London pre-open: Stocks to edge up; Brent crude breaches $107 a barrel

(Sharecast News) - London stocks were set to edge up at the open on Tuesday as investors mulled a rate hike by the Reserve Bank of Australia and as Brent crude breached $107 a barrel.

The FTSE 100 was called to open around 13 points higher. At 0710 BST, Brent crude was up 1.8% at $107.21 a barrel and West Texas Intermediate was 1.6% at $94.10.

Australia's Reserve Bank lifted its cash rate by 25 basis points to 4.6%, its fourth increase of 2026 and the highest level in 15 years. The move was in line with expectations.

The board said the decision was unanimous and signalled it was prepared to tighten policy further if needed to return inflation to target.

Consumer price inflation is currently 3.5%, above the RBA's 2-3% band. Policymakers said recent data had been stronger than expected and that financial conditions needed to remain restrictive to ensure price pressures ease over time.

On home shores, figures released earlier showed that shop price inflation eased in September as retailers kept prices low despite rising cost pressures.

The BRC-NIQ shop price index showed that shop price inflation fell to 1.4% year-on-year in September from 1.5% growth in August. This was above the three-month average of 1.3%.

Food inflation decreased to 2.5% following growth of 2.8% in August, while non-food inflation eased to 0.8% in September from 0.9% the month before. Fresh food inflation fell to 2.6% this month from 3% in August, while ambient food inflation eased to 2.2% from 2.5%.

Helen Dickinson, chief executive of the British Retail Consortium, said: "Shop price inflation edged down this month, with food inflation falling as competition between retailers continued to deliver value for shoppers. Promotions helped bring down meat and dairy prices, though poor harvests across Europe pushed up fruit prices and high global commodity prices kept chocolate and confectionery prices elevated. In non-food, strong discounting reduced the cost of back-to-school essentials, including books, stationery, footwear and electricals.

"Retailers have absorbed wave after wave of extra costs, but there is a limit to what businesses can shoulder. With higher business rates set to hit in April, alongside rising employment costs, energy bills and packaging taxes, the Budget is a fork in the road. The Chancellor can help keep prices down by freezing the rates rise and removing shops from the business rates surtax, or risk pushing even more costs onto consumers."

In corporate news, Irn-Bru maker AG Barr backed its full-year expectations as it posted a rise in interim profit and revenue.

In the 26 weeks to 1 August, adjusted pre-tax profit ticked up 2.6% to £36.1m on revenue of £247.4m, up 8.5% on the same period a year earlier. Barr said the rise in revenue reflects continued core brand growth and the contribution from recent acquisitions Fentimans and Frobishers.

Chief executive Euan Sutherland said: "Despite supply constraints impacting customer service in the peak summer months, our core brand portfolio performed well in the market, supported by successful rebrands, innovation and marketing. Our recent acquisitions have expanded our addressable market and investment in our manufacturing capabilities continues to significantly strengthen the business for the long term."

AstraZeneca said it will invest $2bn in US biopharma Summit Therapeutics.

Under the terms of the deal, AstraZeneca will buy newly-issued equity in the New York-listed oncology specialist, giving it a stake of around 12%. The tie-up will allow the companies to collaborate on a series of studies into their cancer treatments.

AstraZeneca said a "core pillar" of its oncology strategy was to broaden the reach of its antibody drug conjugate (ADC) portfolio.

Shares in Summit, which first announced the tie up overnight, soared 18% in extended after hours trading.

Merchant banking group Close Brothers narrowed its pretax operating loss in 2026, though adjusted operating profits also declined, as the group pushed ahead with its simplification and costcutting programme.

Close Brothers' pre-tax operating loss fell 51% to £60.3m, while adjusted operating profits dropped 17% to £120.3m amid business repositioning and softer income. Adjusted operating income slipped 6% to £642.9m.