London open: FTSE falls as oil prices rise again; US midterms eyed

(Sharecast News) - London stocks fell in early trade on Tuesday following a US tech selloff and amid rising oil prices, as investors eyed the US midterm elections. At 0825 GMT, the FTSE 100 was down 0.5% at 10,710.52, while Brent crude was up 1.7% at $106.56 a barrel and West Texas Intermediate was 1.5% higher at $97.86 following reports the US has launched strikes on Iran's Qeshm Island in the Strait of Hormuz.

On Wall Street, the Nasdaq closed 1.1% lower on Monday as tech stocks were hit once again by worries about AI spending.

Susannah Streeter, chief investment strategist at Wealth Club, said: "The US mid-term elections kick off with a fresh wave of strikes on Iran, with Trump doubling down on his foreign policy despite deep apprehension across Middle America.

"Though the strikes on Iran's Qeshm Island appear limited, it's still bullish action, and runs against the message of greater diplomacy which the administration had been pushing prior to the attacks.

"Oil prices are on the rise again, with Brent crude heading back above $106 a barrel, up around 2%. However, the gains for now appear relatively limited, with hopes still swirling that negotiations will come to fruition, and that another big escalation in the conflict will be avoided."

Streeter said investors remain "highly wary" about the high sums being poured into AI infrastructure without evidence that returns will compensate for the "eye-watering" expenditure.

As far as the midterms are concerned, tentative results will be available by Wednesday morning, but final results could take weeks.

In UK equity markets, Associated British Foods fell as it posted a sharp decline in annual profits. The Primark owner said challenging conditions hit both its grocery and retail businesses, and warned of further falls to come, with group adjusted operating profits and adjusted earnings per share in the current year to come in below 2026.

Coca-Cola Europacific Partners was also weaker despite backing its full-year guidance and posting a 6.5% increase in third-quarter revenue.

On the upside, British Gas owner Centrica was the top performer on the FTSE 100 after Jefferies upgraded the stock to 'buy' from 'hold', saying investors are overlooking visibility and growth in the retail and infrastructure division.

Hiscox rallied as the specialist insurer said group insurance contract written premiums rose 9.5% in the first nine months of the year, driven by accelerating momentum in the retail segment.

Drax surged after saying it had signed an agreement to develop a strategic partnership with Brookfield and Radiant, Brookfield's UK-headquartered AI infrastructure platform, to develop, deliver and operate an AI data centre on its power station estate in the north of England.

IWG also gained as the workspace provider hailed a strong third quarter, with revenue up 12% year-on-year.



Market Movers

FTSE 100 (UKX) 10,710.52 -0.47% FTSE 250 (MCX) 24,644.11 -0.61% techMARK (TASX) 6,299.40 -0.04%

FTSE 100 - Risers

Centrica (CNA) 153.75p 3.27% Hiscox Limited (DI) (HSX) 1,931.00p 2.87% Haleon (HLN) 328.20p 1.49% Unilever (ULVR) 4,960.50p 1.20% Smith & Nephew (SN.) 1,112.00p 0.63% SSE (SSE) 2,612.00p 0.58% National Grid (NG.) 1,260.00p 0.56% Vodafone Group (VOD) 117.50p 0.56% British American Tobacco (BATS) 4,601.00p 0.55% AstraZeneca (AZN) 13,900.00p 0.51%

FTSE 100 - Fallers

Fresnillo (FRES) 2,264.00p -3.25% Antofagasta (ANTO) 3,140.00p -3.23% Anglo American (AAL) 3,702.00p -3.14% Associated British Foods (ABF) 1,888.50p -2.42% Rolls-Royce Holdings (RR.) 1,252.40p -2.05% Diploma (DPLM) 7,135.00p -1.93% Scottish Mortgage Inv Trust (SMT) 1,485.50p -1.82% Coca-Cola Europacific Partners (DI) (CCEP) 8,395.00p -1.81% Pershing Square Holdings Ltd NPV (PSH) 3,850.00p -1.75% Weir (WEIR) 2,616.00p -1.73%

FTSE 250 - Risers

Drax Group (DRX) 875.00p 8.34% International Workplace Group (IWG) 215.20p 5.83% Oxford Biomedica (OXB) 523.00p 3.38% Baltic Classifieds Group (BCG) 2.36p 2.52% Johnson Service Group (JSG) 149.80p 2.39% Workspace Group (WKP) 353.60p 1.85% Ashoka India Equity Investment Trust (AIE) 249.00p 1.84% Savills (SVS) 1,134.00p 1.75% Breedon Group (BREE) 340.40p 1.58% Wickes Group (WIX) 245.00p 1.45%

FTSE 250 - Fallers

Bridgepoint Group (Reg S) (BPT) 400.00p -6.62% Polar Capital Technology Trust (PCT) 574.00p -3.37% Vistry Group (VTY) 275.00p -3.31% Raspberry PI Holdings (RPI) 513.75p -3.28% Allianz Technology Trust (ATT) 635.00p -3.05% CVS Group (CVSG) 1,330.00p -2.72% Volex (VLX) 552.00p -2.65% Supermarket Income Reit (SUPR) 82.70p -2.55% Diversified Energy Company (DI) (DEC) 1,020.00p -2.50% Morgan Sindall Group (MGNS) 4,082.00p -2.4