8.15am: Tech funds and miners lead FTSE higher at open
The FTSE 100 has got off to a solid start, up 29 points to 10,513 in early trades as miners and tech investors beat the path higher.
Polar Capital Tech Trust is top riser, up 2.4%, with Scottish Mortgage up 1.6%.
They are joined by miners Anglo American and Antofagasta, both up over 2% as they get a boost from higher copper prices and Chinese economic data coming in better than expected. Glencore and Rio Tinto, seen as having less copper exposure, are both up around 1.5%,
Sainsbury’s is up 1.35% as it’s first-quarter update seems to have been well received.
Fallers are led by housebuilders Barratt Redrow and Persimmon, along with Ladbrokes owner Entain, following speculation about new taxes on gambling machines.
7.57am: Saga reiterates guidance
Saga has backed its guidance for the full year after getting off to a “strong” start to its new financial year, as higher spending by ocean cruise passengers offsets an expected drop in holiday customer numbers due to the conflict in the Middle East.
In an update ahead of its annual meeting, the over-50s products and services specialist said ocean cruise revenue for the first half is expected to be ahead of last year, helped by a 13% increase in booked per diems and a booked load factor of 93%.
Saga said it had a “high level of confidence” in ocean cruises for the rest of the year and beyond, with customers said to be typically booking well in advance and commodity and foreign exchange risk fully hedged to the end of 2027.
First-half holidays revenue and passenger numbers are expected to be ahead, though with full-year passenger numbers “potentially slightly behind”.
7.41am: Sainsbury’s backs outlook
Sainsbury’s sales have slowed in the first quarter of its new financial year but it has held its profit outlook steady.
The UK’s second-largest supermarket revealed total retail sales excluding fuel were up 2.7% in the 16 weeks to 20 June, with like-for-like sales up 2.1%.
Grocery sales for the first period of the new financial year were up 3.6%, driven by volume growth, while online grocery sales increased 12.5%.
Argos sales slipped 0.5% and general merchandise and clothing sales fell 3.7%.
7.27am: GDP unrevised
UK GDP for the first quarter of 2026 is estimated to have grown by 0.6% compared to the preceding three-month period, unrevised from the last estimate.
But year-on-year, GDP grew 0.9%, down from the previous estimate of 1.1%.
Exports and business investment were both revised up, though. Business investment rose 0.9% on the quarter, while imports jumped 1.4%.
Household consumption grew 0.6% and government spending increased 1.3%, helping to offset a wider current account deficit of £22.1 billion, which was slightly worse than expected.
Commenting on today’s Q1 GDP figures, the ONS’s director of economic statistics Liz McKeown says: “Our latest set of figures show no revision to economic growth in the first quarter of this year. However, growth for 2025 was revised down a little.
“Services were the main driver of growth in the latest quarter, with strength in computer programming, wholesale and advertising only partially offset by falls in rental companies and recruitment agencies. Production and construction also both grew overall, although construction only partly reversed its recent weakness.
“The household saving ratio continued to ease at the start of 2026 but remains above its pre-pandemic levels.”
FTSE 100 Live pre-open
London’s blue-chip stocks should come out of the blocks on Tuesday in a cautiously optimistic fashion, as various reports emerge about potential new government policies amid the looming handover of power on Downing Street.
The FTSE 100 has been called 10 points higher on the futures market, after falling almost 24 points to 10,484.22 yesterday.
Headlines in the financial press include that Keir Starmer and his new defence minister will unveil a defence plan with a reduced funding gap and £5 billion for drones, while elsewhere it is reported that incoming Prime Minister Andy Burnham could crack down on the gambling industry with new taxes.
Overnight, a rebound by US tech stocks improved the mood on Wall Street, with sentiment seemingly boosted by easing geopolitical tensions and a Supreme Court ruling that backed the Federal Reserve’s independence.
The Dow Jones added 0.6% to close about 52,000 for the first time, while the Nasdaq leapt 2.1% and the S&P 500 closed up 1.2%.
Asian markets are mixed this morning, with good tech-powered gains for Japan’s Nikkei and Korea’s Kospi, while the Hong Kong and Indian benchmarks drop back.
