7th Oct 2025 07:56
(Alliance News) - The FTSE 100 was called to open lower on Tuesday, following news that in September the average UK house price unexpectedly edged down from August, while the annual price growth in September was the slowest since April 2024.
"In the UK, meanwhile, the upcoming budget has investors so uneasy that sterling doesn't even look like a safe bet," said Swissquote's Ipek Ozkardeskaya. "Capital continues to flow into traditional safe havens — gold, silver, and even Bitcoin. A further weakness in the US dollar — which remains the base case scenario as long as the government stays shut — should directly support these assets."
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called down 4.8 points, 0.1%, at 9,474.34
GBP: lower at USD1.3448 (USD1.3471 at previous London equities close)
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ECONOMICS
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The average UK house price unexpectedly edged lower on a monthly basis, Halifax data shows. For September, the average price was GBP298,184, down 0.3% from August but up 1.3% from September 2024. The changes were in opposition to FXStreet-cited consensus, which expected a 0.2% on-month increase and a 2.2% rise annually. "This slight monthly dip in house prices reflects a housing market that has remained broadly stable," commented Halifax Head of Mortgages Amanda Bryden, who noted that September's annual house price growth was the slowest since April 2024. "It's also important to remember that prices vary widely depending on characteristics like location and property type." She added: "While affordability remains a challenge, a relatively lower mortgage rate environment and steady wage growth have helped support buyer confidence. Although the broader economic outlook remains uncertain, with the affordability picture gradually improving, we continue to expect modest growth through the remainder of the year."
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BROKER RATINGS
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Jefferies cuts Mondi price target to 1,400 (1,700) pence - 'buy'
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Deutsche Bank research cuts Aston Martin price target to 85 (90) pence - 'hold'
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Berenberg cuts Liontrust Asset Management target to 340 (365) pence - 'hold'
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COMPANIES - FTSE 100
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Shell released an update to its third-quarter outlook. It expects Integrated Gas production between 910,000 and 950,000 barrels of oil equivalent per day compared with 913,000 in the second quarter. Notably, Shell says it expects trading & optimisation at Integrated Gas to be "significantly higher" in the third quarter than in the second quarter. Upstream production is forecast at 1.8 million to 1.9 million barrels of oil equivalent per day, up from 1.7 million in Q2. For Corporate adjusted earnings, it expects a USD500 million to USD300 million loss, against a USD500 million loss in the second quarter.
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Imperial Brands said it is on track to deliver full-year guidance for 2025, "underpinned by growth in both tobacco and NGP [Next Generation Products]". It said it expects market share gains in the US, Germany and Australia, to broadly offset declines in Spain and the UK. It expects to deliver high single-digit constant currency adjusted earnings per share growth for the full year, supported by growth in adjusted operating profit and the ongoing share buyback programme. Imperial Brands also announced a GBP1.45 billion share buyback for 2026, and expects to complete it no later than October 28.
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COMPANIES - FTSE 250
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PRS REIT reported GBP66.5 million in revenue for the year ended June 30, up 14% from GBP58.2 million the year before. Net rental income rose 13% to GBP53.3 million. Pretax profit however decreased to GBP77.0 million from GBP93.7 million. Total dividends for the year rose to 4.3 pence per share, from 4.0p, and PRS is targeting at least 4.5p per share for the current financial year. PRS said trading in the first quarter remained strong and that prospects "remain very positive", with an update on its strategic review and formal sale process "in due course". "High-quality, new rental homes remain undersupplied in the UK and we expect our portfolio to continue to perform very well," Chair Geeta Nanda said.
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OTHER COMPANIES
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CVS reported that continuing revenue for the year ended June 30 rose 5.4% on-year to GBP673.2 million from GBP638.7 million. like for like sales growth slowed to 0.2% from 2.9%. Continuing pretax profit decreased 7.4%, to GBP32.6 million from GBP35.2 million, "mainly due to an increase in finance expense and depreciation, following an increase in acquisitions and continued disciplined capital investment in recent years, in line with our growth strategy". The board recommends a final dividend of 8.5p per share, up from 8.0p the year before. Going forward, CVS said the current year "is off to a strong start" and that it remains confident in returning to delivering LFL organic growth between 4% and 8% in the medium-term future. It "continues to expect to perform in-line with market expectations" for the current year.
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By Emma Curzon, Alliance News reporter
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