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Late market roundup: Stocks up as US-China trade talks ‘going well’

The FTSE 100 ended higher on Tuesday amid signs of progress in US-China trade negotiations, with the winning stocks including housebuilders and retailer Marks & Spencer.

The FTSE 100 index rose 20.80 points, 0.2%, to 8,853.08. It had earlier risen as high as 8,886.06.

The FTSE 250 ended up 103.55 points, 0.5%, at 21,389.46, and the AIM All-Share climbed 2.43 points, 0.3%, to 766.32.

The Cboe UK 100 ended up 0.5% at 883.55 and the Cboe UK 250 added 0.6% at 18,903.26, but the Cboe Small Companies eased 0.1% to 16,921.09.

In Paris, the CAC 40 rose 0.2%, while Frankfurt’s DAX 40 ended 0.8% lower.

In the UK, figures showed the unemployment rate rose slightly in the three months to April, as expected, while pay growth was more moderate than forecast.

The Office for National Statistics said the rate increased to 4.6% in the period from February to April, in line with FXStreet-cited consensus, from 4.5% in the first three months of 2025. The last time the jobless rate was higher was in the period from April to June 2021, at 4.7%, according to the ONS.

The ONS also said annual growth in average earnings was 5.2% for regular earnings, which exclude bonuses, and 5.3% for total earnings, which factor in bonuses.

However, regular earnings growth of 5.4% was expected, and total earnings growth of 5.5% was predicted, according to FXStreet.

Regular earnings growth eased from 5.5% in the three months to March, and total earnings growth ebbed from 5.6%.

The pound was somewhat weaker, reflecting rate cut expectations. Sterling was quoted at $1.3509 late on Tuesday afternoon in London, lower compared to $1.3556 at the equities close on Monday. The euro stood at $1.1418, little changed against $1.1419. Against the yen, the dollar rose to JP¥144.93 compared to JP¥144.42.

The data also gave a lift to rate-sensitive housebuilders, who took further encouragement from an upbeat trading statement from Bellway and a rumoured government announcement.

Bellway, up 7.9%, said it is on track for ‘strong growth in volume output and profits’ in its financial year, and it predicted average selling prices will be above previous guidance.

The housebuilder said it saw ‘robust’ trading through the spring selling period.

‘Bellway has delivered a solid trading performance, and we are on track to deliver strong growth in volume output and profits in the full financial year. We have a healthy forward order book and outlet opening programme, which will serve as a platform for further growth in FY26,’ Chief Executive Jason Honeyman said.

Volume output for the year to July 31 is now expected between 8,600 and 8,700 homes, a rise from 7,654 home in the prior financial year. In its March interim results, it predicted output of at least 8,500 homes.

The overall average selling price is now expected to be around £315,000, up from its previous guidance of £310,000 and a rise from £307,909 last year. It put the guidance hike to ‘changes in product mix’.

‘Bellway’s update should be well-received as there was a degree of caution in the market around slower trading after the stamp duty changes,’ analysts at Stifel commented.

The statement supported the housebuilding sector. On the FTSE 100, Persimmon rose 6.0%, Barratt Redrow climbed 5.6% and Taylor Wimpey advanced 4.6%.

In addition, the Financial Times reported that Chancellor Rachel Reeves has drawn up plans for a housing bank, to be announced as early as Wednesday’s spending review, alongside a potential long-term funding settlement for affordable homes of up to £25 billion.

The plans would enable Homes England, the government’s housing agency, to more easily deliver cheaper financing to housebuilders by redesignating it as a public financial institution, according to FT sources.

Analysts at RBC Capital Markets said this would provide ‘a welcome lift to the sector’.

In New York, the Dow Jones Industrial Average was up 0.1%, the S&P 500 was 0.3% higher, and the Nasdaq Composite 0.2% to the good at the time of the closing bell in London.

The yield on the US 10-year Treasury was quoted at 4.48%, narrowing from 4.49% on Monday. The yield on the US 30-year Treasury was quoted at 4.95%, narrowing from 4.96%.

Negotiations between US and Chinese officials in London stretched into a second day, with Washington sending positive signals that the two superpowers might resolve a bitter trade war dragging on the global economy.

The talks were ‘going well,’ US Commerce Secretary Howard Lutnick told Bloomberg Television, adding he expected Tuesday’s discussions to last ‘all day’.

US President Donald Trump told reporters at the White House on Monday: ‘We are doing well with China. China’s not easy.’

He added: ‘I’m only getting good reports.’

Back in London, Marks & Spencer rose 3.8% after it reopened its website to shoppers, having been forced to halt internet orders in April following a damaging cyber attack.

The retail giant said shoppers are now able to buy a selection of its best-selling fashion ranges and new products for home delivery to England, Scotland and Wales.

Rival Next, a perceived beneficiary from the outage at M&S, fell back 2.7%.

On the FTSE 250, Hochschild Mining plunged 23% after the London-based gold and silver miner in Argentina, Brazil and Peru said it expects to significantly reduce production guidance at its Mara Rose site in Brazil amid ongoing delays to the project.

Hochschild Mining said it has suffered ‘contractor performance issues’, alongside unexpectedly heavy rainfall in the past few months. According to Hochschild, filtering problems and limited access to metal ore have exacerbated the impact of delayed waste removal, an issue which was carried over from previous years.

Hochschild is planning to suspend operations at Mara Rose’s processing plant for about six weeks in order to carry out repairs, but it insists that mining ‘will continue as planned’.

The biggest risers on the FTSE 100 were Persimmon, up 77.50 pence at 1,380.00p, Barratt Redrow, up 25.30p at 475.30p, Taylor Wimpey, up 5.35p at 121.70p, Marks & Spencer, up 13.60p at 373.40p and Shell, up 90.50p, at 2,595.50p.

The biggest fallers on the FTSE 100 were Standard Chartered, down 34.00p at 1,148.00p, Barclays, down 9.10p at 323.35p, Next, down 345.00p at 12,495.00p, BAE Systems, down 50.50p at 1,872.00p, and Fresnillo, down 34.00p at 1,340.00p.

Brent oil rose to $67.82 a barrel late in London on Tuesday afternoon, from $66.88 late Monday. Gold was quoted lower at $3,325.36 an ounce against $3,329.84 on Monday.

Wednesday’s global economic calendar sees a US inflation reading.

The UK corporate calendar on Wednesday has full-year results from pub operator Fuller, Smith & Turner.

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