Weekly review
By Benjamin Chiou
Date: Friday 06 Nov 2026
(Sharecast News) - The FTSE 100 finished at 10,673.94 on Friday, ending down 0.5% for the week.
Equity view
Ibstock warned that full-year earnings would fall well below market expectations as weak construction demand continued to weigh on the brickmaker, with third-quarter clay division sales coming in 22% below its forecasts. Industry figures showed UK brick volumes fell by around 17% year-on-year in July and August, prompting Ibstock to cut planned production by approximately 20%.
Kier Group announced that its KierBAM joint venture with Royal BAM Group had been appointed to support a construction programme worth around £600m at Devonport Royal Dockyard in Plymouth. The contract, awarded by Babcock on behalf of the Ministry of Defence's Defence Nuclear Enterprise, covers works at the dockyard's 10 Dock.
Shell agreed to sell its 16.67% interest in Australia's North West Shelf liquefied natural gas project to ADNOC-backed XRG for $1.45bn. The transaction forms part of the energy group's ongoing efforts to simplify its portfolio and recycle capital from mature assets.
Associated British Foods reported a sharp decline in annual profits as challenging conditions weighed on its Primark retail chain and grocery operations. The company warned that group adjusted operating profit and adjusted earnings per share would decline further in the new financial year.
Hiscox reported a 9.5% increase in group insurance contract written premiums for the first nine months of 2026, supported by accelerating growth in its retail operations. The specialist insurer's trading update was well received by investors, helping its shares outperform a falling FTSE 100.
TP Icap said third-quarter revenue increased 11% year-on-year to £620m, reflecting a strong performance from its global broking division. The interdealer broker reiterated that it remained comfortable with market expectations for the full year.
Marks & Spencer reported a 16.2% increase in half-year revenue to £9.26bn, while adjusted pre-tax profit more than doubled to £403.2m from £184.1m as it recovered from the previous year's cyberattack. However, profitability remained below levels achieved two years earlier, with strong food sales offset by continued weakness in clothing, fashion and home.
Smith & Nephew cut its full-year underlying revenue growth forecast to around 3% from 4% and reduced its trading profit growth guidance to 4% from 8%, blaming weaker-than-expected performance in its US orthopaedics business. The medical technology group reported a 3.4% increase in third-quarter revenue to $1.55bn, supported by sports medicine and advanced wound management.
JD Wetherspoon reported an 8.2% increase in like-for-like sales over the first 14 weeks of its financial year, with bar revenue up 9.4% and food sales rising 6.8%. Total sales increased 9.1%, while net debt fell to £736m from £756m a year earlier.
Lion Finance Group reported a 21% jump in third-quarter profits to GEL 661.9m (£182m), up from GEL 547.2m a year earlier, as lending growth remained strong across its Georgian and Armenian operations. The former Bank of Georgia group increased its quarterly dividend by 22.6% to GEL 3.25 per share and announced a further GEL 62m share buyback.
Weir Group reaffirmed its full-year guidance after third-quarter orders rose 8%, supported by strong demand for mining equipment and aftermarket services. However, shares fell as investors focused on execution risks, including around £30m of delayed orders and the need for a strong fourth quarter to meet expectations.
ASOS reported improved annual earnings and a return to sales growth as its turnaround strategy began to deliver results, although it warned that a recent cyberattack had affected current trading. The online fashion retailer reported a 9% decline in annual revenue to £2.25bn but returned to a statutory pre-tax profit of £24.4m.
BP raised $1.06bn (£810m) from the sale of a 5% stake in Norwegian oil and gas producer Aker BP, reducing its holding from 15.9% to 10.9% as part of efforts to strengthen its balance sheet. The energy giant said the disposal increased its expected full-year proceeds from divestments and other transactions to around $9bn, approximately $1bn above previous guidance.
National Grid reported a sharp rise in interim profits, supported by increased investment in electricity infrastructure, and upgraded its earnings guidance. Revenue increased 15% to £8.14bn, while pre-tax profit more than doubled to £1.73bn from approximately £828m a year earlier.
BT Group maintained its full-year outlook and raised its interim dividend as its pension deficit narrowed and second-quarter trading exceeded expectations. Half-year revenue increased 1% to £8.75bn, while pre-tax profit rose 29% to £1.24bn, with the interim dividend increased 2% to 2.5p per share.
