London open: FTSE tips into the red as oil price tracks higher

(Sharecast News) - London stocks tipped into the red as trading got underway on Thursday, as oil prices once again tracked sharply higher and mining stocks fell back. As at 0845 BST, the FTSE 100 was down 0.72% at 10,675.43, while Brent crude rose nearly 3% at $111.55 per barrel and West Texas Intermediate rose 2% at $99.47.

Patrick Munnelly, partner, market strategy, at Tickmill Group, said: "Global financial markets adopted a defensive stance overnight as escalating Middle East geopolitical risks propelled crude prices higher, capping the recent technology-led equity rebound.

"While physical exports through the Strait of Hormuz continue to flow, direct threats to critical energy infrastructure have reignited supply disruption fears, elevating inflation risks across developed market central banks."

Susannah Streeter, chief investment strategist at Wealth Club, added: "Risk-off sentiment is returning amid high geopolitical tensions and a swirl of worries about financing the AI juggernaut. Even the more defence FTSE is feeling the heat, as concerns about the chronic energy crunch and the inflationary impact ahead weigh on the index."

The rise in crude and a slide in metal prices put miners under pressure, with Anglo American, Fresnillo, Antofagasta and Endeavour Mining all on the back foot.

Barclays reported a slightly lower-than-expected third-quarter profit on Thursday following a strong performance in equities but weakness in fixed income, as it announced a £500m share buyback. It also told the Financial Times it planned to shed around 5,000 jobs as it adopts more artificial intelligence.

In the three months to the end of September, pre-tax profit grew 12% to £2.3bn, while earnings per share were 18% higher year-on-year at 12.3p.

The return on tangible equity rose to 11.7% in Q3 from 10.6% in the same period a year earlier, and Barclays said it was on track to deliver a RoTE greater than 12% in 2026.

Chief executive C. S. Venkatakrishnan said: "With one quarter to go before the end of our original three-year plan, we have either achieved or are on track to achieve all of our 2026 group targets. We are confident in and committed to the 2028 targets that we laid out earlier in the year."

Richard Hunter, head of markets at Interactive Investor, said: "Compared to its own high standards, this update is something of a mixed bag, which is unlikely to blow away the clouds which have been hovering over the sector."

J Sainsbury's also came under pressure, despite the supermarket giant posting improved interim sales and profits and lifting annual guidance.

The chain, which is in the process of selling general retailer Argos, said underlying sales excluding fuel rose 2.6% in the 28 weeks to 12 September, to £14bn, while underlying operating profits were 3.6% stronger at £525m.

Grocery sales sparked 2.9%, at £13.2bn, driving by ongoing volume growth and lower inflation, while general merchandising and clothing sales fell 3.4% at £800m.

The chain also tweaked its full-year guidance for adjusted profits, in light of the sale of Argos - which is due to complete in early 2027 - and the first interim performance. Previous guidance of £975m to £1.075bn would be equivalent to £965m to £1.065bn once Argos's contribution was stripped out, it said, and that has now been raised to £1.025bn and £1.065bn.

Information and analytics firm Relx said trading remained strong through the first nine months of 2026, with underlying revenues up 7% and continued momentum across its higher-value analytics and decision tool businesses. The FTSE 100-listed firm also reaffirmed its full‑year outlook for another year of solid revenues, adjusted operating profits and earnings per share growth.

Market Movers

FTSE 100 (UKX) 10,679.20 -0.69% FTSE 250 (MCX) 24,216.35 -0.91% techMARK (TASX) 6,210.59 -0.11%

FTSE 100 - Risers

Rentokil Initial (RTO) 342.60p 8.87% London Stock Exchange Group (LSEG) 9,104.00p 3.90% Ithaca Energy (ITH) 298.60p 1.95% BT Group (BT.A) 208.80p 1.06% Experian (EXPN) 3,016.00p 1.00% Kingfisher (KGF) 346.60p 0.96% Unilever (ULVR) 4,865.00p 0.93% Convatec Group (CTEC) 242.40p 0.83% BP (BP.) 621.90p 0.79% Imperial Brands (IMB) 2,854.00p 0.74%

FTSE 100 - Fallers

Sainsbury (J) (SBRY) 345.20p -4.13% Anglo American (AAL) 3,692.00p -3.75% Fresnillo (FRES) 2,541.00p -3.46% Antofagasta (ANTO) 3,114.00p -3.26% Rolls-Royce Holdings (RR.) 1,285.40p -3.07% InterContinental Hotels Group (IHG) 166.20p -2.64% Standard Chartered (STAN) 2,009.00p -2.57% Rio Tinto (RIO) 6,312.00p -2.55% Scottish Mortgage Inv Trust (SMT) 1,526.00p -2.52% Glencore (GLEN) 538.50p -2.43%

FTSE 250 - Risers

Harbour Energy (HBR) 300.00p 1.90% Rathbones Group (RAT) 1,618.00p 1.63% Halfords Group (HFD) 258.00p 1.38% Sequoia Economic Infrastructure Income Fund Limited (SEQI) 82.50p 1.10% HGCapital Trust (HGT) 372.00p 1.09% Genus (GNS) 2,266.00p 0.98% RS Group (RS1) 770.00p 0.72% The Schiehallion Fund Limited NPV (MNTN) 2.23p 0.68% B&M European Value Retail (BME) 274.00p 0.66% EnQuest (ENQ) 31.90p 0.63%

FTSE 250 - Fallers

Inchcape (INCH) 634.50p -7.36% Bloomsbury Publishing (BMY) 627.00p -5.95% Pan African Resources (PAF) 111.50p -5.02% Seraphim Space Investment Trust (SSIT) 176.40p -4.75% Morgan Advanced Materials (MGAM) 252.50p -4.72% Ceres Power Holdings (CWR) 274.60p -4.41% RHI Magnesita N.V. (DI) (RHIM) 2,550.00p -4.30% Amaroq Ltd. Npv (DI) (AMRQ) 103.50p -4.17% Raspberry PI Holdings (RPI) 563.25p -4.11% Auction Technology Group (ATG) 461.00p -4.08%