FTSE 100 Live: Index Opens 4 Points Lower at 10,493 Amid Cautious Investors’ Sentiment, Brent Rises 0.40%

The FTSE 100 opened over 4 points lower at 10,493 on July 1 amid cautious investor sentiment at the start of a new quarter, and fresh commentary from Bank of England Governor Andrew Bailey on the inflation outlook. Meanwhile, Brent crude futures rose 0.40% to $73.24 a barrel. US West Texas Intermediate (WTI) gained 0.40% to $69.78 ‌a barrel.

Gainers & Losers 

On the upside, Babcock International Group rose 3.13% to £981.60, while Sainsbury’s advanced 1.47% to £324.50. BAE Systems gained 1.44% to £1,870.50, and IG Group Holdings moved higher by 1.38% to £1,843. Melrose Industries added 1.37% to £481.40, while Tesco climbed 1.20% to £464.20.

On the downside, Associated British Foods declined 3.27% to £1,921, while Fresnillo slipped 1.79% to £2,692. Lion Finance Group fell 1.32% to £11,180, and Games Workshop moved lower by 1.20% to £21,340. Rio Tinto eased 0.77% to £7,067, while London Stock Exchange Group edged down 0.59% to £8,114.

BoE Governor Commentary  

Bank of England Governor Andrew Bailey told CNBC the Bank "would have been back at our 2.0 target around about April, May time," calling the fact that it hasn’t been "hugely frustrating." 

Asked by CNBC’s Sara Eisen if the delay was "all because of the war," Bailey replied, "I think so, yes." UK inflation stands at 2.8% and is seen rising toward 3.2% later this year on lagged energy-price effects. 

"It’s going to take longer," Bailey said of the return to target, pointing to a softening economy and soft labour market as reasons the MPC can afford patience.

BP Deputy Chief Quits

BP’s deputy chief executive Carol Howle quit her job after just months into the role, the energy giant confirmed late yesterday. HR vice president Kerry Dryburgh is also leaving after 16 years. 

Albert Manifold was infamously dismissed as chairman by the board last month, less than a year into his role over “serious concerns” about his behaviour. Manifold has hit back disputing the allegations.

NatWest Acquires Evelyn Partners 

NatWest says it expects to lift fee income by about 20%, improve returns and increase its exposure to the UK wealth market after wrapping up its £2.7 billion acquisition of Evelyn Partners yesterday. 

The lender said the deal creates the UK’s biggest private banking and wealth management business, with £127 billion of assets under management and administration as of the end of last year. 

NatWest also expects annual cost savings of about £100 million, though it has to shell out one-off costs of about £150 million to deliver them.

Topps Tiles Shares Fell 

Topps Tiles shares fell 8% in early trade after its third quarter update, where its profit target was trimmed. Revenue fell by 1.8% lower than the year prior at £75.6 million. 

It added it expects pre-tax profit to come in at around £6.5 million, “well below the already modest growth previously flagged,” according to Adam Vettese, market analyst at eToro. 

Vettese added, “The market reacted sharply to the combination of softer than expected trading and the profit warning. Although Topps continued to outperform a wider home improvement market that declined around 1.6% and digital penetration rose strongly to 23.3%, these positives were not enough to offset the earnings disappointment.”

Also Read: Stock Market Today: Sensex Jumps to 76,865 While Nifty50 Nears 23,981 as Auto Sector Leads Gains

Global Market View

In the US, Overnight, Wall Street ended its best quarter since 2020, with the Dow Jones adding 0.3% to a fresh high above 52,300, while the Nasdaq jumped 1.5% and the S&P 500 climbed 0.8%.

In Asia, South Korea’s Kospi fell 2.04% to 8,303.41. Japan’s Nikkei 225 rose 0.59% to 70,474.96 points. Taiwan’s TAIEX advanced 1.94%. India’s Nifty 50 and Sensex both rose 0.63% and 0.75%, respectively.