Business
FTSE 100 at new peak despite fading rate cut hope
London’s FTSE 100 hit a new all-time high on Wednesday, shrugging off a hot UK inflation print and fresh falls among technology stocks on Wall Street.
The FTSE 100 index closed up 98.92 points, 1.1%, at 9,288.14.
It had earlier traded as high as 9,301.19.
The FTSE 250 ended up 52.62 points, 0.2%, at 21,885.88, but the AIM All-Share finished 3.48 points lower, 0.5%, at 759.74.
Figures from the Office for National Statistics showed UK consumer price inflation picked up to 3.8% in July from 3.6% in June, exceeding FXStreet-cited market consensus expectations of 3.7%.
On a monthly basis, consumer prices rose 0.1%, defying the consensus forecast of a 0.1% decrease but slowing from a 0.3% rise in June.
Core consumer price inflation, which excludes energy, food, alcohol and tobacco, picked up to 3.8% annually from 3.7% in June, and against consensus expectations of another 3.7% rate.
Annual service price inflation, a gauge which has been in focus in recent months, picked up to 5.0% in July from 4.7% in June, ahead of 4.8% consensus.
The ONS said that “transport, particularly air fares, made the largest upward contribution” to the July annual inflation rate, partly due to the timing of school holidays.
Barclays said the figures increase the risk that the Bank of England will hold interest rates steady for longer.
Callum McLaren-Stewart, at Citi, thinks the hurdle for a September rate cut now looks “borderline impossible” although he continues to see a cut in November as likely on the basis of fiscal contraction in the autumn budget.
But Pantheon Macroeconomics thinks sticky inflation will keep rates on hold for the rest of the year.
“The big picture remains that inflation is set to stay miles above target for the foreseeable future,” Elliott Jordan-Doak, at Pantheon, said.
Rate sensitive housebuilders bucked the upbeat mood on the FTSE 100.
Persimmon fell 0.3% and Taylor Wimpey dipped 0.5%.
In better news for the sector, average UK house prices increased by 3.7% to £269,000 in the 12 months to June, picking up from a downwardly revised 2.7% in the 12 months to May, according to ONS data.
May’s figure was revised from growth of 3.9% before, partly reflecting a change in how new build inflation is assessed.
House prices rose 3.3% in England, 2.6% in Wales, 5.9% in Scotland and by 5.5% in Northern Ireland from a year ago.
Despite the fading rate cut hopes, the pound eased to 1.3468 dollars late on Wednesday afternoon in London, compared with 1.3503 dollars at the equities close on Tuesday. The euro edged down to 1.1661 dollars, lower against 1.1669 dollars. Against the yen, the dollar was trading lower at 147.15 yen compared with 147.75 yen.
In Europe, the CAC 40 in Paris ended slightly lower, while the DAX 40 in Frankfurt closed down 0.6%.
In New York, the Dow Jones Industrial Average was up 0.1%, the S&P 500 was 0.5% lower, and the Nasdaq Composite declined 1.2%.
The yield on the US 10-year Treasury was at 4.29%, narrowed from 4.31%. The yield on the US 30-year Treasury was 4.90%, trimmed from 4.91%.
Technology stocks bore the brunt of the losses on Wall Street after a report produced by a branch of the Massachusetts Institute of Technology suggested 95% of companies are getting zero return on their investment in generative artificial intelligence.
Russ Mould, at AJ Bell, noted these findings follow hot on the heels of comments from OpenAI chief executive Sam Altman that suggested investors are “over-excited” in this area.
“For now, this looks like a mild and possibly necessary correction after an extremely strong run for this space and the companies within it. Investors will be watching closely to see if AI stocks stabilise from here or the selling continues. Nvidia’s quarterly earnings next week now look even more crucial than they already were,” Mr Mould commented.
On the FTSE 100, ConvaTec gained 5.6% as the medical products supplier started a share buyback worth up to 300 million dollars.
United Utilities firmed 3.5% as Barclays upgraded to “overweight” and set a 1,535 pence share price target.
But the Nasdaq losses on Wall Street saw Polar Capital Technology Trust and Scottish Mortgage Investment Trust – both investors in the technology sector – fall 3.2% and 1.6% respectively.
On the FTSE 250, Ithaca Energy shot up 10% after reporting a big jump in half-year profit, confirming its dividend plans, and increasing its 2025 production guidance.
The North Sea-focused oil and gas company said pre-tax profit almost tripled to 146.2 million dollars in the second quarter from 52.9 million dollars a year before, as revenue more than doubled to 746.4 million dollars from 361.6 million dollars.
Average production in the first half was 123,600 barrels of oil equivalent per day, up from 53,000 a year before. Ithaca raised its full-year guidance to between 119,000 and 125,000 boe per day from between 109,000 and 119,000.
On AIM, Fevertree Drinks slumped 9.9% as Exane BNP downgraded to “underperform” with a 740p per share price target.
Elsewhere, positive trading updates supported timber distributor James Latham and fishing tackle and equipment retailer Angling Direct, up 3.2% and 6.7% respectively.
