London open: FTSE nudges up as investors mull US midterm results

(Sharecast News) - London stocks nudged higher in early trade on Wednesday as investors mulled news the Democrats have won the Senate and the House in the US midterm elections.

At 0840 GMT, the FTSE 100 was 0.1% firmer at 10,652.33.

Patrick Munnelly at Tickmill Group said: "A Democratic sweep raises questions about the outlook for AI regulation, energy policy, corporate taxation, antitrust enforcement and data-centre permitting.

"The technology sector is particularly exposed because the recent equity correction has already placed AI capex, cloud spending and semiconductor valuations under scrutiny. Any prospect of tighter oversight now lands on a sector with weakened momentum.

"AI stocks are likely to remain sensitive to the regulatory angle. Democratic opposition to rapid data-centre expansion could focus on power use, environmental constraints, local infrastructure strain, competition policy and the social consequences of AI deployment. None of this necessarily breaks the long-term AI theme, but it can raise the hurdle rate for investment and make investors less willing to capitalise distant cash flows at elevated multiples."

In equity markets, Lion Finance Group was the top gainer on the FTSE 100 as it posted a rise in third-quarter profit and the loan book.

Miners Antofagasta, Anglo American and Rio Tinto rallied, along with banks HSBC, Standard Chartered and Barclays.

Gold miners Fresnillo, Hochschild and Endeavour also shone as gold prices rose.

On the downside, Weir Group fell despite reporting an 8% jump in third-quarter group orders and saying it was on course to meet market expectations for the full year.

Defence stocks BAE Systems, Babcock, QinetiQ and Chemring retreated amid expectations the outcome of the US midterms would lead to lower spending on defence.

Marks & Spencer was weaker after half-year results. The retailer posted a surge in half-year profits as it rebounded from 2025's devastating cyber attack. Sales in the 26 weeks to 26 September jumped 16.2% to £9.26bn, while adjusted pre-tax profits soared to £403.2m from £184.1m a year previously.

However, on a two-year basis, profits remained below 2024/25's interim income of £413.1m, as strong demand for M&S's food offering failed to offset weaker conditions in clothing.

Smith & Nephew lost ground as the medical technology group cut its full-year guidance due to weaker-than-expected growth in its US Orthopaedics business. The company now expects underlying revenue growth of around 3%, down from 4% previously, while trading profit growth guidance was cut to 4% from 8%.

The downgrade came as S&N reported a 3.4% increase in third-quarter revenues to $1.55bn, driven by strong demand in Sports Medicine and an improved performance in Advanced Wound Management.

Trainline tumbled as it backed its full-year guidance but posted flat first-half ticket sales and a dip in group revenue.

Market Movers

FTSE 100 (UKX) 10,652.33 0.13%

FTSE 250 (MCX) 24,644.88 -0.12%

techMARK (TASX) 6,230.87 -1.01%

FTSE 100 - Risers

Lion Finance Group (BGEO) 12,640.00p 4.62%

Fresnillo (FRES) 2,380.00p 4.07%

HSBC Holdings (HSBA) 1,293.80p 3.02%

Anglo American (AAL) 3,818.00p 2.85%

Antofagasta (ANTO) 3,223.00p 2.68%

Standard Chartered (STAN) 2,095.00p 2.19%

Barclays (BARC) 427.50p 2.03%

Rio Tinto (RIO) 6,184.00p 1.92%

Lloyds Banking Group (LLOY) 94.80p 1.62%

NATWEST GROUP (NWG) 588.00p 1.62%

FTSE 100 - Fallers

Weir (WEIR) 2,496.00p -4.57%

BAE Systems (BA.) 1,978.50p -4.39%

Smith & Nephew (SN.) 1,087.50p -2.10%

Coca-Cola HBC AG (CDI) (CCH) 4,700.00p -2.00%

Babcock International Group (BAB) 1,018.50p -1.97%

Marks & Spencer Group (MKS) 410.50p -1.74%

London Stock Exchange Group (LSEG) 9,308.00p -1.54%

Convatec Group (CTEC) 240.00p -1.48%

Rentokil Initial (RTO) 350.00p -1.27%

Autotrader Group (AUTO) 538.80p -1.21%

FTSE 250 - Risers

Ceres Power Holdings (CWR) 293.20p 6.45%

Hochschild Mining (HOC) 450.80p 4.32%

Endeavour Mining (EDV) 3,687.00p 3.54%

Pan African Resources (PAF) 107.50p 2.97%

Raspberry PI Holdings (RPI) 530.25p 2.45%

Playtech (PTEC) 370.40p 2.43%

TBC Bank Group (TBCG) 4,744.00p 2.29%

Amaroq Ltd. Npv (DI) (AMRQ) 99.40p 1.84%

Watches of Switzerland Group (WOSG) 769.00p 1.72%

BlackRock World Mining Trust (BRWM) 855.00p 1.67%

FTSE 250 - Fallers

Trainline (TRN) 200.40p -7.32%

QinetiQ Group (QQ.) 530.50p -3.73%

Diversified Energy Company (DI) (DEC) 1,022.00p -3.20%

Serco Group (SRP) 285.80p -3.15%

Dunelm Group (DNLM) 871.00p -2.74%

Hays (HAS) 59.60p -2.65%

Avon Technologies (AVON) 2,440.00p -2.59%

Chemring Group (CHG) 547.00p -2.41%

Edinburgh Worldwide Inv Trust (EWI) 250.50p -2.34%

Michael Page (PAGE) 211.60p -2.13%