UK markets held steady as earnings season approaches, with the FTSE 100 opening flat and Aston Martin under pressure. Matt Britzman of Hargreaves Lansdown noted a cautious tone as Tesla teased a cheaper Model Y, gold reached new highs, and oil edged up after a modest OPEC+ output rise.
Matt Britzman, senior equity analyst, Hargreaves Lansdown:
“The FTSE 100 has opened broadly flat this morning as the UK’s largest index takes a ‘wait and see approach’ to the week ahead. The main UK story comes from the FTSE 250 this morning as Aston Martin hits another speed bump. The luxury carmaker warned of weaker volumes and scrapped hopes for positive cash flow in the second half, marking another profit downgrade. Volumes remain the sticking point – despite new models, sales aren’t reaching levels needed to turn a profit, let alone generate positive cash flows. Management is cutting costs and delaying spending while pointing one finger at US tariffs. But, with wholesale volumes now expected to fall mid-to-high single digits this year, the road to recovery looks long and windy, with no end in sight.
US futures point higher after the S&P 500 capped Friday with fresh all-time highs in a whipsaw session. Investors are navigating a data drought as the government shutdown drags on, but Fed minutes and policy chatter later this week will be key for rate expectations. Hopes of further cuts, even as sticky inflation looms longer term, combined with optimism for earnings season is keeping momentum alive, with nearly 70% of the largest US companies seeing their profit forecasts raised over the past three months.
Tesla is teasing something big as a flurry of X posts has fans bracing for what looks like the launch of a more affordable Model Y tomorrow. While the AI narrative still dominates Tesla’s valuation, progress in the core auto business remains vital for keeping sentiment strong and supporting its lofty earnings multiple. After smashing third quarter deliveries, attention now shifts to how Tesla can offset the loss of US tax credits, and an entry-level Model Y should help keep volumes humming. The price tag will be the real tell, offering clues on how far Tesla has pushed cost savings and how much new demand it can unlock.
Gold surged to a fresh all time high this morning as traders braced for a prolonged US shutdown and leaned into expectations of imminent rate cuts. But gold’s rally is telling a different story this time with performance moving in step with other assets like stocks and cryptocurrencies, hinting that growth drivers are rooted more in rate and inflation dynamics than a classic flight to safety.
Oil prices moved higher in early trading after OPEC+ stuck to a cautious playbook, agreeing to a modest 137,000 barrel per day output hike for November. The move eased fears of a supply surge as the group framed the decision around steady economic signals and healthy fundamentals, while keeping the option to pause or reverse. Gains were capped by worries that Washington’s shutdown could sap growth and energy demand.”
