London open: FTSE gains amid raft of corporate releases; Diageo slides

(Sharecast News) - London stocks rose in early trade on Wednesday following positive sessions in the US and Asia, as investors sifted through a raft of corporate news, including results from HSBC and Diageo, and looked ahead to earnings from US tech giant Nvidia.

At 0830 GMT, the FTSE 100 was up 0.8% at 10,760.27.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said "the apocalyptic AI narrative" was taking "a small step back".

"There's plenty for investors to sink their teeth into, with well-covered results from HSBC, Diageo and Aston Martin setting the tone for the day," he said. "Against a steadier macro backdrop, stockspecific stories are back in the driving seat."

After the close of US markets, tech giant Nvidia will report. Kathleen Brooks, research director at XTB, said investors are expecting "a monster set of results" as it continues to benefit from massive capex spend by the hypercalers.

"Nvidia has been relatively unscathed by the ferocious sell off across some tech sectors in recent months, and they are expected to deliver monster revenues to the tune of $65.9bn for last quarter," she said.

In UK equity markets, HSBC shot higher as it reported better-than-expected annual results despite a 7.4% fall in pre-tax profits due to the adverse impact from legal provisions, organisational simplification and the sale of its French-retained portfolio of loans.

Pre-tax profits at the lender came in at $29.9bn in 2025, beating estimates of $28.86bn. Revenue rose 4% to $68.27 versus company-compiled consensus forecasts of $67.36bn.

St James's Place rose as it posted record full-year funds under management, while Hiscox gained as it hailed record full-year results and announced a new $300m share buyback.

International Personal Finance and Lion Finance were both higher after results.

Aston Martin Lagonda rallied despite saying it was planning to cut 20% of its workforce as it reported a widening of its losses, citing weak demand and a hit from tariffs. The luxury car maker had already warned last week that the annual loss would be worse than expected.

On the downside, drinks giant Diageo tumbled as it posted a fall in interim sales and halved the dividend after weak trading in North America weighed heavily.

Net sales fell 4% to $10.5bn in the six months to 31 December, or by 2.8% on an organic basis. Adjusted operating profits before one-off items were 2.8% lower, at $3.3bn. The dividend was cut to 20cents a share, from 40.5cents. Diageo said the reduction would bolster the balance sheet and create more financial flexibility.

Haleon was also in the red as its full-year organic revenue growth of 3% fell short of its guidance for 3.5%.

Me Group tumbled as it delayed the publication of its full-year results but reaffirmed guidance, while Trainline tanked as it announced the departure of chief executive Jody Ford after more than six years at the company.