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Highlights
FTSE 100 called to open higher as market sentiment improves
Ofgem announces higher-than-expected energy price cap from October
JD Sports Fashion launches share and reports trading update
The London market is expected to open in positive territory on Wednesday, with the FTSE 100 live LON:UKX projected to advance. Futures data indicated that the blue-chip index is set to climb by more than forty points. The FTSE UK 250 (LON:MCX) is also on course for a modest rise. The move comes as sterling edged lower against the dollar in early trading.
Economic Developments
The UK energy regulator Ofgem has announced that the domestic energy price cap will rise from October. The new cap, set above the previous level, surpasses expectations outlined in earlier forecasts. According to Ofgem, a household on a default tariff will see an increase of just under three pounds per month on average compared with the current period. This change is attributed to shifts in wholesale market conditions.
Earlier projections had indicated a possible reduction in household energy bills due to easing geopolitical tensions. However, updated assessments have reversed that outlook. Ofgem reviews the cap every quarter, with its decisions based on wholesale prices and network costs. The increase marks a continuation of volatility in household energy expenses across Great Britain.
Broker Ratings
In broker moves, Morgan Stanley has raised Balfour Beatty (LON:BBY) to an equal-weight stance. Separately, Berenberg initiated coverage on Zotefoams (LON:ZTF) with a recommendation and a price objective of five hundred forty pence. The same firm also began coverage on Trifast (LON:TRI) with a rating and a price objective of one hundred thirty pence.
FTSE 100 Corporate Updates
JD Sports Fashion (LON:JD.) confirmed the launch of a one hundred million pound share programme. The company highlighted that this decision reflects confidence in its industry positioning, ongoing market share growth, and operational execution.
In its scheduled trading update, JD Sports reported that like-for-like during its second quarter, which ended in early August, declined by around three percent. However, when adjusted for organic growth, increased by just over two percent. For the first half of the year, were down on a like-for-like basis but showed organic growth.
The group pointed to an improved performance in North America following deferred product launches earlier in the year. Stronger were also seen in apparel and online channels. In Europe and the UK, comparisons were impacted by strong figures linked to last year’s football tournament. Despite this, newer footwear lines and apparel categories delivered solid results.
Chief Executive Regis Schultz commented that consumers have remained resilient but selective. He added that while the trading environment remains challenging, the company still expects its full-year pretax to be in line with current expectations.
Company Results
Hochschild Mining (LON:HOC) reported a sharp rise. The mining firm benefited from stronger commodity prices and production growth during the first half of the year. The company noted that output from its key operations had improved, with efficiencies supporting margins.
The stronger results underline Hochschild’s recovery from previous periods marked by weaker demand and higher costs. The company continues to focus on maintaining production levels and operational discipline in its portfolio of assets across Latin America.
Currency Movements
Sterling edged lower in early morning trading, standing at approximately one point three four against the US dollar. The movement in the pound has contributed to cautious sentiment in currency markets ahead of the open of London equities trading.
