The FTSE 100 opened 16.06 points lower at 10,806.07 as investors await fresh direction from this week’s European Central Bank interest rate decision and US inflation figures. Brent crude futures rose 1.75% to USD 98.70 per barrel. US West Texas Intermediate (WTI) advanced 2.89% to USD 94.12 per barrel.
Sterling traded at USD 1.3538 on Tuesday morning, rising from USD 1.3516 at the time of the London equities close on Monday. Versus the euro, it fell to EUR 1.1624 from EUR 1.1638.
On the upside, Computacenter climbed 4.64% to 5,860p. Auto Trader Group advanced 3.60% to 523.60p, while Antofagasta gained 1.51% to 3,957p. Croda International rose 1.50% to 3,312p, BP added 1.43% to 554.20p, and Glencore increased 1.42% to 612.40p.
On the downside, HSBC Holdings fell 1.43% to 1,556.40p. Next declined 1.16% to 15,320p, while Whitbread dropped 1.02% to 2,324p. Games Workshop Group slipped 0.71% to 18,270p, Lion Finance Group lost 0.67% to 13,420p, and AstraZeneca edged 0.60% lower to 11,970p.
Oil prices have surged, nearing the USD 100 per barrel mark. Brent crude has gained 1.75%. Oil prices have reached their highest level since July, but reports that the Iran-backed Houthis have attacked a Saudi energy plant have put fresh pressure on investors.
Earlier today, Iran threatened to roll out new sanctions on tankers attempting to travel through the Strait of Hormuz.
Computacenter has upgraded its profit forecast for the second time this year after its order backlog rose 4 times in the last six months.
The IT supplier said it expects to bring in no less than GBP 380 million in pretax profit for the year, well above the previous consensus of GBP 341 million. This came as its order backlog reached a record GBP 9.3 billion, up 323% year-on-year.
The group, which was promoted to the FTSE 100 in the June reshuffle, hiked its dividend by just shy of 15% to 27.1p.
The boss of Funding Circle has laid out plans for departure as the fintech lifted its profit forecast for the year ahead. Lisa Jacobs, who has led the firm since 2022, will step down as chief executive by ‘no later than September 2027,’ the firm confirmed on Tuesday.
It came as the fintech’s revenue jumped 50% to GBP 138 million after loan originations swelled 43% to just over GBP 1 billion. The firm said it expects profit to reach over GBP 40 million for the year, upgraded from previous expectations of GBP 35 million.
Funding Circle announced a fresh GBP 25 million buyback, which will take its total capital returned via buybacks to GBP 100 million since March 2024.
Also Read: Stock Market Update: Nifty 50 Opened 0.15% Higher, Sensex Fell 161.18 Points
In the US, Wall Street was closed on Monday for the Labor Day holiday. In Asia on Tuesday, Tokyo's Nikkei 225 fell 1.7% to 65,269.33, while China’s Shanghai Composite rose 0.2%. Hong Kong’s Hang Seng declined 0.32%, and South Korea’s Kospi declined 0.58%. In India, both the Nifty 50 and the Sensex fell by 0.54% and 0.59%, respectively.
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