FTSE 100 Live: Shares flattened as bond yields rise, Shein IPO blocked

• FTSE 100 falls 52 points
• Kingfisher returns to growth in first quarter
• News also from Pets at Home, Softcat, C&C and Rentokil
• Thames Water hit with Ofwat's highest ever fine  

4.59pm: FTSE closes lower

The FTSE 100 Index closed at 8,726, down 52 points or 0.6% today.

Among individual stocks, Rentokil Initial rose 1.1% after announcing the sale of its French workwear and linen business for about €410 million, intending to focus on its pest and hygiene divisions and use proceeds to reduce debt and pursue acquisitions. Kingfisher shares dropped 5.4%, disappointed by a lack of profit upgrade despite modest sales growth, while Pets At Home surged 3.4% to its highest level since November 2024 on a positive profit outlook, with Jefferies calling the company’s guidance conservative despite a tough fourth quarter.

4.21pm: Stocks wobble as bonds weigh

The FTSE 100 is losing power as the midweek session winds down, down 0.5% now. 

Its mid-cap sibling, the FTSE 250, just remains with its head above ground, up 16 points or 0.1% at 20,955.

Across the Channel, the CAC is down 0.3% and the DAX is 0.5% lower, while over the Atlantic the Dow Jones has seemingly found a floor, down 0.25% and coming off its worst. 

The S&P 500 is down 0.2% and the Nasdaq down less than 0.1%.

Bond market yields on both sides of the pond, having been heading lower earlier, have been edging up in the past few hours.   

3.07pm: ...Wall Street more cautious than optimistic maybe?

The major Wall Street stock indexes all started higher but soon lost momentum. 

After starting 0.2-0.3% higher, but within half an hour of the opening bell the three major indices had all slipped marginally into the red. 

Nvidia was a key driver of this as the $3.3 trillion group's shares dipped only 0.2%, followed by Tesla and Apple.  

2.43pm: Wall Street modestly optimistic 

US stocks have started modestly higher, investors excited but probably keeping their powder dry for the Nvidia earnings later.  

The Dow Jones is up 0.2% and the S&P 500 and Nasdaq are both up around 0.3%. 

All of the top 10 of the S&P are moving less than 1%, all but two of them moving upwards. 

In London, the FTSE remains in shallow waters, down 0.1% with Kingfisher, Sainsbury's and Anglo American falling the most. 

1.17pm: UK rules for stablecoins industry proposed

The UK financial watchdog has published proposals for issuing stablecoins, crypto custody and financial resilience of cryptoasset firms, and launched a consultation about it. 

These proposals are the "latest milestone on the road to crypto regulation", the Financial Conduct Authority said, following "extensive engagement" with different parts of the financial and crypto sectors.

New rules aim to ensure regulated stablecoins maintain their value and that customers are provided with clear information on how the backing assets are being managed.

"At present, crypto is largely unregulated in the UK. We want to strike a balance in support of a sector that enables innovation and is underpinned by market integrity and trust," said David Geale, the FCA's executive director for payments and digital finance.

The FCA said it will work with the Bank of England on the rules.

Sarah Breeden, deputy governor for financial stability at the Bank of England, said: "For those stablecoins that expect to operate at systemic scale, the Bank of England will publish a complementary consultation paper later this year, including responding to industry feedback around allowing some return on backing assets."

12.25pm: Starling Bank profits fall

Profits at Starling Bank fell in the past year as the digital challenger was fined for its "shockingly lax" controls for potential money laundering and those under financial sanctions.

The UK fintech today posted its fourth consecutive annual pre-tax profit of £223 million for the year to March, but it was down 26% from the year before.

On the plus side, revenue rose to 4.7% to £714 million as customer deposits swelled to a high of £12.1 billion, up from £11 billion a year earlier, and open accounts increased 10% to a new high of 4.6 million.

While the bank's board enthused about a potential IPO last summer, there was no mention this time.  

CEO Raman Bhatia said: "These results represent an important milestone, marking the group’s fourth consecutive year of profitability and revenue growth."

