The FTSE 100 index moved deeper into record territory, boosted by a strong session for pharmaceutical stocks including AstraZeneca.
The gains came despite a fall for Wall Street futures after US politicians failed to agree a funding deal to avert a shutdown of government operations.
On the corporate front, Greggs shares jumped after the baker reported an improved sales performance in August and September.
FTSE 100 Live Wednesday
- Shutdown hits US futures
- Greggs sales show recovery
- Tate & Lyle cuts FY guidance
Market update: AstraZeneca leads FTSE 100 to new record, US futures lower
10:17 , Graeme EvansA 6% surge for AstraZeneca today helped the FTSE 100 index top 9400 for the first time as traders shrugged off the US government shutdown uncertainty.
London’s top flight, which last night posted a record close after its best quarter since the end of 2022, lifted another 0.7% or 62.26 points to 9412.69.
The rise represented significant outperformance over European markets, particularly given expectations for a weaker performance on Wall Street.
S&P 500 index futures fell by 0.7% after US politicians were unable agree a funding deal to avert the first shutdown of government operations in seven years.
While previous closures such as October 2013’s 17-day shutdown failed to dent markets, there are fears that delays to the collection of economic data will impact Federal Reserve decision making on lower interest rates.
The big jump for AstraZeneca shares came amid wider relief in the European pharmaceuticals sector after President Trump announced a government-run website enabling consumers to buy drugs directly from manufacturers.
The White House also announced its first “most favoured nation” drug pricing deal with Pfizer, boosting confidence across the sector after months of uncertainty.
Astra reclaimed its spot as London’s most valuable company with a rise of 662p to 11,844p, while Hikma Pharmaceuticals surged 5% or 82p to 1780p and GSK rose 36.2p to a one-year high of 1610.7p.
Other stronger stocks in the FTSE 100 included Diageo with a rise of 26.5p to 1802p, while Marks & Spencer rallied 4.4p to 368.9p.
JD Sports Fashion improved 0.9p to 96.2p as investors welcomed last night’s forecast-beating quarterly figures and comments by key partner Nike.
Peel Hunt, which has a 200p price target on JD shares, said: “Nike is not the only game in town for JD but it is a crucial one, and the print and call were upbeat.
“JD’s shares discount lots of bad news, but we are starting to see clear reasons to believe that this may be too cautious.”
On the fallers board, the £100 billion-valued Rolls-Royce dipped 18p to 1172p and British Airways owner IAG faded 5p to 381.1p.
In the FTSE 250, a medium-term target by Taylor Wimpey to grow completions to 14,000 from this year’s expected figure of 10,400-10,800 failed to lift shares after their recent poor run.
The housebuilder edged up 0.25p to 103.3p, held back by its disclosure of continued soft trading conditions ahead of next month’s Budget.
Greggs shares rose 7% or 120p to 1724p after it provided reassurance on recent trading and said the cost outlook had improved slightly.
Tate & Lyle slumped to the bottom of the FTSE 250 index, falling 9% or 43p to 406.6p after the sweeteners and ingredients firm downgraded full-year guidance.
Chief executive Nick Hampton said: “While the level of customer engagement is high, we have seen a slowdown in market demand, particularly in the last two months, which in turn has slowed our recent performance.”
Tate & Lyle shares fall on profit alert
09:32 , Graeme EvansTate & Lyle shares have fallen 9% after the sweeteners and ingredients firm downgraded full-year guidance due to weaker market demand.
The FTSE 250-listed firm said it now expects revenues and underlying earnings to fall by a “low single-digit per cent” in the year to March 31.
It had previously forecast revenues growth at, or slightly below, the bottom of the 4% and 6% range, while underlying earnings growth was expected ahead of sales.
Chief executive Nick Hampton said: “While the level of customer engagement is high, we have seen a slowdown in market demand, particularly in the last two months, which in turn has slowed our recent performance.”
The shares fell 42.8p to 406.8p.
Budget uncertainty weighs on Taylor Wimpey demand
09:20 , Graeme EvansTaylor Wimpey has reported a dip in sales activity as the prospect of November’s Budget adds to concerns weighing on homebuyer confidence.
It reported a net private sales rate of 0.65 per outlet per week in the nine weeks to September 28 – an indicator of the average number of homes sold at each of its development sites.
This was lower than the 0.7 rate recorded over the same period last year.
Taylor Wimpey told investors it was on track to meet its target of completing the sale of between 10,400 and 10,800 homes over 2025, and generating an operating profit of about £424 million.
Shares edged 0.4p higher to 103.45p, having fallen by 15% so far this year.
Convatec unveils $1bn investment plan
08:52 , Graeme EvansFTSE 100-listed medical products and technology firm Convatec has unveiled plans for a new R&D site in Manchester as part of more than $1 billion dollars (£742 million) of investment in the UK and US over the next decade.
Convatec said it has earmarked £500 million of investment in the UK, which will see it open the new “flagship” Manchester hub in 2027.
The move is seen as a welcome boost for Britain’s life sciences sector amid a shift to the US to offset US President Donald Trump’s trade tariffs.