Autotrader reported a 1% decline in half-year revenue to £313.4m and a 4% drop in pre-tax profit to £191.2m, as weaker vehicle and accessory sales weighed on results. However, adjusted earnings per share increased 5% to 18.1p, while the company raised its interim dividend by 10% to 4.2p.
IAG reported a decline in third-quarter operating profit before exceptional items to €1.73bn from €2.05bn a year earlier, as fuel costs jumped 30.4% and air traffic control disruption affected operations. Revenue increased 4.5% to €9.74bn, prompting the British Airways owner to raise its interim dividend by 10% and continue its €1.5bn share buyback programme.
Economic news
UK manufacturing activity expanded at its fastest pace in more than two years in October, with the S&P Global manufacturing purchasing managers' index rising to 52.8 from 51.9 in September. New orders increased at their quickest rate since July, although employment growth stalled and rising energy and transport costs pushed input price inflation higher.
UK services sector growth accelerated to an eight-month high in October, with the S&P Global services PMI rising to 52.8 from 52.1 in September. The composite output index, covering manufacturing and services, increased to 52.9 from 52.0, although businesses reported a further intensification of cost pressures.
The Bank of England increased its benchmark interest rate by 25 basis points to 4%, with policymakers voting eight to one in favour of the move as elevated energy prices threatened to fuel persistent inflation. The central bank warned that consumer price inflation, which reached 3.5% in September, could rise to around 5% by the middle of 2027.
UK house prices fell 0.6% in October, according to the Lloyds House Price Index, bringing the average property price down to £296,285. Prices were 1.2% lower than a year earlier, the biggest annual decline since October 2023, as higher borrowing costs and pressure on household finances weakened demand.
International events
US job creation accelerated sharply in October, comfortably beating forecasts, while unemployment edged lower and wage growth unexpectedly picked up, according to official figures released on Friday. Non-farm payrolls increased by 165,000, the Bureau of Labor Statistics said, well ahead of consensus expectations for a 65,000 rise and more than double September's upwardly revised gain of 60,000.
Chinese manufacturing activity expanded for the eleventh consecutive month in October, with the RatingDog manufacturing PMI holding broadly steady at 52.0, compared with 52.1 in September and expectations of 51.6. However, the privately compiled survey contrasted with official figures showing the manufacturing PMI falling to 49.3 from 50.1, signalling a contraction.
Eurozone manufacturing activity continued to expand in October, although supply chain pressures intensified and input costs rose at their fastest pace in five months. The S&P Global manufacturing PMI edged down to 52.7 from 52.9 in September, beating forecasts of 52.4 and marking the ninth successive month of expansion.
US manufacturing activity continued to expand in October, with the Institute for Supply Management's PMI rising to 55.5 from 54.5, while the S&P Global index eased to 54.9 from 55.9. The surveys pointed to continued growth in production and new orders, although elevated energy costs, tariffs and supply chain disruption kept inflationary pressures high.
The Reserve Bank of Australia raised interest rates by 25 basis points to 4.85%, their highest level since 2008, in its fifth increase of 2026. Policymakers voted six to three for the move and warned that inflation was unlikely to return to the central bank's 2% to 3% target range until towards the end of 2027.
Eurozone private-sector growth slowed to a four-month low in October as new orders weakened and inflationary pressures intensified. The final S&P Global composite PMI fell to 51.7 from 53.7 in September, missing expectations of 51.9, while the services index declined to 51.4 from 53.0.
US services sector activity continued to expand in October, although the pace of growth moderated and cost pressures remained elevated. The S&P Global services PMI declined to 56.1 from 58.8 in September, while the ISM services index eased to 54.5 from 54.9, with both surveys indicating continued expansion.
Oil prices fell sharply as reports of potential diplomatic progress between the US and Iran raised hopes of an easing of the conflict in the Middle East. Front-month Brent crude futures dropped more than 16% over the week to below the $99-a-barrel mark, weighing on energy stocks while providing some relief to airlines and other fuel-intensive businesses.
US non-farm payrolls increased by 165,000 in October, the Bureau of Labor Statistics said, well ahead of consensus expectations for a 65,000 rise and more than double September's upwardly revised gain of 60,000. The unemployment rate dipped to 4.1% from 4.2%, against expectations for an unchanged reading, although the number of unemployed people remained broadly stable at 7.1m.
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