London’s blue-chip FTSE 100 edged lower Wednesday as investors weighed earnings news and sector updates, while sterling weakened against the dollar.
As of 12:32 GMT, the FTSE 100 was down 0.04%. The pound fell 0.3% to $1.34. European markets were mixed, with Germany’s DAX down 0.2% and France’s CAC 40 up 0.7%.
Investor sentiment was shaped by movements in energy, mining, and retail stocks. Prudential led gainers after posting strong results, while Hochschild sank following a sharp production downgrade.
Key market movers:
- Prudential shares rose after $5 billion buyback plan.
- JD Sports extended sales declines in Q2.
- Hochschild plunged 13% on weaker output guidance.
- Boohoo gained 2.6% on Debenhams-led growth.
Ofgem Raises Energy Price Cap
U.K. households will see energy bills increase this winter after Ofgem lifted its quarterly price cap by 2% starting October.
- Average bills will rise by £2.93 per month (£35.14 annually).
- Typical monthly household bill will increase to £102, up from £100.
- The new annual cap of £1,755 remains 26.3% below the January 2023 peak.
- Higher electricity balancing costs accounted for £1.23/month of the increase.
Though a modest rise, the move highlights ongoing cost pressures. Adjusted for inflation, the cap is 0.9% lower than last year, but the decision will weigh on household budgets ahead of the colder months.
Earnings and Corporate Shifts
Several major U.K.-listed firms drove market headlines on Wednesday:
- Rio Tinto announced a restructuring into three divisions: Iron Ore (led by Matthew Holcz), Aluminium & Lithium (headed by Jérôme Pécresse), and Copper (under Katie Jackson). The changes are designed to streamline operations and focus on growth assets like the Oyu Tolgoi mine.
- Prudential gained after reporting $3.29 billion in Annual Premium Equivalent, slightly beating estimates, and unveiled a plan to return $5 billion to shareholders over three years.
- JD Sports saw like-for-like sales fall 3% in Q2, with the U.K. market down 6.1%. North America and Europe posted smaller declines, while Asia Pacific rose 0.3%. First-half sales dropped 2.5% overall.
- Hochschild Mining shares sank more than 13% after cutting 2025 output forecasts from Brazil’s Mara Rosa mine. Gold production guidance was slashed to 35,000–45,000 ounces, less than half its previous forecast. Costs rose to $1,980–$2,080 per ounce, up sharply from earlier estimates.
- Boohoo reported £41.6 million EBITDA for FY25, with Debenhams GMV surging 34% to £654 million. The retailer is also exploring a possible sale of PrettyLittleThing.
- Frasers Group expanded into leisure by acquiring a minority stake in We Do Play, citing synergies with its Sports Direct business. Terms were not disclosed.