Bhatia, the ex-HSBC banker who was appointed in March last year after founder Anne Boden stepped down in 2023, said the year had seen the lender demonstrate its "commitment to addressing legacy matters, investing in our people and capabilities so we now move forward from a position of strength".

12.12pm: US futures tick up

Blue-chip shares in Europe remain subdued as the clock ticks past midday, though US futures have just perked up. 

S&P 500 futures were indicating a 0.3% decline about an hour ago, and are now up 0.1%, with a similar scene for the Nasdaq, where futures are now up 0.25%, and with those for the Dow Jones also turning from red to green. 

It's not exactly clear why, not yet anyway. No social media posts from Donald Trump, no significant data.  

MBA mortgage data came out, Macy's earnings and revenues both beat expectations marginally but guidance was cut.

Gamestop has announced new purchases of bitcoin. 

11.48am: Fewer global jobs being created

More than seven million fewer jobs are likely to be created this year due to US tariffs and geopolitical instability. 

The ILO (International Labour Organization) has slashed its global jobs forecast due to falling US demand hitting Canada, Mexico and the Asia-Pacific region most.

This year is now expected to see 1.5% global job growth, down from 1.7% at its previous forecast.

Close to 84 million jobs across 71 countries are directly or indirectly tied to US consumer demand, the ILO estimates, which are "increasingly at risk of disruption due to elevated trade tensions".

11.23am: Footsie drops 

The FTSE 100 has dropped into the red, with Kingfisher's 3.1% decline leading a swathe of consumer-focused names among the fallers. 

It is followed by retailers Sainsbury and JD Sports Fashion, retail-adjacent 3i Group, and consumer product makers Coca-Cola HBC, Unilever and Diageo. 

Others dragging on the index include financial, with Lloyds and Aviva, while big pharma, mining and commodities names are also lower. 

The FTSE 250 remains higher, though, up 0.2%. 

"Risk sentiment has lost some steam on Wednesday," says market analyst Kathleen Brooks at XTB.

As well as the Footsie's drop lower, European stock indices are also down and US equity futures are pointing to a lower open.

"There are no major drivers of sentiment this morning, however, multiple factors have led to a softening in risk appetite including: higher bond yields after a weak auction of Japanese debt, Shein moving its proposed listing to Hong Kong from London and the prospect of ECB Governor, Christine Lagarde, leaving her position at the ECB early," says Brooks.

Shein has given up on a London IPO, reportedly, as Chinese authorities have dragged their heels over approving the overseas listing.  

10.50am: Reactions to recent turbulence

Over half - 56% to be exact - of DIY investors increased their exposure to cash in the past three months, research by Charles Stanley Direct has found. 

Millennials and Gen Z led the trend, following Trump's tariff announcements and the consequent market volatility, with many having presumably not seen such volatility before. 

Two-thirds of Gen Z investors (aged under 28) and millennials (under 44) sold other investments to hold cash instead, compared to 44% of Gen Xers and 31% of Boomers.

As well as cash, around 48% tuned to gold and 46% to property, the research found, polling a sample of 1,000 DIY investors across age groups between February and the end of April. 

Rob Morgan, chief investment analyst at Charles Stanley, says: "During times of uncertainty, keeping funds liquid or in lower risk investments can be beneficial to help weather a market storm. This holds true if we look at how Trump’s Liberation Day saw over £4 trillion wiped off the stock market overnight." 

He adds that cash is "not generally something that holds as part of a long-term investment strategy" and he espouses holding your nerve in times of volatility, saying "investors need to keep calm, stick to their investing plans, and keep focused on the fact that sharp short-term moves should pale into insignificance over multiple years and decades". 

But he acknowleged that cash or short-term bond funds "can be quickly sold and reinvested into other areas at opportune moments. However, market timing is notoriously hard and tends to require luck as well as judgement".

10.14am: SpaceX's Starship blows up again

Elon Musk's SpaceX saw another mixed report for its massive Starship rocket last night, which flew further than previous tests but still broke apart over the Indian Ocean before nailing a landing. 

