15th Jul 2025 09:00
(Alliance News) - European equities made a mixed start on Tuesday, with the FTSE 100 spiking above the 9,000 point mark for the first time.
The FTSE 100 index traded 6.24 points higher, up 0.1%, at 9,004.30. Almost immediately after the opening bell, it topped 9,000 points for the first time in its 41-year history, peaking at 9,016.98 in early dealings. So far this year, it is up 10%.
The FTSE 250 was up 13.40 points, 0.1%, at 21,738.17, and the AIM All-Share added 2.86 points, 0.4%, at 776.91.
The Cboe UK 100 was up 0.1% at 898.39, the Cboe UK 250 was also up 0.1% at 19,169.73, and the Cboe Small Companies edged up to 17,438.99.
Shining on the FTSE 100 in early trade on Tuesday was Experian, up 3.7%. It left its financial outlook unchanged on the back of a "strong" first quarter.
The provider of consumer credit score checking, fraud detection and credit application processing said revenue in the quarter to June 30 rose 12% on-year. At constant currency, growth was also 12%. Organic growth was 8% at constant currency.
The strongest organic revenue came in North America, at 9%. In Latin America, organic revenue growth was 5%, while in the Europe, the Middle East & Africa and Asia Pacific grouping, it 7% higher. In the UK & Ireland division, it edged up 1%.
On the decline, Barratt Redrow slumped 10%. It reported a "solid" full-year performance and it predicts profit in line with market expectations, though home completions fell short of its guidance.
The housebuilder reported "fewer international and investor completions than expected" in its London business.
ConvaTec gave back 3.8%. The medical products and technologies company warned of a possible 1% to 2% hit to group revenue should a draft payment proposal in the US healthcare sector come into effect.
The US Centers for Medicare & Medicaid Services announced Monday it would reduce "Medicare spending waste" in the skin substitutes market, which includes materials used to cover wounds.
"Medicare spending on skin substitutes has had unprecedented growth, rising from USD256 million in 2019 to over USD10 billion in 2024, according to Medicare Part B claims data. This dramatic spending increase is largely attributed to abusive pricing practices in the sector, including the use of products with limited evidence of clinical value," CMS said.
Proposals by the CMS are expected to cut spending in the skin substitutes market by "nearly 90%".
ConvaTec said: "Convatec supports CMS in seeking to remove excess cost and promote responsible market practices. However, the proposed reimbursement rate risks limiting patient choice, product quality and availability in the segment. We will engage fully in the public comment process which closes on 12 September 2025. We do not expect any changes before 2026 at the earliest.
"Convatec's InnovaMatrix is a highly effective product with significant health benefits to patients and healthcare professionals, strong user feedback and clinical evidence. We are committed to this segment and are on track to publish our randomised controlled trials in 2026. We are also continuing to develop sales across a range of indications, both within and outside the United States."
In European equities on Tuesday, the CAC 40 in Paris was up 0.2%, while the DAX 40 in Frankfurt was 0.1% higher. Mainland European stocks recovered some lost ground after tariff worries hit trade on Monday.
Tuesday's economic calendar has a US inflation reading at 1330 BST.
"Will this year's increase in US tariffs finally start to show up in headline inflation and push back against calls for early Fed cuts? That is our forecast for the third quarter, although an on-consensus 0.3% MoM print today may not move markets too much," ING analysts commented.
The pound was quoted at USD1.3445 early Tuesday, flat from USD1.3446 at the time of the London equities close on Monday. The euro was at USD1.1691, up against USD1.1683. Against the yen, the dollar rose to JPY147.74 from JPY147.52.
UK firms will be able to raise cash and list on London stock markets more quickly and easily due to plans to tear up regulations.
The financial watchdog confirmed it will cut red tape in the UK's capital markets amid the chancellor's push to drive growth in the sector through stripping back restrictions.
It comes ahead of Rachel Reeves' Mansion House speech to financial bosses, where she is expected to launch a series "Leeds Reforms" aimed at the financial sector, focusing on a strategy of less onerous rules for firms rather than reduced risk.
The Bank of England has said it will implement rules which will make it easier for mid-sized banks to compete in the mortgage market and simplify restrictions for smaller finance firms.
It came as the central bank said it will push ahead with the majority of new capital rules for British banks at the start of 2027 but will delay part of the proposals.
The bank said its Prudential Regulation Authority has pushed back the start of a new internal model approach for considering risk in the market by a year to January 1, 2028.
In China on Tuesday, the Shanghai Composite was down 0.4%. The Hang Seng Index in Hong Kong was up 1.2%. In Tokyo, the Nikkei 225 was up 0.6%, while Sydney's S&P/ASX 200 was 0.7% higher.
China's economy grew faster than expected in the second quarter of 2025. According to preliminary estimates from the National Bureau of Statistics of China, the country's gross domestic product increased 5.2% year-on-year in the second quarter of 2025, slowing from a 5.4% rise in the previous quarter. However, the latest figure exceeded the consensus forecast of 5.1% growth, as cited by FXStreet.
The yield on the US 10-year Treasury was at 4.43%, narrowing from 4.44%, where it stood at the time of the closing bell in London on Monday. The yield on the 30-year was at 4.97% against 4.98%.
A barrel of Brent fell to USD68.64 from USD69.57. Gold rose to USD3,361.73 an ounce from USD3,347.47.
Back in London, B&M European Value Retail plunged 11%. It reported an increase in first quarter sales, with its performance in the UK supported by warmer weather. Revenue in the first quarter to June 28 rose 4.4% on-year to GBP1.41 billion. In the UK alone, revenue rose 4.7% to GBP1.13 billion, while in France, it increased 7.6% to GBP136 million. At Heron Foods, it fell 0.4% to GBP138 million.
UK like-for-like sales rose 1.3%, "driven by a good performance in April from our general merchandise outdoor ranges assisted by drier weather and Easter timing," the variety goods discount retailer said.
Deutsche Bank analysts commented: "B&M has managed to disappoint again with UK LFL +1.3%, which is below the investor bar of 2-3%."
B&M shares are down roughly 50% over the past 12 months.
Elsewhere in London, Sosandar slumped 20% as it warned of a below consensus financial performance. The women's fashion brand is taking the "prudent view" of changing its guidance in light of a cyberattack at Marks & Spencer. Sosandar products are available on the M&S online shop.
It now expects revenue for the year to March 31 of GBP43.6 million and an adjusted pretax profit of GBP400,000. It believes market expectations stand at GBP46.2 million for revenue and GBP1.5 million for adjusted pretax profit.
In New York on Monday, the Dow Jones Industrial Average rose 0.2%, the S&P 500 added 0.1% and the Nasdaq Composite rose 0.3%.
By Eric Cunha, Alliance News news editor
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