- FTSE moves higher at the open.
- UK inflation comes in lower than forecast.
- Reckitt delivers better-than-expected Q3 sales growth.
- Gold prices stabilise after a sharp drop yesterday.
- Oil prices continue to rise from near multi-year lows.
- Barclays quietly outperforming amid motor finance headlines.
- Netflix shares slide despite strong underlying performance
Aarin Chiekrie, equity analyst, Hargreaves Lansdown:
“The FTSE 100 opened up around half a percentage point this morning, buoyed by September’s UK annual inflation print of 3.8% coming in below market expectations of 4.0%. This month’s figure was unchanged from the previous two, as rising transportation costs offset easing pressures on food and non-alcoholic beverages. While inflation has moderated significantly since its post-pandemic highs, it remains nearly double the Bank of England’s target rate of 2%, limiting its ability to push through further rate cuts for fears of reigniting inflation. As a result, markets are only forecasting two more rate cuts by the end of 2026.
Consumer goods company Reckitt delivered an impressive third-quarter trading update this morning. Core like-for-like sales growth of 6.7% was well ahead of market forecasts, with the beat driven by impressive growth in emerging markets. The group’s portfolio has been streamlined in recent years, but there’s something to be said for focusing on strong brands, with household names like Dettol, Durex, and Vanish all continuing to impress. The only slight disappointment was that full-year guidance wasn’t raised, but with such a strong start to the second half, full-year targets look well within reach.
Gold prices have stabilised at around $4,120 per ounce this morning, after the sharpest drop since 2021 saw gold down 5% in yesterday’s session. The downward pressure came from traders locking in gains from the recent record-breaking rallies and hopes of easing US-China tensions dented gold’s safe-haven appeal. Still, gold remains up around 60% year-to-date.
Brent Crude prices have continued their upward march from near multi-year lows, moving 1.7% higher to around $62.4 per barrel this morning. The uplift comes amid renewed supply-side fears after reports that the planned Trump-Putin summit has been postponed. Moscow’s refusal to agree to a ceasefire in Ukraine is sparking fears that tensions are rising and sanction-related disruptions could tighten near-term supply.
With more updates on Barclays and Netflix, here’s my colleague Matt Britzman.”
Matt Britzman, senior equity analyst, Hargreaves Lansdown:
“Barclays’ latest results show a bank quietly outperforming despite headline noise. The extra charge tied to motor finance grabbed attention, but investors had largely priced that in already, with shares underperforming in recent weeks. Strip out that provision and profits were 13% ahead of expectations, helped by revenue growth that beat forecasts by 2%, driven mainly by strong US card spending.
Guidance was lifted – though mostly to match consensus – and a fresh £500 million buyback underlines confidence in the bank’s capital strength. Investment banking edged past estimates but lacked the big gains seen at US rivals, leaving Barclays leaning on its diversified model to deliver steady progress without any major fireworks.
Netflix shares are sliding after hours, but the headline miss masks a robust underlying story. This was a solid quarter once you strip out a one-off $619 million Brazilian tax charge that dented profit. Revenue grew 17% year-on-year, supported by pricing, subscriber gains, and a record quarter for advertising sales, while adjusted margins beat expectations – clear evidence the model is scaling.
Management struck an upbeat tone on ads, citing improving engagement and fill rates, and reiterated that ad revenue is on track to more than double in 2025, helped by the full rollout of its in-house ad tech stack. With engagement at record highs and a blockbuster content slate ahead, Netflix looks well-positioned to turn advertising into a meaningful growth engine alongside subscriptions.”
