Financial markets are on edge after yesterday’s global bonds sell-off pushed the UK’s 30-year gilt yield to its highest level since May 1998.
The developments heaped more pressure on Chancellor Rachel Reeves as she prepares to deliver her Budget at the end of November.
In today’s developments, Thames Water creditors outlined a £20.5 billion spending plan and Watches of Switzerland updated on trading in the face of US tariffs.
FTSE 100 Live Wednesday
- Date set for autumn Budget
- Thames Water creditors outline plans
- Watches of Switzerland reassures
Market update: FTSE 100 recovers lost ground, Hilton Food sinks 20%
10:16 , Graeme EvansBP and AstraZeneca today helped to shore up the London stock market as the FTSE 100 index rallied despite a fresh rise in the UK’s 30-year bond yield.
London’s top flight recovered from Tuesday’s decline of 0.9% with an advance of 0.4% or 35.52 points to 9152.21. The FTSE 250 index, which fell 2.2% yesterday, put back 77.80 points to stand at 21,240.69.
The calmer trading came despite little change in bond market sentiment as global investors demand a higher return to lend to countries with heavy borrowing needs.
The yield on 30-year UK gilts initially climbed by another five basis points, peaking at a fresh 27 year high of 5.749% before settling closer to its opening mark. The pound, which suffered hefty losses on Tuesday, held firm at $1.338.
In the FTSE 100, the advance of Mexico-based silver miner Fresnillo on the back of higher precious metal prices continued with a fresh rise of 5% or 89p to 2008p.
Copper miner Antofagasta also put on 54p to 2185p while Glencore added 53.5p to 289.6p.
BP shares rose 5.25p to 439.45p after Morgan Stanley improved its stance on the oil giant.
Fellow heavyweights AstraZeneca and Rio Tinto also provided support to the FTSE 100 by rising 128p to 12,032p and 45.5p to 4627p respectively.
On the results front, Sunbelt plant hire business Ashtead gained 112p to 5488p after its first quarter figiures reiterated guidance for full-year rental revenues growth of up to 4%.
Asset manager M&G fell 2.1p to 254.7p despite reporting £2.1 billion net flows from open business alongside an improvement in half-year adjusted profit.
The biggest faller in the FTSE 100 was Pearson, which dropped 4% or 43p to 1042.5p after Goldman Sachs trimmed its price target to 1490p.
In the FTSE 250, Watches of Switzerland jumped 7% or 22.8p to 341.6p after a trading update by the Rolex and Cartier retailer provided reassurance over the impact of US tariffs.
Hilton Food shares skidded 20% or 161p to 661p after it said higher seafood prices had resulted in lower demand for white fish from UK shoppers.
Chancellor sets date of autumn Budget
09:57 , Graeme EvansRachel Reeves has announced that she will present her autumn Budget on Wednesday November 26.
The Office for Budget Responsibility (OBR) will be given the required 10 weeks’ notice to provide an independent forecast.
The Chancellor will seek to prioritise reducing inflation, keeping public spending under control by meeting her fiscal rules and kick-starting economic growth, it is understood.
Bond market pressure continues, FTSE 100 rallies
09:22 , Graeme EvansBond market pressure continued today after the yield on 30-year UK gilts initially climbed another five basis points to peak at a fresh 27 year high of 5.749%.
A subsequent retreat towards last night’s closing level meant the FTSE 100 index recovered from an uncertain start to stand 31.81 points higher at 9148.50.
Global bond yields have jumped in recent days, largely because investors are demanding a higher return to lend to countries with heavy borrowing needs.
Richard Carter, head of fixed interest research at Quilter Cheviot, said: “The UK has not been immune. While much of the attention has been on the 30-year yield hitting multi-decade highs, governments typically borrow across the maturity spectrum and the rise in shorter to medium-dated has been less pronounced.
“But higher borrowing costs for the state mean it becomes more expensive to finance existing debt and harder to fund new spending.”
