24th Sep 2026 09:15
(Alliance News) - Stock prices in London opened mixed on Thursday, as a global bond sell-off deepened amid concerns over US inflation and the prospect of further interest rate hikes.
Investors also awaited for talks between US President Donald Trump and Chinese President Xi Jinping.
The FTSE 100 index opened up 6.76 points, 0.1%, at 10,712.02. The FTSE 250 was down 83.40 points, 0.3%, at 24,278.18, and the AIM all-share was down 3.57 points, 0.5%, at 789.87.
The Cboe UK 100 was down 0.1% at 1,064.55, the Cboe UK 250 was down 0.3% at 21,076.66, and the Cboe small companies was down 0.2% at 18,740.33.
In European equities on Thursday, the CAC 40 in Paris was down 0.2%.
The DAX 40 in Frankfurt was down 0.1%.
The Kiel Institute for the World Economy said leading economic research institutes expect Germany's gross domestic product to grow by 1.3% in 2026, up sharply from a prior guidance of 0.6%. For 2027, they anticipate German economic growth of 1.1%, higher than previous guidance of 0.9%.
A global bond sell-off deepened as investors grew more concerned about inflation and signs that the US economy may be running too hot.
Government borrowing costs jumped on Wednesday after a stronger-than-expected S&P Global survey showed US business activity growing at its fastest pace in five years, alongside a surge in costs.
The data prompted investors to reassess the outlook for US interest rates, amid concerns that persistent inflationary pressure could prompt the Federal Reserve to tighten monetary policy further.
The yield on the US 10-year Treasury was quoted at 5.13% on Thursday morning, widening from 5.08% late on Wednesday. The yield on the US 30-year Treasury was quoted at 5.42%, widening from 5.38%.
UK government bonds also weakened in early trade. The yield on the 10-year gilt rose 2 basis points to 5.34%, approaching the 19-year high reached last week, while the 30-year gilt yield climbed 2 basis points to 5.82%.
Meanwhile, the UK Treasury is considering accepting a smaller fiscal buffer at next month's budget in an effort to limit tax rises and spending cuts, the Financial Times reported.
The newspaper said the Treasury and Number 10 are discussing whether Chancellor John Healey could target less headroom against the government's fiscal rules than the GBP23.6 billion forecast by the Office for Budget Responsibility in March.
Gilt investors surveyed by the FT suggested the buffer could fall to around GBP14 billion without triggering a significant market sell-off, although some argued that headroom below GBP20 billion could undermine confidence.
The pound was quoted at USD1.3248 early Thursday, lower than USD1.3254 at the London equities close on Wednesday. Against the euro, sterling fell to EUR1.1622 from EUR1.1636 a day prior.
The euro traded at USD1.11394 early Thursday, higher than USD1.1391 late Wednesday. Against the yen, the dollar was quoted at JPY158.08 versus JPY158.39.
On the FTSE 100, British American Tobacco rose 2.1% and JD Sports Fashion gained 1.9%.
Halma edged up 0.1% after raising its adjusted Ebit margin guidance for the financial year ending March 2027 following what it described as strong, broad-based growth in the first half.
The Amersham, England-based safety products manufacturer now expects an adjusted Ebit margin of between 23.5% and 24.0%, up from previous guidance of around 22.7%.
Halma noted that the recent appreciation of sterling against the dollar and euro, if maintained, is expected to have a negative currency translation effect on its results.
At the bottom of the blue-chip index, Standard Life fell 3.9% as its shares traded ex-dividend.
Kingfisher lost 2.4% after Investec cut the home improvement retailer to 'hold' from 'buy', although it raised its price target to 355 pence from 340p.
Computacenter fell 1.6% as its shares also traded ex-dividend.
On the FTSE 250, Vistry Group tumbled 7.5% after swinging to a substantial first-half loss and outlining plans to become a smaller and more focused business.
The housebuilder reported a pretax loss of GBP661.3 million for the six months ended June 30, compared with a profit of GBP40.9 million a year earlier, as revenue fell 13% to GBP1.42 billion from GBP1.64 billion.
Vistry said its GBP3.30 billion forward order book leaves it 91% forward sold for financial 2026, although open-market conditions became more challenging over the summer amid lower customer confidence, affordability constraints and wider economic uncertainty.
Following a review by Chief Executive Adam Daniels, Vistry plans to target around 12,000 annual completions over the medium term and reduce the number of operating regions.
AO World fell 6.3% despite saying it was heading into peak trading with "confidence and momentum".
CVS Group fell 5.1% after reporting pretax profit of GBP32.0 million for the financial year, down 1.8% from GBP32.6 million, despite revenue rising 5.9% to GBP712.8 million from GBP673.2 million.
The veterinary services provider said financial 2027 had got off to a "solid start" and expects results in line with market expectations, with consensus for adjusted Ebitda of GBP149.0 million to GBP151.7 million. It added that the search for a new chief executive is making good progress.
At the top of the FTSE 250, Raspberry Pi Holdings jumped 15% after reporting record first-half revenue and profit.
Revenue surged 90% to USD256.9 million in the six months ended June 30 from USD135.5 million a year earlier, while pretax profit more than tripled to USD19.6 million from USD6.2 million.
Raspberry Pi highlighted particularly strong demand from the smart home and aerospace and defence sectors, while strategic memory inventory helped maintain product availability amid significant supply-chain disruption.
While the "exceptional" unit economics achieved in the first half have moderated, Raspberry Pi now expects full-year Ebitda to be ahead of market consensus and sees rapid growth in unit shipments continuing into 2027 and beyond.
Brent oil was trading at USD103.81 a barrel early Thursday, higher than USD102.74 late Wednesday.
Bond investors were also keeping an eye on oil prices, with Brent remaining above USD100 a barrel after briefly falling below that level on Monday, Tuesday and Wednesday.
In the US on Wednesday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.7%, the S&P 500 down 0.9% and the Nasdaq Composite down 1.1%.
Meanwhile, Trump will host Xi at the White House on Thursday for talks aimed at maintaining the fragile relationship between the world's two largest economies.
Trump personally greeted Xi on the tarmac following his arrival on Wednesday, the first time in more than six decades that a US president has welcomed a foreign political leader at Joint Base Andrews near Washington.
Xi will receive a formal welcome at the White House, followed by a military flyover, talks in the Oval Office and a state banquet.
The two leaders face a range of contentious issues, including trade, artificial intelligence and Beijing's diplomatic and economic support for Iran.
Xi called for cooperation following his arrival, saying China and the US should be "partners rather than rivals".
In Asia on Thursday, the Nikkei 225 index in Tokyo closed up 0.8%. In China, the Shanghai Composite ended down 1.2%, while the Hang Seng index in Hong Kong ended down 0.2%. The S&P/ASX 200 in Sydney closed down 0.7%.
Gold was quoted at USD4,280.00 an ounce early Thursday, marginally lower than USD4,283.94 on Wednesday.
By Eva Castanedo, Alliance News senior economics reporter
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