LONDON MARKET CLOSE: FTSE 100 edges higher but US tech stocks wobble
Idag, 18:11
(Alliance News) - The FTSE 100 nudged higher on Tuesday as investors weighed the Middle East crisis and reports that OpenAI has missed internal targets for users and revenue.
The FTSE 100 closed up 11.70 points, 0.1%, at 10,332.79. The FTSE 250 ended down 180.01 points, 0.8%, at 22,399.42, and the AIM All-Share fell 8.28 points, 1.0%, at 786.90.
The Cboe UK 100 ended slightly higher at 1,029.43, the Cboe UK 250 was 0.7% lower at 19,492.51, and the Cboe Small Companies Index fell 0.3% to 17,980.91.
Oil prices climbed once more with Qatar warning of the possibility of a "frozen conflict" in the Gulf, as talks between the US and Iran for a peace deal appeared to be at a stalemate.
Brent oil traded at USD111.77 a barrel on Tuesday afternoon, higher compared to USD108.92 at the time of the equities close in London on Monday.
Aside from the Iran war, analysts reacted to news that the United Arab Emirates is quitting the Opec and Opec+ groups of major oil-producing nations next month after nearly 60 years of membership.
The UAE said its decision would help it meet growing global energy demand in the long term after recent investments to boost its production capacity.
Michael Brown at Pepperstone said the main surprise is in "its timing, as opposed to its substance."
While this is undoubtedly a "pivotal" event for the global energy market, Brown said, the near-term implications of the move are likely to be "relatively limited".
"Though the UAE have pledged to 'gradually' increase production after their departure, it goes without saying that actually doing so at present is somewhere between difficult, and impossible.
"As the US-Iran conflict continues, and the Strait of Hormuz remains impassable, the most significant issue for the crude market is not production, but actually shipping product to where it is needed. Today's announcement does not change anything on that front," he added.
Brown noted the UAE's dissatisfaction with OPEC has been "clear for some time, with the country of the belief that OPEC quotas are an unfair limit, constraining the nation's major infrastructure investment projects."
Saul Kavonic, head of energy research at MST Financial, told the BBC it was "the beginning of the end of Opec".
"With the UAE leaving, Opec loses about 15% of its capacity and one of its most compliant members," Kavonic explained.
In European equities on Tuesday, the CAC 40 in Paris ended down 0.5%, and DAX 40 in Frankfurt fell 0.3%.
In New York, the Dow Jones Industrial Average was up 0.2%, the S&P 500 was 0.8% lower, and the Nasdaq Composite declined 1.4%.
Tech stocks bore the brunt of Tuesday's falls in the US, after a Wall Street Journal report said OpenAI had missed internal targets for users and revenue, stoking fresh fears about whether massive spending on AI infrastructure can be sustained.
The WSJ said that OpenAI had missed its own goal of reaching one billion weekly active users for ChatGPT by the end of 2025 and fell short of multiple monthly revenue targets this year.
According to the report, OpenAI Chief Financial Officer Sarah Friar has privately warned company leaders that the firm might be unable to meet future computing contract obligations if revenue growth does not accelerate.
Oracle fell 3.6%, Advanced Micro Devices by 3.5%, and Nvidia by 2.1% as the report caused a ripple effect across technology stocks.
But Wedbush Securities pushed back against the report.
"Overall, we believe OpenAI has been tracking very high demand on both the consumer and enterprise front and we strongly disagree with the notion that growth is weakening. We would be buyers of AI-driven tech stocks this morning and in particular Oracle on this way overreaction to this WSJ report in our view," the broker said.
The yield on the US 10-year Treasury was 4.36% on Tuesday, widening from 4.32% on Monday. The yield on the US 30-year Treasury stretched to 4.96% from 4.93%.
The pound eased to USD1.3505 on Tuesday afternoon from USD1.3549 on Monday. Against the euro, sterling ebbed to EUR1.1534 from EUR1.1543.
The euro traded lower against the greenback, falling to USD1.1709 on Tuesday from USD1.1733 on Monday. Against the yen, the dollar was trading at JPY159.61, higher from JPY159.27.
On the FTSE 100, BP rose 1.1% after better-than-expected first-quarter results, which benefited from the surge in oil prices.
