Lunchtime market roundup: Europe mixed on eve of US Fed decision

European stocks traded mixed on Tuesday afternoon, with US tech stocks in the limelight after Donald Trump’s agreement to allow the export of advanced chips such as Nvidia’s H200 to China, ahead of the final interest rate decision of the year by the Federal Reserve on Wednesday.

A weekly ADP employment change report is released at 1315 GMT, before belated job openings and labour turnover survey data at 1500, giving the Fed a batch of employment data to chew on before Wednesday’s decision.

Brown Brothers Harriman analysts commented: ‘The US October JOLTS report will be a bigger job check ahead of Fed showtime. Further declines in the hiring rate, quit rate and vacancy-to-unemployed ratio would add to signs of worsening labour demand.’

The FTSE 100 index traded up 10.16 points, 0.1%, at 9,655.25. The FTSE 250 was up 28.57 points, 0.1%, at 21,949.85, and the AIM All-Share was down 1.64 points, 0.2%, at 746.88.

The Cboe UK 100 was up 0.2% at 968.48, the Cboe UK 250 was also 0.2% higher at 19,069.36, and the Cboe Small Companies was flat at 17,526.08.

In Paris, the CAC 40 was down 0.6%, while in Frankfurt, the DAX 40 was up 0.3%.

The pound was quoted at $1.3330 early on Tuesday afternoon in London, higher compared to $1.3319 at the equities close on Monday. The euro stood higher at $1.1644, against $1.1624. Against the yen, the dollar was trading at JP¥156.11, higher compared to JP¥155.88.

The yield on the US 10-year Treasury was quoted at 4.16%, narrowing from 4.19%. The yield on the US 30-year Treasury was quoted at 4.79%, slimming from 4.83%.

Scope Markets analyst Joshua Mahony commented: ‘A mixed start in Europe as markets continue to trade in an anticipation of tomorrow’s expected rate cut from the Federal Reserve. Concerns around the incessant rise in borrowing costs does create a worrying backdrop to the likely 25-basis point cut tomorrow, highlighting fears around the potential implications for global debt levels as the growing reliance on short-term debt means any rise in yields puts additional stress on the system.

‘US tech stocks will be in the limelight today, following Trumps agreement to allow the export of advanced chips such as Nvidia’s H200 to China. Understandably this is a win for the likes of Nvidia, AMD and Intel, with China representing far more than simply one more market to expand into. The debate over who leads in the AI war highlights the fact that China will arguably provide a market as big as the US should these companies manage to become embedded into the fabric of their build-out. However, the fear is that the export of these key products will simply speed up the development of Chinese products and services that ultimately undercut US firms much like we have seen for the EV market.’

In New York, the Dow Jones Industrial Average is called up 0.1%, the S&P 500 narrowly lower and the Nasdaq Composite down 0.1%.

US President Donald Trump warned on Tuesday that a potential Supreme Court ruling against his power to apply tariffs would threaten national security.

Since November 5, the court has been examining the legality of Trump’s sweeping tariff policy, although no date has been set for a ruling.

Several businesses and Democratic-led states have also filed complaints with the US Court of International Trade, arguing that the tariffs are unconstitutional as the power to impose them rests with Congress.

‘The biggest threat in history to US National Security would be a negative decision on Tariffs by the US Supreme Court,’ Trump said on social media.

The US would be ‘financially defenseless’ if the Supreme Court ruled against him, Trump said.

Brent oil was quoted at $62.66 a barrel early in London on Tuesday afternoon, down from $62.79 late Monday.

Gold rose to $4,205.79 an ounce against $4,192.10.

‘The prospect of a hawkish cut from the Fed later this week is also keeping the gold price contained,’ XTB analyst Kathleen Brooks commented, noting the price of the precious metal had fallen below $4,200 earlier this week.

‘Ultimately, we think that the market will be loathed to push the yellow metal too much lower in case the Fed does take a step towards the dovish side at the same time as inflation remains elevated and price pressures are building.’

In London, WPP rose 4.9%. The Times reported the advertising firm has won a UK government deal worth up to £2 billion.

The deal for the campaign was won after a competitive tender process. The pact had been previously held by Omnicom.

WPP shares have slumped 65% so far this year.

British American Tobacco fell 2.3% as its outlook disappointed. The London-based cigarette and nicotine product maker also said it was on track to meet its 2025 guidance and reaffirmed 2026 estimates.

The Dunhill and Kent maker expects total group revenue to rise 2% at constant rates for 2025, with new category revenue likely to reach mid-single digit growth at constant rates.

Looking further ahead, it said it is ‘confident in sustainably delivering mid-term growth algorithm from 2026’. However, the performance next year is expected to be at the lower end of the outlook range.

The range is for 3% to 5% growth in revenue and 5% to 6% growth in adjusted diluted earnings per share.

AJ Bell analyst Russ Mould commented: ‘The tobacco and vaping industry might look as if it is a ticket to easy money as customers get addicted to its products. However, British American Tobacco has shown that performance isn’t always a smooth ride. Shares in the tobacco group fell on a gloomy outlook statement, with 2026 performance expected to be at the lower end of targets.

‘Competition is fierce in the US vape market, not helped by the sector being flooded by products from China. The US is cracking down on illegal products but it’s an uphill battle to eradicate them completely.’

Investment manager Man Group added 4.0%. JPMorgan raised the stock to ’overweight’ from ’neutral’.

Applied Nutrition shares perked up 9.5%. The Liverpool-based sports nutrition brand now expects that full-year results will likely exceed current market consensus estimates for revenue of £122.3 million and adjusted earnings before interest, tax, depreciation and amortisation of £34.4 million by around 10%.

In the financial year ending July, the company reported revenue of £107.1 million and adjusted Ebitda of £30.9 million.

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