Stock Market Index FTSE 100 Finishes Up Due to Strength in Banks and Industrials Sectors

In the world of UK markets, a mix of gains and losses was observed on Tuesday, with the FTSE 100 inching up by 0.1%, closing at 7,406.1 points.

Unilever experienced a dip of 1.5%, while HSBC and Deutsche Bank revised their forecasts for Bank of England (BoE) interest rate cuts, signalling a potential pause in the monetary easing trend. On the other hand, Ashtead rose 1% and Fresnillo gained 2.8%, offering some positive momentum.

The banking sector saw a boost, with Standard Chartered, NatWest, and Barclays emerging as top performers. Precious metal miners also advanced, reflecting a broader trend in commodity markets.

However, not all sectors fared well. Phoenix Group fell 7.6% following a larger-than-expected decline in book value. The company, which is set to rebrand as Standard Life in March 2026, also announced that private equity firm KKR has joined the formal sales process, although no offer has been made as of yet. Meanwhile, London-based real estate investor Long Harbour has maintained its proposal to acquire PRS REIT for £631.6 million, subject to financing and due diligence. As a result, PRS REIT saw a 5.5% rise.

Elsewhere, Rolls-Royce increased by 1.6%, Burberry gained 3.7%, and Diageo lost 3.6%. Marks & Spencer rose 2.9% after its latest earnings report, while Vistry gained 1.7% following a joint venture partnership with Homes England.

The BoE is expected to hold rates steady at its policy meeting next week, offering some stability in the face of ongoing economic uncertainties. Hiring continued to slow in July, with British employers offering the lowest pay settlements in more than three-and-a-half years.

In the broader market, the mid-cap index .FTMC added 0.5%, and beverages lost 2.4%. Experian gained 1.5%, while AstraZeneca edged 0.9% lower.

Businesses are expressing concerns about another round of tax rises in Rachel Reeves' November 26 budget, which could potentially impact market sentiment in the coming weeks.

Stock Market Index FTSE 100 Finishes Up Due to Strength in Banks and Industrials Sectors