Daily market update: Markets steady on ceasefire extension, JD Sports, Shoe Zone

The FTSE 100 was steady after an extension to the ceasefire between the US and Iran.

Mixed messages from Donald Trump, and an insistence that a US blockade of Iran will continue, mean investors are still playing a guessing game. Suggestions from the Iranian side that they will not attend today’s talks in Pakistan and an attack on a container ship off Oman add to the fog of uncertainty.

Having tipped into alarm bell territory above $100 per barrel, oil prices have now dipped below this level – but they still tell a story of distress in global energy markets.

Reckitt

Chief executive Kris Licht is likely to come under greater scrutiny after Reckitt’s latest quarterly results. A weak cold and flu season might be good news for most of us but is a headache for Reckitt as it undermines sales of Lemsip and Strepsils.

Having been in situ for two-and-half years, Licht’s strategy to revive the group’s fortunes seemed to be gaining some traction in 2025, but recent events have intervened to damage the business. 

The energy price shock caused by events in the Middle East is expected to hit consumer demand and increase costs – undermining the progress made on tightening control of the purse strings. 

Households watching their pennies could accelerate a trend of people buying cheaper own-label products rather than the big brands offered by the likes of Reckitt. 

Emerging markets – a more reliable source of growth for Reckitt because of the lack of safe and reliable unbranded alternatives – may also be disproportionately impacted by rising oil and gas prices.

Reckitt’s shares are under water on a total returns basis since Licht took the helm and he badly needs a win. A sale of the group’s problem division – the Mead Johnson infant nutrition arm – could provide it. Danone has been rumoured as a suitor although Reckitt may have to offer a discounted price to get a deal across the line.

Reckitt remains confident of hitting full-year targets by leaning into its power brands, but the underpowered market response to today’s update suggests healthy scepticism about its prospects of doing so.

Shoe Zone

Shoe Zone has taken a step backward as life becomes harder for the discount retailer. A more cautious consumer, lower footfall to its stores, and extra costs linked to the Middle East crisis has put an end to its dream of making a profit this year. 

The company has issued a profit warning, saying it now expects to make a loss for the year to 3 October. For a business that sells essential items at low prices, one might be surprised at the number of setbacks over the years. Its journey has been wobbly, but these challenges have given it plenty of experience at coping with headwinds. 

Fresnillo

Gold and silver miner Fresnillo is making hay while the sun shines. It has achieved higher gold production quarter-on-quarter. 

Admittedly, gold and silver prices have been more volatile year-to-date, but demand has been reignited by the Middle East crisis as investors once again seek safe-haven assets. 

Gold is traditionally the go-to asset for investors during uncertain times, yet silver is less reliable on this front. Silver demand has historically been driven by industrial use whereas gold purchases have come from investors, governments seeking to diversify their foreign reserves, and from the jewellery market. 

Fresnillo’s silver output was less exciting over the past quarter as it mined lower-quality ore and processed lower volumes at some of its key projects. 

Bunzl

Inflation isn’t good news for most businesses but for a distributor like Bunzl, it has proved to be a benefit in the past.

Selling items like packaging, coffee cups and cleaning supplies to businesses on a ‘cost-plus’ basis – with pricing a fixed percentage of the cost of the goods it sells – has supported higher revenue and profit during previous periods of inflationary pressure. This was particularly the case during the pandemic and the immediate post-Covid period when supplies were constrained.

The key question is whether that will hold this time round. Bunzl is sticking with guidance for now, but investors will be alive to the risk it is unable to fully pass on higher costs for fear of losing business – thereby impacting margins.

JD Sports

Dan Coatsworth, Head of Markets at AJ Bell, comments: 

Are we about to see a changing of the guard across JD Sports? When one of the top people go from a company with a weak share price, it’s common to see others follow suit and fresh leadership brought in across the board. 

JD Sports’ chair Andrew Higginson is leaving after four years which is on the low side for such a role. Higginson leaves at a sensitive time for JD Sports, given its share price is stuck in the mud. 

Will he be the only one to leave? It’s only natural to ask how long Regis Schultz can stay as CEO given the market value of JD has fallen by a third since he took charge in 2022. During this period, JD has had to contend with headwinds from tariffs, more cautious consumers, a more competitive pricing environment, and declining investor sentiment towards the company. 

While some of these factors are outside of JD’s control, investors’ patience is wearing thin, and they won’t put up with a weak share price indefinitely. If the share price doesn’t recover, expect investors to bang the drum loudly for change.