London midday: Stocks flat ahead of Fed, US tech earnings; HSBC gains
By Michele Maatouk
Date: Tuesday 28 Oct 2025
(Sharecast News) - London stocks were flat by midday on Tuesday as investors eyed the latest policy announcement from the US Federal Reserve and a raft of key US tech earnings, but HSBC gained on well-received results.
The FTSE 100 was steady at 9,659.11.
Russ Mould, investment director at AJ Bell, said: "Results from some of the big names which dominate the US market will likely dictate whether the market can extend its recent momentum into November as will the Federal Reserve's latest decision on interest rates tomorrow.
"A cut is widely expected but, with most US data releases paused thanks to the shutdown in Washington, the Federal Reserve's ability to make an informed decision is impaired."
Wednesday will be a big day on the US corporate front, with quarterly earnings due from Microsoft, Meta and Alphabet.
Derren Nathan, head of equity research at Hargreaves Lansdown, noted: "Together, their shares represent around $9 trillion of global stock market value."
On home shores, the latest figures from the British Retail Consortium and NielsenIQ showed that increased competition among retailers and widespread discounting resulted in a slowdown in UK shop price inflation in October.
Shop prices were up 1.0% year-on-year in October, with growth slowing from 1.4% in September, the BRC-NIQ Shop Price Monitor showed.
Non-food prices fell by 0.4%, following a 0.1% fall in September, while food inflation eased to 3.7% from 4.2%, as a pickup in fresh food inflation to 4.3% from 4.1% was offset by a sharp drop in ambient food inflation to 2.9% from 4.2%.
"Easing global sugar prices helped to bring down prices of chocolate and confectionary, a treat for those preparing Halloween parties," said BRC chief executive Helen Dickinson. "Beyond food, discounts came early to electricals and health and beauty, as retailers started promotions ahead of Black Friday month."
Dickinson said that, ahead of the Budget announced in late-November, the government needs to relieve cost pressures on both consumers and retailers.
"Labour's promised business rates reform must deliver a meaningful cut to retailers' rates bills, and ensure that no store pays more. Rising employer National Insurance Contributions and a new packaging tax have directly contributed towards rising inflation, according to the Bank of England. Adding further taxes on retail businesses would inevitably keep inflation higher for longer," she said.
In equity markets, Airtel Africa jumped to the top of the FTSE 100 after it posted a sharp increase in half-year core earnings on the back of surging revenues and an increase in customer numbers.
HSBC was also in the black as it reported a fall in third-quarter profits as a $1.1bn legal charge weighed on the bottom line, but lifted its guidance for 2025 net interest income to $43bn "or better", from $42bn.
Russ Mould said: "Having got the bad news out of the way early, with yesterday's revelation of a provision linked to Bernard Madoff's Ponzi scheme, HSBC had some good news to deliver to investors with its third-quarter update.
"While the Madoff-linked hit saw profit come in below expectations at a headline level, on an underlying basis the business is performing well and, crucially, somewhat better than the market was expecting.
"A key metric for any bank is net interest income - the difference between what the bank pays out to savers and receives from borrowers in interest - so the boost to guidance here and double-digit quarterly growth are significant."
BAE Systems gained after it said late on Monday that it expects to recognise around £4.6bn from a UK government agreement with Turkey for the purchase of 20 Typhoon aircraft and an associated weapons and integration package.
On the downside, housebuilders Barratt Redrow and Berkeley lost ground amid reports that chancellor Rachel Reeves could announce a 1% annual levy on homes worth more than £2m in the upcoming Budget.
Bodycote slumped after JPMorgan trimmed its price target on the stock to 600p from 610p and lowered estimates.
Market Movers
FTSE 100 (UKX) 9,659.11 0.05%
FTSE 250 (MCX) 22,431.17 -0.36%
techMARK (TASX) 5,579.36 0.07%
FTSE 100 - Risers
Airtel Africa (AAF) 248.40p 7.72%
Spirax Group (SPX) 7,280.00p 3.70%
HSBC Holdings (HSBA) 1,032.80p 2.87%
Anglo American (AAL) 2,898.00p 2.33%
BAE Systems (BA.) 1,897.00p 1.80%
Standard Chartered (STAN) 1,495.00p 1.67%
Informa (INF) 966.40p 1.13%
Babcock International Group (BAB) 1,234.00p 1.06%
WPP (WPP) 365.20p 0.77%
International Consolidated Airlines Group SA (CDI) (IAG) 412.30p 0.73%
FTSE 100 - Fallers
Barratt Redrow (BTRW) 394.30p -2.33%
Sainsbury (J) (SBRY) 339.20p -2.14%
Berkeley Group Holdings (The) (BKG) 4,072.00p -1.93%
Whitbread (WTB) 3,046.00p -1.90%
BT Group (BT.A) 183.35p -1.82%
Tesco (TSCO) 450.90p -1.72%
Marks & Spencer Group (MKS) 402.10p -1.52%
NATWEST GROUP (NWG) 575.20p -1.37%
Rightmove (RMV) 683.00p -1.36%
Lloyds Banking Group (LLOY) 86.66p -1.34%
FTSE 250 - Risers
Vietnam Enterprise Investments (DI) (VEIL) 763.00p 2.42%
Quilter (QLT) 184.20p 2.05%
Syncona Limited NPV (SYNC) 102.00p 2.00%
Investec (INVP) 597.50p 1.79%
VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 480.00p 1.48%
GCP Infrastructure Investments Ltd (GCP) 75.40p 1.21%
PPHE Hotel Group Ltd (PPH) 1,408.00p 1.00%
Patria Private Equity Trust (PPET) 614.00p 0.99%
Allianz Technology Trust (ATT) 528.00p 0.76%
Lancashire Holdings Limited (LRE) 664.00p 0.76%
FTSE 250 - Fallers
Bodycote (BOY) 637.00p -4.50%
W.A.G Payment Solutions (EWG) 92.60p -3.94%
C&C Group (CDI) (CCR) 131.40p -3.38%
Genuit Group (GEN) 373.50p -2.99%
Vistry Group (VTY) 665.20p -2.89%
Carnival (CCL) 1,928.50p -2.85%
Diversified Energy Company (DEC) 989.50p -2.32%
Ithaca Energy (ITH) 203.25p -2.28%
Taylor Wimpey (TW.) 107.30p -1.83%
British Land Company (BLND) 382.80p -1.75%
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