Drug stocks lift FTSE 100 after record close, Greggs up 6%
08:20 , Graeme EvansThe FTSE 100 index has made a solid start, even though Wall Street futures are lower in response to the start of the US government shutdown.
London’s top flight, which last night posted a record close after its best quarter since the end of 2022, lifted another 0.2% or 16.87 points to 9367.30.
Pharmaceutical stocks supported the performance, with AstraZeneca up 5% or 526p to 11,704p, Hikma up 4% or 74p to 1772p and GSK 24p stronger at 1598.5p.
They rallied after President Trump announced a government-backed website that will enable consumers to buy drugs directly from manufacturers.
Meanwhile, Diageo shares rose 35.5p to 1811p and London Stock Exchange rallied 128p to 8644p.
A reassuring trading update by Greggs helped its shares put back some of their recent falls, with the FTSE 250 stock up 6% or 99.7p to 1703.7p.
US government shutdown stirs market jitters
07:56 , Graeme EvansThe first US government shutdown in seven years has triggered a muted response on Wall Street, with futures trading currently down by about 0.6%.
The declines follows a strong finish to last night’s session, with the S&P 500 index near a record high thanks to its best September in 15 years.
The relaxed stance reflects the limited market impact of previous closures, such as during October 2013’s 17-day shutdown.
UBS said: “Even during extended shutdowns, the broader economy and markets have experienced only limited disruption, with delayed activity typically rebounding once the government reopens.”
The biggest fear among traders is that delays to the collection and release of most government economic data will impact Federal Reserve decision making on lower interest rates.
Jacob Falkencrone, Saxo’s global head of investment strategy, said: “Every few years, US politics serve up the same drama: lawmakers fail to agree on a budget, and parts of the federal government grind to a halt.
“The reality? For financial markets, shutdowns have historically been more theatre than tragedy. They dent growth in the short term and stir nerves, but rarely leave lasting scars on portfolios.
“Still, with debt climbing and politics more polarised than ever, investors, both in America and abroad, are right to ask whether this time could be different.”
Business confidence slides amid rising costs - IoD
07:33 , Graeme EvansBusiness confidence slumped last month amid concerns over cost rises, according to a new survey of company bosses.
The Institute of Directors said its monthly economic confidence index, which measures business leader optimism about the prospects of the UK economy, posted a minus 74 reading for September.
This marked a significant decline from minus 61 and struck the lowest level since the index was launched more than nine years ago.
IoD chief economist Anna Leach said: “Business confidence has plumbed new depths in September, following a fleeting improvement at the tag-end of summer.
“Conditions worsened across the board, with cost expectations hitting a record high, driven notably by employment costs. Investment expectations declined again, although remained somewhat above the most recent low in November 2024.”
House price average up 0.5% in September
07:27 , Graeme EvansThe average house price rose by 0.5% in September, leading to a broadly unchanged annual rate of 2.2% in figures published by Nationwide today.
The building society recorded an average price of £271,995 for the month.
Chief economist Robert Gardner said the stability in the annual rate of house price growth mirrored that of activity over the past three months.
He said the number of mortgages approved for house purchase has been hovering at around 65,000 cases per month, close to the pre-pandemic average.
Gardner added: “Despite ongoing uncertainties in the global economy, underlying conditions for potential home buyers in the UK remain supportive.
“Unemployment is low, earnings are rising at a healthy pace, household balance sheets are strong and borrowing costs are likely to moderate a little further if Bank Rate is lowered in the coming quarters as we, and most other analysts, expect.
“Providing the broader economic recovery is maintained, housing market activity is likely to strengthen gradually in the quarters ahead.”
Figures for the three months to September indicated that the majority of regions saw a modest slowdown in annual house price growth.
Northern Ireland remained the strongest performer by a wide margin, with annual house price growth of 9.6% in the quarter.
Greggs reports sales recovery, cost inflation outlook improves
07:11 , Graeme EvansBakery chain Greggs today reported an improvement in trading in August and September after sales demand suffered in July’s heatwave.
Company-managed shop like-for-like sales rose by 1.5% for the 13 weeks to 27 September, leading to growth of 2.2% in the year-to-date.
With the outlook for cost inflation in 2025 marginally improved, the company made no change to expectations for the financial year.
It said: “Greggs continues to make progress despite challenging market conditions, evolving its offer further and making the brand more convenient for a wider range of customers through disciplined estate expansion.”
FTSE 100 holds firm after record close, US markets lower
07:03 , Graeme EvansUS stock markets are on course for a weaker session after politicians last night failed to reach a funding deal to avert a US government shutdown.
Futures trading points to declines in the region of 0.4%, while the FTSE 100 index is set for a broadly flat start.
London’s top flight last night closed at a record 9350.43 after a rise of 0.5% or 50.59 points. The blue-chip index rose 6.7% in the third quarter, its best performance since the end of 2022.
The Dow Jones Industrial Average rose 0.2% yesterday, leaving the benchmark 2.4% higher in the usually weak trading month of September. The S&P 500 rose 0.4% for a 4.3% improvement across the month.
The US government shutdown lifted the gold price to $3863 an ounce, while the price of Brent Crude is slightly higher at $66.14 a barrel.