Food supplier Bakkavor cautions over rising costs
08:53 , Graeme EvansFresh food supplier Bakkavor today flagged £65 million of rising commodity and wage costs as it prepares to be taken over by rival Greencore in a £1.2 billion deal.
The London-based group said the cost inflation impact would be higher than the £50 million pencilled in for the full year, driven by price hikes for “certain key commodities”, such as dairy products, and a rising wage bill.
The group raised its full-year earnings guidance, despite reporting that underlying earnings fell by nearly a third in the first half, down 32% to £37.5 million in the six months to June 28.
FTSE 100 surrenders initial gain, watches retailer rallies
08:32 , Graeme EvansThe FTSE 100 index has fallen back after a positive start to the session.
London’s top flight fell 0.9% on Tuesday and is down another 6.13 points at 9110.56, having risen 0.2% or 15 points in opening dealings.
The uncertain performance came amid ongoing bond market pressure after the UK’s 30-year gilt yield continued its climb to reach 5.736%.
Sunbelt plant hire business Ashtead rose 92p to 5468p following the release of its first quarter trading update, but M&G dipped 3.8p to 252p on half-year results.
Babcock International shares rose 11p to 1043p after the Financial Times reported that the UK government is in talks with Denmark and Sweden over a contract to build Type-31 frigates at the contractor’s site in Rosyth, Scotland.
In the FTSE 250 index, Watches of Switzerland jumped 7% or 21.7p to 340.5p after the Rolex retailer issued a reassuring update on the impact of tariffs.
Watches of Switzerland backs guidance despite tariffs
07:28 , Graeme EvansWatches of Switzerland today reported “consistently strong trading”, adding that it does not expect a material impact from US tariffs in the first half of its financial year.
The UK’s largest retailer for Rolex, OMEGA and Cartier said its performance has been in line with guidance given alongside annual results in July.
Shares came under fresh pressure last month after President Trump announced 39% tariffs on Swiss exports.
However, the company said brand partners built inventories during July after noting a 45% year-on-year increase in Swiss watch exports.
WoS, which trades as Goldsmiths and Mappin & Webb in the UK, added: “We have seen consistently strong trading throughout the period, particularly in the US despite the announcement of increased tariffs on Swiss imports.
“The stability we saw in the UK luxury watch and jewellery markets during the second half of the 2025 financial year has continued, and we have delivered good year on year growth.”
The company added it was delighted with the success of its flagship Rolex Boutique on Old Bond Street, London, which is exceeding its expectations.
Thames Water creditors outline £20.5bn spending plan
07:11 , Graeme EvansA group of Thames Water lenders have set out plans on how they would deliver £20.5 billion of investment to turn around the troubled supplier’s performance.
The supplier’s main creditors – led by a team of 15 investors called the London & Valley Water consortium – have pledged to “fix the foundations” of Thames Water with the mammoth spending proposal put forward to regulator Ofwat.
The creditors are looking to secure backing for their plans to avoid Thames Water being put into a temporary special administration regime (SAR), which would effectively wipe out their investments.
FTSE 100 seen flat, gold price at record level
07:03 , Graeme EvansThe FTSE 100 index is set for a steadier performance after London’s top flight posted its largest one day decline since April in yesterday’s session.
The reverse, which extended losses to five of the past six days, came as global bond markets weakened on the back of fears over mounting government debt levels.
The UK long-term gilt yield topped 5.7%, the highest level since May 1998 as pressure increased on Chancellor Rachel Reeves ahead of the November budget.
Financial markets are set for a calmer start to today’s session after Wall Street shares steadied in dealings yesterday evening.
The Dow Jones Industrial Average eventually finished 0.6% lower, while the S&P 500 index lost 0.7% and Nasdaq Composite 0.8%.
The FTSE 100 index, which fell 0.9% or 79.65 points to 9,116.69 in yesterday’s session, is forecast to open broadly flat this morning. The domestic-focused FTSE 250 fell 2.2% on Tuesday.
Meanwhile, the gold price remains in record territory at $3528 an ounce.
