- UK markets mirror Wall Street’s risk off tone
- Vet group CVS is seeing strong momentum
- US markets flipped negative into last night’s close
- Gold slides, alongside riskier options like Bitcoin
- Oil extends recent losses
- Imperial Brands sees some stability
Matt Britzman, senior equity analyst, Hargreaves Lansdown:
“The FTSE 100 opened sharply lower, as European markets mirrored Wall Street’s risk-off tone, with investors trimming exposure ahead of a heavy week of macro and earnings catalysts. Profit-taking dominated early trade, as sentiment cooled across global equities.
As one of the UK’s leading veterinary care providers, CVS delivered an update that reinforces the strength of pet healthcare demand and its own growth strategy. The group continues to build momentum, supported by steady organic growth and a disciplined investment approach spanning acquisitions, practice upgrades, and technology enhancements. While technical factors around its planned main market listing, plus an ongoing investigation into the vet sector, have weighed on near-term sentiment, the long-term story looks healthy.
The S&P 500’s Monday winning streak finally broke after starting the previous 10 weeks on the front foot, a rare run seen only three times in history. Stocks drifted lower into the close, as traders shifted to a cautious stance ahead of key catalysts – Nvidia earnings tomorrow evening and the delayed September jobs report on Thursday. With AI optimism colliding with uncertainty over the Fed’s next move, pre-event positioning kept risk appetite in check. Longer term investors can stick to their guns, pullbacks are never fun but are often healthy, especially in a market that’s showing signs of frothiness.
Gold extended its slide, underscoring a growing correlation with risk assets as it fell in tandem with equities and even speculative plays like Bitcoin, now below $90,000 for the first time in six months, as markets reassess rate cut hopes. Traditionally a safe haven, gold’s new found inability to decouple from other asset classes could tarnish its defensive role heading into year-end.
Oil prices traded lower this morning, extending losses as fears of oversupply overshadow looming US sanctions on Russian oil majors. With OPEC and non-OPEC producers ramping up output against a backdrop of slowing demand, sentiment remains firmly bearish heading into 2026. Geopolitical flashpoints, from tanker seizures in Gulf waters to unrest in Sudan, could inject volatility, but for now, oversupply dynamics continue to dominate the narrative.”
Derren Nathan, head of equity research, Hargreaves Lansdown:
“Imperial Brands has seen signs of a slowdown in smokers quitting traditional cigarette names like Lambert & Butler. Tobacco volume declines moderated to 1.7%, with strong pricing and double-digit sales of newer product lines like vapes and oral pouches driving revenue growth of 4.1%.
More of the same is expected in the current financial year with low single-digit revenue growth guidance for tobacco, and a double-digit outlook for next-generation products. Operating profit is expected to grow 3-5% in line with medium-term goals. While there’s still some work to do to prove Imperial’s challenger status in next generation products, it’s establishing a reliable track record for generous payouts to shareholders, having distributed £10 billion over the last five years, and looks well placed to maintain its distribution yield (dividends and buybacks) at over 10%.”