The London-based oil major said underlying replacement cost profit ballooned to USD3.20 billion in the first quarter of 2026 from USD1.38 billion the year prior, well ahead of USD2.67 billion expected by the company-compiled market consensus.
Barclays eased 0.2% as in-line results failed to energise its share price.
The London-based lender said pretax profit rose 3.3% to GBP2.81 billion in the first quarter of 2026 from GBP2.72 billion a year before, just shy of the company-compiled consensus of GBP2.83 billion.
Jefferies analyst Jonathan Pierce said the results were "solid enough" with "no fireworks".
A weaker gold price hit Fresnillo, down 2.0%, and Endeavour Mining, down 4.5%. The yellow metal traded down at USD4,579.32 an ounce on Tuesday, from USD4,677.74 at the same time on Monday.
On the FTSE 250, Telecom Plus tumbled 17% as it guided to low-end full-year profit, while SSP fell 5.5% as UBS downgraded to 'neutral' from buy', noting risks to volumes in the travel retail industry linked to the Middle East conflict are increasing.
Elsewhere, building materials firm Travis Perkins and house builder Taylor Wimpey slid 4.0% and 5.3%, respectively, as investors weighed trading updates.
The biggest risers on the FTSE 100 were DCC, up 145.00p at 5,380.00p, Airtel Africa, up 8.20p at 355.40p, Centrica, up 4.10p at 211.20p, Coca-Cola Europacific Partners, up 135.00p at 7,260.00p, and British American Tobacco, up 76.00p at 4,312.00p.
The biggest fallers on the FTSE 100 were Endeavour Mining, down 195.00p at 4,191.00p, Antofagasta, down 122.00p at 3,488.00p, Anglo American, down 111.50p at 3,520.00p, Compass Group, down 0.80p at 28.52p and Experian, down 74.00p at 2,824.00p.
Wednesday's global economic calendar has interest rate decisions in the US and Canada, German inflation data and US durable goods figures.
Wednesday's local corporate calendar has first-quarter results from pharmaceutical firms AstraZeneca and GSK, lender Lloyds Banking Group and consumer products firm Haleon.
By Jeremy Cutler, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2026 Alliance News Ltd. All Rights Reserved.
LONDON MARKET CLOSE: FTSE 100 edges higher but US tech stocks wobble
Idag, 18:11
(Alliance News) - The FTSE 100 nudged higher on Tuesday as investors weighed the Middle East crisis and reports that OpenAI has missed internal targets for users and revenue.
The FTSE 100 closed up 11.70 points, 0.1%, at 10,332.79. The FTSE 250 ended down 180.01 points, 0.8%, at 22,399.42, and the AIM All-Share fell 8.28 points, 1.0%, at 786.90.
The Cboe UK 100 ended slightly higher at 1,029.43, the Cboe UK 250 was 0.7% lower at 19,492.51, and the Cboe Small Companies Index fell 0.3% to 17,980.91.
Oil prices climbed once more with Qatar warning of the possibility of a "frozen conflict" in the Gulf, as talks between the US and Iran for a peace deal appeared to be at a stalemate.
Brent oil traded at USD111.77 a barrel on Tuesday afternoon, higher compared to USD108.92 at the time of the equities close in London on Monday.
Aside from the Iran war, analysts reacted to news that the United Arab Emirates is quitting the Opec and Opec+ groups of major oil-producing nations next month after nearly 60 years of membership.
The UAE said its decision would help it meet growing global energy demand in the long term after recent investments to boost its production capacity.
Michael Brown at Pepperstone said the main surprise is in "its timing, as opposed to its substance."
While this is undoubtedly a "pivotal" event for the global energy market, Brown said, the near-term implications of the move are likely to be "relatively limited".
"Though the UAE have pledged to 'gradually' increase production after their departure, it goes without saying that actually doing so at present is somewhere between difficult, and impossible.
"As the US-Iran conflict continues, and the Strait of Hormuz remains impassable, the most significant issue for the crude market is not production, but actually shipping product to where it is needed. Today's announcement does not change anything on that front," he added.
Brown noted the UAE's dissatisfaction with OPEC has been "clear for some time, with the country of the belief that OPEC quotas are an unfair limit, constraining the nation's major infrastructure investment projects."
Saul Kavonic, head of energy research at MST Financial, told the BBC it was "the beginning of the end of Opec".
