FTSE 100 Live: FTSE 100 Slips as Trade Deficit Hits Record; PayPoint Jumps on Royal Mail Tie-Up

FTSE 100 opened on Tuesday on a softer note, slipping 9.63 points to 9290.21. Energy stocks were under pressure as Brent crude extended its decline, dragging BP down £3.6 to £431. Other notable blue-chip fallers included AstraZeneca, Burberry, and BT Group, each down about 1%.

On the upside, GSK climbed £13 to £1531 and Rolls-Royce advanced £10.5 to £1174, helping limit losses for the index.

PayPoint surged 6% to £716 after International Distribution Services (IDS), parent of Royal Mail, acquired a 49% stake in Collect+ for £43.9 million. 

The deal will rebrand about 8000 convenience stores as Royal Mail Shops, marking the first time postage can be purchased over the counter. PayPoint also announced a special dividend of £50 per share following the investment.

Market Movers: Mixed Corporate Signals

Fashion retailer ASOS slumped £28 to £265 after warning that full-year earnings will land at the lower end of its £130 million-£150 million guidance. 

While adjusted earnings rose over 60% year-on-year, revenues fell short of consensus, with management admitting consumer demand remains weak despite higher margins. Analysts at Deutsche Bank reiterated a buy rating but flagged concerns over customer re-engagement.

Meanwhile, Close Brothers disappointed investors with a £122.4 million pre-tax loss for the year to July, weighed down by £165 million in provisions for historic motor finance commission claims. Shares dropped 5% as guidance for reduced net interest margins further dented sentiment.

AG Barr delivered a fizzling update with a 41% rise in half-year profits, Smith & Nephew confirmed its finance chief will relocate to the US, and Legal & General announced changes to its finance leadership team.

Economic Backdrop

The weak open came against a backdrop of worsening trade figures. The Office for National Statistics (ONS) reported the UK’s goods trade deficit widened to a record £56.6 billion in Q2, following Donald Trump’s tariff-led trade disruptions. 

Exports excluding precious metals fell £6.5 billion to £93.6 billion, while imports dipped slightly to £150.2 billion. The ONS said declines were concentrated in semi-manufactured goods, finished manufactured goods, and oil.

Meanwhile, GDP data confirmed the UK economy expanded 0.3% in Q2, slower than the 0.7% growth in the prior quarter. Year-on-year growth was revised upward to 1.4% from 1.2%, but household consumption showed little momentum, reflecting cost-of-living pressures.

Also Read: US Stock Market Today: S&P 500 rises 0.2%, NASDAQ jumps 0.5%, Dow Jones slips 0.1%, US Dollar falls 0.3%, Gold surges 1.9%

Commodities and Global Markets

Brent crude extended its retreat, slipping another 0.4% to $66.80 a barrel, as speculation mounted that Opec+ members could raise production quotas. Gold prices, by contrast, advanced 1% to a record $3869 an ounce on safe-haven demand.

On Wall Street, the Dow Jones closed 0.1% higher, with the S&P 500 up 0.2% and the Nasdaq rising 0.5%, led by a 2% jump in NVIDIA.