A barrel of Brent traded at 66.70 dollars late on Wednesday afternoon, up from 66.08 dollars on Tuesday. Gold firmed to 3,341.46 dollars an ounce against 3,325.33 dollars.
The biggest risers on the FTSE 100 were ConvaTec Group, up 13 pence at 244.2p, United Utilities, up 39p at 1,159.5p, Unilever, up 148p at 4,692p, Cola Europacific Partners, up 200p at 6,840p and Imperial Brands, up 85p at 3,141p.
The biggest fallers on the FTSE 100 were Polar Capital Technology Trust, down 13 pence at 388.5p, Rolls-Royce, down 33.5p at 1,026p, easyJet, down 10.2p at 508.4p, ICG, down 38p at 2,162p and Scottish Mortgage Investment Trust, down 17p at 1,066p.
Thursday’s local corporate calendar has full-year results from recruiter Hays.
The global economic calendar on Thursday has a slew of composite PMI readings, UK public sector borrowing data, US weekly jobless claims figures and the Philadelphia Fed manufacturing index.
Contributed by Alliance News
Pritti MistryBusiness reporter, BBC News
FordThe first electric vehicles (EV) eligible for the £3,750 discount under the government’s grant scheme have been announced.
The Department for Transport confirmed Ford’s Puma Gen-E or e-Tourneo Courier would be discounted as part of plans to encourage drivers to move away from petrol and diesel vehicles.
Under the grant scheme, the discount applies to eligible car models costing up to £37,000, with the most environmentally friendly ones seeing the biggest reductions. Another 26 models have been cleared for discounts of £1,500.
Carmakers can apply for models to be eligible for grants, which are then automatically applied at the point of sale.
More vehicles are expected to be approved in the coming weeks and the DfT said the policy would bring down prices to “closely match their petrol and diesel counterparts”.
The government has pledged to ban the sale of new fully petrol or diesel cars from 2030.
But many drivers cite upfront costs as a key barrier to buying an EV and some have told the BBC that the UK needs more charging points.
According to Ford’s website, the recommended retail price (RRP) for a new Puma Gen-E starts from £29,905 while a petrol equivalent is upward of £26,060. With the reduction applied, buyers would be looking in the region of £26,155 for the EV version.
The grants to lower the cost of EVs will be funded through the £650m scheme, and will be available for three years.
There are around 1.3 million electric cars on Britain’s roads but currently only around 82,000 public charging points.
Full list of EVs eligible for the £1,500 discount
- Citroën ë-C3 and Citroën ë-C3 Aircross
- Citroën ë-C4 and Citroën ë-C4 X
- Citroën ë-C5 Aircross
- Citroën ë-Berlingo
- Cupra Born
- DS DS3
- DS N°4
- Nissan Ariya
- Nissan Micra
- Peugeot E-208
- Peugeot E-2008
- Peugeot E-308
- Peugeot E-408
- Peugeot E-Rifter
- Renault 4
- Renault 5
- Renault Alpine A290
- Renault Megane
- Renault Scenic
- Vauxhall Astra Electric
- Vauxhall Combo Life Electric
- Vauxhall Corsa Electric
- Vauxhall Frontera Electric
- Vauxhall Grandland Electric
- Vauxhall Mokka Electric
- Volkswagen ID.3
The up-front cost of EVs is higher on average than for petrol cars.
According to Autotrader, the average price of a new battery electric car was £49,790 in June 2025, based on manufacturers’ recommended prices for 148 models.
The equivalent for a petrol car was £34,225, but the average covers a broad range of prices.
Transport Secretary Heidi Alexander said the grant scheme was making it “easier and cheaper for families to make the switch to electric”.
Edmund King, president of the AA, said drivers “frequently tell us that the upfront costs of new EVs are a stumbling block to making the switch to electric”.
“It is great to see some of these more substantial £3,750 discounts coming online because for some drivers this might just bridge the financial gap to make these cars affordable.”
Business
Donald Trump tariffs: Why did Nifty50, BSE Sensex tank in trade? Top reasons stock for market fall – The Times of India
Stock market today: Nifty50 and BSE Sensex, the Indian equity benchmark indices, crashed in trade on Thursday, a day after Donald Trump’s 50% tariffs on India came into effect. While Nifty50 closed at 24,500.90, down 211 points, BSE Sensex ended at 80,080.57, down 706 points or 0.87%.The newly imposed tariffs emerged as the main factor affecting market performance, whilst investors simultaneously grappled with additional challenges, including unfavourable global market indicators and continuous withdrawal of foreign investments. These factors collectively intensified the market decline, causing the benchmark indices to fall further.The severe downturn resulted in BSE-listed companies losing Rs 4.14 lakh crore in market capitalisation, bringing the exchange’s total market value down to Rs 445.80 lakh crore.