"With the UAE leaving, Opec loses about 15% of its capacity and one of its most compliant members," Kavonic explained.
In European equities on Tuesday, the CAC 40 in Paris ended down 0.5%, and DAX 40 in Frankfurt fell 0.3%.
In New York, the Dow Jones Industrial Average was up 0.2%, the S&P 500 was 0.8% lower, and the Nasdaq Composite declined 1.4%.
Tech stocks bore the brunt of Tuesday's falls in the US, after a Wall Street Journal report said OpenAI had missed internal targets for users and revenue, stoking fresh fears about whether massive spending on AI infrastructure can be sustained.
The WSJ said that OpenAI had missed its own goal of reaching one billion weekly active users for ChatGPT by the end of 2025 and fell short of multiple monthly revenue targets this year.
According to the report, OpenAI Chief Financial Officer Sarah Friar has privately warned company leaders that the firm might be unable to meet future computing contract obligations if revenue growth does not accelerate.
Oracle fell 3.6%, Advanced Micro Devices by 3.5%, and Nvidia by 2.1% as the report caused a ripple effect across technology stocks.
But Wedbush Securities pushed back against the report.
"Overall, we believe OpenAI has been tracking very high demand on both the consumer and enterprise front and we strongly disagree with the notion that growth is weakening. We would be buyers of AI-driven tech stocks this morning and in particular Oracle on this way overreaction to this WSJ report in our view," the broker said.
The yield on the US 10-year Treasury was 4.36% on Tuesday, widening from 4.32% on Monday. The yield on the US 30-year Treasury stretched to 4.96% from 4.93%.
The pound eased to USD1.3505 on Tuesday afternoon from USD1.3549 on Monday. Against the euro, sterling ebbed to EUR1.1534 from EUR1.1543.
The euro traded lower against the greenback, falling to USD1.1709 on Tuesday from USD1.1733 on Monday. Against the yen, the dollar was trading at JPY159.61, higher from JPY159.27.
On the FTSE 100, BP rose 1.1% after better-than-expected first-quarter results, which benefited from the surge in oil prices.
The London-based oil major said underlying replacement cost profit ballooned to USD3.20 billion in the first quarter of 2026 from USD1.38 billion the year prior, well ahead of USD2.67 billion expected by the company-compiled market consensus.
Barclays eased 0.2% as in-line results failed to energise its share price.
The London-based lender said pretax profit rose 3.3% to GBP2.81 billion in the first quarter of 2026 from GBP2.72 billion a year before, just shy of the company-compiled consensus of GBP2.83 billion.
Jefferies analyst Jonathan Pierce said the results were "solid enough" with "no fireworks".
A weaker gold price hit Fresnillo, down 2.0%, and Endeavour Mining, down 4.5%. The yellow metal traded down at USD4,579.32 an ounce on Tuesday, from USD4,677.74 at the same time on Monday.
On the FTSE 250, Telecom Plus tumbled 17% as it guided to low-end full-year profit, while SSP fell 5.5% as UBS downgraded to 'neutral' from buy', noting risks to volumes in the travel retail industry linked to the Middle East conflict are increasing.
Elsewhere, building materials firm Travis Perkins and house builder Taylor Wimpey slid 4.0% and 5.3%, respectively, as investors weighed trading updates.
The biggest risers on the FTSE 100 were DCC, up 145.00p at 5,380.00p, Airtel Africa, up 8.20p at 355.40p, Centrica, up 4.10p at 211.20p, Coca-Cola Europacific Partners, up 135.00p at 7,260.00p, and British American Tobacco, up 76.00p at 4,312.00p.
The biggest fallers on the FTSE 100 were Endeavour Mining, down 195.00p at 4,191.00p, Antofagasta, down 122.00p at 3,488.00p, Anglo American, down 111.50p at 3,520.00p, Compass Group, down 0.80p at 28.52p and Experian, down 74.00p at 2,824.00p.
Wednesday's global economic calendar has interest rate decisions in the US and Canada, German inflation data and US durable goods figures.
Wednesday's local corporate calendar has first-quarter results from pharmaceutical firms AstraZeneca and GSK, lender Lloyds Banking Group and consumer products firm Haleon.
By Jeremy Cutler, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Rapporter
Analys
Rapporter
Analys
Marknadsöversikt
1 DAG %
Senast
1 mån
