M European Value Retail (BME) 252.20p 3.25%

ICG Enterprise Trust (ICGT) 1,390.00p 2.77%

Foresight Environmental Infrastructure Limited (FGEN) 89.20p 2.53%

Great Portland Estates (GPE) 305.60p 2.20%

IntegraFin Holding (IHP) 373.00p 2.19%

Ocado Group (OCDO) 269.00p 2.13%

Diversified Energy Company (DI) (DEC) 1,056.00p 1.92%

FTSE 250 - Fallers

Pennon Group (PNN) 381.60p -14.79%

Raspberry PI Holdings (RPI) 652.75p -3.45%

Oxford Nanopore Technologies (ONT) 224.20p -3.29%

Ceres Power Holdings (CWR) 394.60p -3.04%

CMC Markets (CMCX) 661.00p -2.36%

Inchcape (INCH) 673.50p -2.19%

Hill and Smith (HILS) 3,175.00p -2.15%

Hochschild Mining (HOC) 512.50p -1.91%

Genuit Group (GEN) 281.00p -1.82%

Playtech (PTEC) 375.40p -1.68%