Why did the stock market fall today? Top reasons
50% US tariffs on IndiaThe new 25% additional tariffs from Washington on Indian goods became effective on Wednesday, creating uncertainty for exporters and overall market sentiment.Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments, believes these duties will affect equities temporarily but shouldn’t cause widespread concern.“The 50% tariff imposed on India, which has already come into effect, will weigh on market sentiments in the near-term. But the market is unlikely to panic since the market will view these high tariffs as a short-term aberration which will be resolved soon,” Vijayakumar said, noting US Treasury Secretary Scott Bessant’s statement that “at the end of the day India and US will come together.”Additionally, Vijayakumar identified high valuations and poor earnings performance as ongoing issues. He expects export-focused industries to experience short-term difficulties, whilst suggesting investors consider moving towards reasonably priced domestic consumption sectors. He recommends transitioning from volatile small-cap investments to more stable large-cap consumer stocks for better risk management.FII sell-off continuesForeign institutional investors extended their selling momentum for the third consecutive session. Exchange data showed that on August 26, FIIs sold shares valued at over Rs 6,500 crore. Conversely, domestic institutional investors emerged as net buyers, investing Rs 7,060 crore.The selling pattern has affected multiple sectors. In early August, FIIs withdrew approximately Rs 31,900 crore across eight sectors, with financial and technology sectors experiencing the highest outflows. Net equity sales reached Rs 20,976 crore in the first half of the month, following July’s withdrawals and pushing the total outflows for the year to Rs 1.2 trillion.Earlier this month, Jefferies reported that foreign portfolio investor presence in India had reached its lowest level in a decade. Despite consistent domestic inflows providing support, analysts suggest that any market recovery could remain unstable.Dr. V.K. Vijayakumar of Geojit Investments emphasised the importance of domestic institutional support. “The strong pillar of support to the market is the aggressive buying by DIIs flush with funds,” he noted, explaining that domestic investments are helping balance the foreign outflows.Global markets in redAsian markets displayed weakness on Thursday as investors weighed Nvidia’s exceptional earnings against growing worries regarding the company’s business interests in China.The MSCI Asia-Pacific index, excluding Japan, fluctuated throughout the session before declining 0.2%. Similarly, US stock futures declined during extended trading hours, with S&P 500 e-minis dropping 0.2% and Nasdaq futures declining 0.4%. Despite reporting outstanding results, Nvidia’s shares retreated as uncertainties persisted over its Chinese operations amidst ongoing US-China trade tensions.Japanese markets showed volatility following news that Tokyo’s chief trade representative cancelled a planned visit to Washington, postponing discussions about a recently concluded trade agreement. The Nikkei 225 registered a 0.4% increase. In contrast, Hong Kong’s market performance weakened, with the Hang Seng Index recording a 1% decline.Market sentiment further deteriorated following US political developments, as President Donald Trump announced the removal of Federal Reserve Governor Lisa Cook. This decision raised questions about the central bank’s autonomy, although Cook has indicated her intention to legally contest the dismissal.Technicals show market weaknessTechnical indicators suggest market weakness ahead, although some strategists anticipate a potential short-term recovery.At Geojit Investments, Chief Market Strategist Anand James observed bearish conditions, identifying 24,071-23,860 as target levels. He acknowledged that the sharp 2% drop over four sessions could spark a recovery, with 24,780 and 24,870 acting as resistance points. “Inability to float above 24,630 or clear 24,900 will signal that bears continue to have the upper hand,” he said.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
Business
Stock Market Updates: Sensex Slides 700 Points, Nifty Below 24,550; IT, Realty Stocks Under Pressure
Last Updated:
Domestic equities are trading under pressure on Thursday, with export-focused stocks facing headwinds
Sensex Today.
Sensex Today: Indian equities extended losses on Thursday, August 28, as markets digested the impact of fresh 50% tariffs on US exports that came into effect a day earlier.
At 1:30 PM, the BSE Sensex was down 562 points, or 0.70%, at 80,224, while the Nifty50 fell 163 points, or 0.66%, to 24,549.
Shriram Finance, HCL Tech, Infosys, Sun Pharma, Tata Motors, TCS, Power Grid, Bharti Airtel, IndusInd Bank, ICICI Bank, Trent, Jio Financial, and M\&M led the Nifty losers. On the other hand, Titan, Adani Ports, Asian Paints, Larsen & Toubro, Eternal, and Bajaj Finance bucked the weak trend.
The new duties, among the steepest in Asia, follow India’s continued imports of Russian crude oil and have strained ties between New Delhi and Washington. Shares of export-oriented sectors such as apparel, textiles, auto parts, engineering goods, gems & jewellery, shrimp, and carpets were in focus.
In the broader markets, the Nifty Midcap and Smallcap indices shed 0.9% each. Volatility also inched up, with India VIX down 0.9%.
Sectorally, IT and Realty indices slipped over 1% each, while all major sectors ended in the red barring Consumer Durables, Metals, and Oil & Gas.
Global Cues
In contrast, most Asian benchmarks were trading higher, tracking overnight US gains before a late pullback. Japan’s Nikkei rose 0.3%, while South Korea’s benchmark gained 0.3%, leading advances on the MSCI Asia Pacific index.
Meanwhile, US futures slipped in Asian trading after chipmaker Nvidia’s sales outlook missed lofty expectations, hinting at a slowdown in AI-driven growth after years of strong momentum.
On Wednesday, the S&P 500 gained 0.24% and the Nasdaq rose 0.21%, both closing in positive territory.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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