The launch from the company’s Starbase Texas site marked the third test of the vehicle central to Elon Musk’s Mars ambitions.

Problems began when the Super Heavy booster exploded rather than landing as planned, and the upper stage failed to open its payload bay.

9.54am: US raises $22bn from tariffs

US tariff receipts from import duties topped $22 billion this month, not surprisingly marking one of the strongest months on record.

The spike, driven largely by President Trump’s new 10% tariffs on nearly all imports, highlights the scale of his trade policy shift since April.

Most of the month’s revenue came on 22 May, when $16.5 billion was deposited, according to US Treasury data, taking the total to over $92 billion since the start of the year.

Trump has threatened more tariffs, including levies on semiconductors, pharmaceuticals and tech firms such as Apple and Samsung.

9.29am: London stocks stepping higher

The FTSE 100 and FTSE 250 are edging higher now after an hour and a half of trading, up 0.2% and 0.35%.

Leading the gains among blue-chips are Rolls-Royce, Unite Group, Segro, Hikma Pharma and Howden Joinery. 

As well as Rolls, there are some other defence names on the leaderboard, including BAE Systems and Babcock.

Housebuilders and housing stocks are there too, including Barratt Redrow, Rightmove and Taylor Wimpey.  

Kingfisher shares are down 2.7% despite what seemed like an OK Q1 update earlier. 

The B&Q group's shares had been seen as a "tariff haven" for investors, says Chris Beauchamp at IG, based on Britons’ first impulse on seeing the sun is to start doing some DIY.

"A set of poor numbers in France was offset by UK consumers spending their unexpected early summer in Kingfisher’s stores, helping to lift like-for-like sales by 1.8%.

"Up 16% so far this year, the shares have been a haven from tariff volatility, though the update didn’t offer much to extend the rally in the short term."

The FTSE 250 is being led by Pets at Home, up 4.4% now after its results. 

Analyst Wayne Brown at Panmure Liberum points out that while no new guidance was issued, the group's free cash flow should now start to "rise materially now that we post capex peak", so while the £25 million buyback is not a surprise is is "new information".  

8.58am: Rentokil strengthens balance sheet with French exit

Shares in Rentokil Initial PLC (LSE:RTO) are up 1.6% on the pest control company striking a deal to offload its French workwear business for up to an expected €370 million cash, or around £274 million. 

The buyer is US-based investment firm HIG Capital, which has signed a binding put option to obtain the workwear, flat linen and clean room business in France for a gross enterprise value of roughly €410 million on a cash and debt-free basis.

Included in the expected cash consideration is an earn-out mechanism with a maximum value of €30 million, based on the performance of the business in 2026.

CEO Andy Ransom said it "simplifies our business, strengthens our balance sheet, and enhances cash generation".

8.31am: Housebuilding news 

Two bits of news from the house-building sector.

New UK regulations have been proposed this morning to help smaller housebuilders, including Homes England releasing land exclusively to SMEs and £100 million in 'accelerator loans'.

Deputy Prime Minister Angela Rayner says her Ministry of Housing, Communities and Local Government is today "taking urgent action to make the system simpler, fairer and more cost effective, so smaller housebuilders can play a crucial role in our journey to get Britain building".

The package of reforms is aimed at streamlining planning, easing regulation and improving access to finance.

And fresh data from Zoopla is showing that the property market is enjoying its busiest May since 2021.

Figures from the property portal have revealed a sharp uptick in sales activity, driven by falling mortgage rates, more relaxed lending criteria, and a 13% rise in homes for sale compared with last year.

Sales have surged since Easter, with buyers returning to the market despite the end of stamp duty relief.

8.14am: FTSE 100 opens slightly higher

The FTSE 100 has trotted 12 points higher tp 8,790 in initial trading, not helped by a 2.3% fall for Kingfisher. 

Top risers are Rentokil Initial, up 1.5% after selling off its French workwear unit, followed by BAE Systems and Rolls-Royce, both up 1.3%.

On the FTSE 250, Pets at Home is up 2%.  

