Daily market update: FTSE 100 steady ahead of rate decisions, BP, Currys

The FTSE 100 was steady in early trading as investors await a Bank of England meeting which is seen as being nailed on to deliver a pre-Christmas rate cut.

Continuing strength in the housebuilding sector and some signs of life among retail shares were notable features of early trading. This followed selling in Asian and US markets overnight as fears about a possible AI bubble persist heading into the end of the year.

The BoE’s counterparts at the European Central Bank are also set to announce their decision on rates today, with no change anticipated. Delayed US inflation data is also likely to be scrutinised later as investors look for some clues about what direction the Federal Reserve might take next year.

BP

The departure of Murray Auchincloss as BP CEO probably can’t be chalked up as a major surprise, but the timing and suddenness of it can be.

Auchincloss has struggled with the difficult task of turning around BP’s fortunes since replacing Bernard Looney on a permanent basis less than two years ago. Looney left under a cloud regarding his personal conduct and after having commenced on an ambitious energy transition strategy that hit BP’s shares.

Auchincloss has walked back on BP’s green push but has had his feet to the fire ever since activist investor Elliott joined the shareholder register earlier this year. The ultimate arbiter – the share price – doesn’t speak in Auchincloss’ favour, with a total return of just 5% under his tenure compared with 39% over the same period for the FTSE 100 and 19% for its main rival Shell.

The appointment a few months ago of a new chair, Albert Manifold, helped to tee up this change. Reportedly the choice of Meg O’Neill from Australia’s Woodside Energy as Auchincloss’ replacement has Elliott’s blessing, which should help give her some breathing space as she looks to implement her strategy when she starts in the role next April.

Unlike Auchincloss, O’Neill is an outside appointment and this may help her to deliver the radical change needed to get BP back on track. O’Neill previously led a merger with BHP’s petroleum business which helped double Woodside’s oil and gas production, although in share price terms Woodside has notably underperformed BP over her time in charge.

Currys

The decision by electronics retailer Currys to turn down takeover bids early last year continues to be rewarded as the company maintains its recent renaissance.

The significant increase in free cash flow in its first-half results and reassuring accompanying guidance have gone down well with investors, creating confidence that it is enjoying a strong festive trading period.

Currys is benefiting from being one of the few remaining electronics retailers of scale with a high street presence. The pace of change in consumer electronics means shoppers are often looking for guidance on what to buy and how the kit they are buying works. By offering credit, installation, spares and repairs and recycling services, Currys is attempting to position itself to benefit throughout the lifecycle of a product.

The comeback of meaningful returns of cash to shareholders in 2025 has been a key milestone for the business and Currys has managed to keep a tight rein on costs. A continuing recovery in its Nordics business is also helping to support the positive sentiment around the company.

With the outlook for the UK economy still uncertain, Currys won’t be taking anything for granted. But the company is looking in decent shape to take on whatever the backdrop might throw at it.