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The FTSE 100 index traded lower on Tuesday as retail stocks slumped following a downbeat consumer spending outlook, while Bunzl rose on a share buyback announcement. Separately, takeover drama around Wood Group added to corporate headlines.
FTSE 100 Live provides real-time updates on the UK’s top companies. The index was down 56.77 points, or 0.6%, at 9264.63, pulling back after five straight record closes last week.
A warning from Deutsche Bank on shrinking discretionary spending hit the retail sector hard. The bank downgraded Associated British Foods (AB Foods) and Wickes to “Sell” and cut Kingfisher to “Hold,” while trimming its price target on Marks & Spencer.
Investors rely on FTSE 100 Live Today to monitor daily stock movements. The bank forecasted that consumer spending power could fall to 3% in the current half, compared to 7% in the first half of 2025, as wage growth slows and unemployment fears mount.
The FTSE 100 Price reflects market performance and investor sentiment. Shares responded sharply: AB Foods tumbled 4% (£88) to £2226, Kingfisher dropped 3.5% (£9.9) to £271.3, and Marks & Spencer eased £3.9 to £354.5.
Bunzl surged 5% or £120 to £2504, after announcing it would resume its £200 million share buyback programme, paused earlier this year. The update accompanied half-year results showing a 15.4% fall in adjusted profit to £345.6 million, pressured by weak performances in North America and continental Europe.
FTSE 100 remains a key benchmark index for global financial markets. Operating profit in North America fell 14.7% to £197 million, while Europe declined 9.9% to £94.4 million.
CEO Frank van Zanten acknowledged the headwinds but pointed to early positive signs from restructuring efforts, with larger improvements expected from 2026 onward. Bunzl also confirmed acquisitions in Mexico and Spain to strengthen its global reach.
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Outside the FTSE 100, Wood Group remained in focus after confirming it was “minded to accept” a reduced takeover offer from Dubai-based Sidara. The engineering and energy services firm had initially been approached at £35 per share in April, valuing it at £242 million. Still, the latest bid stands at just £30 per share, cutting the valuation to £207.6 million.
The deadline for Sidara to make a binding offer has been extended until 5 pm Thursday. Trading in Wood Group shares is currently suspended after the stock plunged more than 70% in recent months amid ongoing financial pressures.
Bunzl continues to influence FTSE 100 performance with strong sector presence. The British Retail Consortium (BRC) reported that food inflation accelerated to 4.2%, the highest since February 2024, driven by higher prices for chocolate, butter, and eggs. Analysts warned that the uptick adds pressure to households already struggling with cost-of-living challenges.
The FTSE’s retreat followed a weaker Wall Street session on Monday, where the Dow Jones fell 0.8%, the S&P 500 slipped 0.4%, and the Nasdaq declined 0.2%, as investors digested hopes of a US rate cut in September.
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