Fresh supermarket sector data from Kantar, meanwhile, shows grocery price inflation has jumped to 4.1%, the highest level since February last year. 

Lidl and Aldi both reached new market share highs as the discounters continue to enjoy strong growth, while Sainsbury’s sales growth accelerated to 4.7%, giving it a 15.1% share. 

Kantar highlighted that consumers are "shaping their diets around their lifestyle choices, with health, wellbeing and exercise apparently top of many people’s minds" and sports nutrition products the biggest winners, sales volumes up 45% over the past five months.

8am: Good dog: Pets at Home obeys its own guidance

Pets at Home Group PLC (LSE:PETS) has posted profits bang in line with expectations and reiterated its guidance for the year ahead. Good dog!

The pet store and veterinary services chain reported flat statutory revenue of £1.5 billion for the year to 27 March 2025, with statutory profit before tax rising 14% to £120.6 million.

Underlying PBT was up 0.7% to £133.0 million, exactly in line with guidance given in March. 

Equally, for the current year, guidance was repeated for a fall in underlying PBT to between £115 million and £125 million, with the first six weeks of the year having "begun as expected".

7.44am: Has Kingfisher nailed Q1?

Kingfisher PLC (LSE:KGF) reported a revenue resurgence in the first quarter, with the B&Q and Screwfix owner benefiting from strong seasonal sales and good weather.

Sales came in at £3.3 billion, a 1.6% increase on the previous year, or 2.2% rise on a constant currency basis, for the three months ended 30 April 2025.

Underlying sales growth, excluding calendar impact, was 3.1%. Like-for-like sales increased by 1.8%, or 2.7% on an underlying basis.

City analysts had expected sales to fall 1.5%, with LFL sales declining 0.7%.

7.29am: Largest ever fine issued to UK water company 

Thames Water has been hit with the largest ever penalty issued by UK water regulator Ofwat, over failures in how it deals with wastewater and breaking the rules relating to the payment of dividends. 

The UK's biggest water company by customer base and its shareholder will have to pay almost £123 million, made up of £104.5 million for breaches of wastewater rules and an additional £18.2 million for dividend breaches.

Ofwat said the fine would not be paid by customers. 

7.15am: FTSE 100 predicted to reflect caution 

The FTSE 100's dearth of tech giants or perhaps the influence of bond markets is predicted to see a cautious start on Wednesday, despite strong gains on Wall Street overnight. 

Futures for London's blue-chip index are pointing to a five-point decline at the open, removing a portion of the 60.5 points added the day before to finish a tad over 8,778.

US stocks enjoyed themselves even more, with the Nasdaq surging 2.5% and the S&P 500 just over 2%, while the Dow Jones rose 1.8%. 

Asian markets are mixed this morning, mostly lower, with Japan's Nikkei flat but the rest in the red, led by a 0.8% decline for the Hang Seng.

Japanese bonds are in focus again. More on that if you want it in a minute. 

 

5am: What to watch on Wednesday 28 May

Shares in Kingfisher PLC (LSE:KGF) seemed harshly hammered last time it published results, despite a £300 million share buyback, so it remains to be seen whether management of the B&Q and Screwfix owner will be able to please investors with a first-quarter update.

There will also be supermarket industry data from Kantar, after the last set of numbers showed take-home sales boosted by Easter falling later this year, increasing by 6.5% versus 2024, while grocery price inflation edged up to 3.8%. 

Much later in the day, the big event will be earnings from Nvidia Corp (NASDAQ:NVDA), fresh from boss Jensen Huang having said that US chip controls have backfired. 

The chipmaker is expected to post a nearly 66% jump in revenue to $43.37 billion, as artificial intelligence demand continues to drive record sales.

Announcements due:

Trading updates: Kingfisher, S4 Capital, Softcat

Finals: C&C Group, Pets At Home Group

Overseas earnings: HP, NVIDIA, Salesforce, Synopsys

Economic announcements: Kantar Grocery Market Share (UK), Unemployment Rate (GER), MBA Mortgage Applications (US), Crude Oil Inventories (US)