Early market roundup: FTSE 100 up softly as miners, gold price rise

Stock prices in London opened mixed on Wednesday as mining stocks performed well as the gold price climbed, while investors digested Democrats winning control of both the House and the Senate in the US at the midterm elections.

The FTSE 100 index opened up 4.43 points, marginally higher, at 10,642.86. The FTSE 250 was down 17.78 points, 0.1%, at 24,657.13, and the AIM All-Share was up 2.14 points, 0.3%, at 756.74.

The Cboe UK 100 was down 0.1% at 1,055.72, the Cboe UK 250 was down 0.2% at 21,793.78, and the Cboe Small Companies was up 2.3% at 18,973.61.

In European equities on Wednesday, the CAC 40 in Paris was up 0.4%, while the DAX 40 in Frankfurt also gained 0.4%.

The pound was quoted at USD1.3482 early Wednesday, higher than USD1.3416 at the London equities close on Tuesday. Against the euro, sterling edged down to EUR1.1983 from EUR1.1986 a day earlier.

The euro rose to USD1.1232 from USD1.1197 late Tuesday. Against the yen, the dollar fell to JPY158.19 from JPY158.44.

In the FTSE 100, Lion Finance Group was the leading gainer, climbing 4.4% after reporting higher third-quarter profit and net interest income.

The banking group said pretax profit rose 22% to GEL790.9 million, around USD304.3 million, from GEL647.0 million a year earlier, while net interest income increased 19% to GEL941.7 million from GEL788.7 million.

Lion Finance also declared a third-quarter dividend of GEL3.25 per share, payable on December 18.

Mining stocks were also among the leading risers, with Fresnillo advancing 3.8%, Endeavour Mining gaining 3.4%, and Anglo American and Antofagasta both climbing 2.4%.

At the other end of the blue-chip index, Weir Group fell 6.2% after reporting a sharp decline in original equipment sales during the third quarter, despite continued demand from mining customers.

The engineering group said original equipment revenue declined 26% organically year-on-year, while overall organic growth was 5.0%, including 4.0% growth in its Minerals division.

Weir said underlying demand remained "good" during the quarter, as customers continued to drive production, while mining markets remained positive, supported by strong demand across its core commodity exposures.

However, the company cautioned that specific geopolitical events could create additional short-term headwinds, although it remained confident in its medium and long-term opportunities for value creation.

Defence stocks were also under pressure, with BAE Systems declining 5.2% and Babcock International Group falling 3.2%.

Smith & Nephew dropped 2.9% after cutting its full-year 2026 guidance, citing weaker-than-expected growth in its US Orthopaedics business.

The medical technology company also confirmed that discussions with Johnson & Johnson over a potential combination involving its Orthopaedics division had ended.

In the FTSE 250, Trainline fell 4.8% after reporting a decline in half-year profit and revenue, reflecting the impact of changes to UK rail industry refund rules.

The rail ticketing platform said pretax profit fell to £55.2 million from £66.2 million a year earlier, while revenue edged down 1.0% to £233 million from £235 million.

Net ticket sales were broadly unchanged at £3.26 billion, although adjusted earnings before interest, tax, depreciation and amortisation rose 7.0% to £99.7 million from £93.2 million.

In Asia on Wednesday, the Nikkei 225 index in Tokyo closed down 1.4%. In China, the Shanghai Composite closed up 2.2%, while the Hang Seng index in Hong Kong gained 1.7%. The S&P/ASX 200 in Sydney ended down 0.6%.

In the US on Tuesday, Wall Street ended mixed, with the Dow Jones Industrial Average falling 0.4%, while the S&P 500 gained 0.4% and the technology-heavy Nasdaq Composite advanced 0.8%.

The results of Tuesday's US midterm elections delivered a major setback for President Donald Trump, as Democrats secured control of both chambers of Congress following a series of victories in traditionally Republican states.

Democrats captured Senate seats in former Republican strongholds including Texas, Kansas, South Carolina, Ohio, Maine and Iowa, while also regaining control of the House of Representatives for the first time since 2023.

The party flipped numerous House seats in states including Kentucky, New Jersey, Indiana and North Carolina.

The elections had been widely viewed as a referendum on Trump's presidency, with the results significantly weakening his political position during the final two years of his second term.

Following the defeats, Trump sought to distance himself from the outcome, posting on his Truth Social platform: "I wasn't on the Ballot and if I was, we would have won IN A LANDSLIDE!"

The president was subsequently branded a "failed lame duck president" following the Republican losses.

The yield on the US 10-year Treasury was quoted at 4.93% early Wednesday, narrowing from 4.94% on Tuesday. The yield on the US 30-year Treasury widened to 5.31% from 5.30%.

Brent oil was trading at USD104.00 a barrel early Wednesday, higher than USD103.24 late Tuesday, as investors continued to monitor developments in the Middle East.

Trump confirmed that the US had launched strikes on Iran, prompting warnings from Tehran that a renewed conflict would benefit neither side.

The strikes came as Americans prepared to vote in the midterm elections, amid speculation that Washington could resume a broader military campaign against Iran once polling had concluded.

However, Trump played down suggestions that a renewed offensive was imminent, telling the Financial Times that the US appeared to be making progress in its dealings with Tehran.

"We seem to be getting everything we want," Trump said on Tuesday.

Gold was quoted at USD4,034.34 an ounce early Wednesday, higher than USD3,933.38 on Tuesday.

Still to come on Wednesday's economic calendar, the UK releases its composite purchasing managers' index figures, while eurozone consumer price inflation and Irish unemployment data are also due.

In the US, the ADP employment report, trade balance figures and composite purchasing managers' index are scheduled for release.

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