Lunchtime market roundup: FTSE 100 up; mixed start in NY amid chip woe

Equities in Europe traded higher on Tuesday afternoon, despite paring some earlier gains, but New York looks set for a mixed open with chip sector worries still lingering.

Meanwhile, earnings season kicks off stateside, with UnitedHealth, Johnson & Johnson, JPMorgan and Wells Fargo among the first to report, to a mixed response.

The FTSE 100 index traded up 63.30 points, 0.6%, at 10,719.58. The FTSE 250 was up 48.53 points, 0.2%, at 24,376.59, and the AIM All-Share was down just 0.28 of a point at 774.63.

The Cboe UK 100 was up 0.8% at 1,064.49, the Cboe UK 250 climbed 0.4% at 21,280.72, and the Cboe Small Companies fell 0.3% at 18,865.65.

In European equities on Tuesday, the CAC 40 in Paris edged up 0.1%, while the DAX 40 in Frankfurt climbed 0.4%.

In New York, the Dow Jones Industrial Average is called up 0.6%, the S&P 500 flat and the Nasdaq Composite down 0.5%.

"Today was meant to be about banks, but instead it's all about chip stocks. This is good news for European indices, since Europe and the UK are tech-lite, but it is weighing heavily on Asian markets and the Nasdaq is pointing to a lower open later today," XTB analyst Kathleen Brooks commented.

The selloff followed reports of advances in memory-chip technology by China's ChangXin Memory Technologies, raising concerns about the competitive position of established manufacturers.

XTB's Brooks said "concerns about the cost of the AI infrastructure" and remarks from the boss of Broadcom also contributed to the sell-off.

"The CEO of Broadcom, a major chip producer and semiconductor design house, said that trading action is becoming speculative, hinting that the AI trade is a bubble," Brooks added.

Exposed to the sector worry, Polar Capital Technology Trust fell 1.9% in London, while Pacific Horizon Investment Trust fell 2.4%.

In New York, UnitedHealth was up 0.7% in pre-market dealings as the healthcare and insurance group raised its full-year earnings guidance after reporting a sharp rise in third-quarter profit.

Johnson & Johnson similarly raised guidance, but its stock was down 1.0%.

Among the banks, JPMorgan Chase and Wells Fargo were down 2.3% and 2.2%. Wells Fargo reported revenue of USD21.87 billion, while JPMorgan's managed net revenue totalled USD50.91 billion. CNBC reported that duo missed expectations of USD22.3 billion and USD51.22 billion.

The yield on the 10-year US Treasury eased to 5.19% midday Tuesday, from 5.24% late Friday evening. The 30-year yield narrowed to 5.56%, from 5.60%. The US observed Columbus Day on Monday. The Securities Industry & Financial Markets Association in the US recommended a Treasury market closure on Monday as a result. Equities traded as normal, however.

The pound rose to USD1.3242 on Tuesday from USD1.3211 at the time of the London equities close on Monday. Against the euro, it rose to EUR1.1833 from EUR1.1829.

The common currency bought USD1.1186, up from USD1.1169. Against the yen, the buck fell to JPY158.15 from JPY158.74.

In London, Melrose shares rose 4.2%, the best large-cap performer. It said that US authorities had begun the process of winding up their investigation into one of the company's sites in California, after a major safety incident in May.

The Birmingham, England-based aerospace and defence company had been subject to a civil investigation by the Orange County District Attorney's Office, which closed its criminal investigation in August without bringing charges.

The incident in question took place at the Garden Grove facility, operated by Melrose subsidiary GKN Aerospace Transparency Systems, which designs and manufactures advanced military and commercial transparencies and provides aftermarket support services.

BP added 1.3%. The oil major said it expects to report a marked reduction in debt and stronger refining margins in the third quarter.

In a pre-results trading update, BP said that in the Products arm, it expects an underlying replacement cost profit boost from "stronger realised refining margins" to the tune of USD1.9 billion to USD2.1 billion, relative to the second quarter.

Greencore advanced 2.1%. It raised profit guidance for the second time in three months as it reported a strong end to its financial year.

The Dublin-based convenience food maker now expects full-year adjusted operating profit for continuing operations to be around £248 million for the financial year ended September 25, ahead of current market expectations and previously raised guidance.

This would be nearly double £125.7 million reported in the 52 weeks to September 26, 2025, and above company compiled consensus of £236 million to £241 million.

Elsewhere in London, Marston's surged 17%. For the year ended September 26, the pub firm expects underlying pretax profit at the top end of market expectations, which it puts at a £76.1 million to £83.2 million range.

"We have delivered a third consecutive year of significant profit growth, margin improvements and strong recurring free cash flow," Chief Executive Officer Justin Platt said. "Our progress over the last three years shows the momentum we have as a high margin, highly cash generative local pub company, with profits substantially up and debt levels halved. With clear strategic priorities and our new format conversion programme expanding to at least 100 pubs next year, we enter the new year well set to drive our next phase of growth."

Share price falls for luxury kept a lid on the CAC 40's progress. LVMH fell 1.5%, Kering lost 2.2% and Hermes was down 2.4%.

LVMH on Monday reported slower organic revenue growth in the third quarter, as weaker demand in China weighed on its flagship fashion and leather goods division, offsetting stronger performances elsewhere.

The Paris-based luxury goods group reported revenue of EUR18.50 billion for the three months ended September 30, up from EUR18.28 billion a year earlier, representing organic growth of 1%.

This marked a slowdown from the 3% organic growth recorded in the second quarter.

Gold rose to USD4,180.72 an ounce early Tuesday, from USD4,167.84 late Monday afternoon. A barrel of Brent fell to USD104.63 from USD106.60.

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