- FTSE 100 rises 71 points to 9,555
- Index hit new intraday high of 9,577.08
- Lloyds rises as motor finance compensation less than expected
- Gold price smashes past $4K an ounce
4.38pm: Record day for FTSE
The FTSE 100 finished Wednesday’s session up 65 points at 9,548 points.
"Recent trading has seen the FTSE 100 driven higher by a rotating cast of sectors, today’s drivers being banks and miners, long the stalwarts of the London market," IG chief market analyst Chris Beauchamp said.
"UK, European and US bourses have advanced in lockstep as investors continue to pile into risk assets."
4.14pm: FTSE head held high
It's been another good day for the FTSE 100, striding 0.7% higher thanks to gains for copper and precious metals miners, as well as lenders, Lloyds in particular.
Only five shares of the index's largest 40 companies are in the red (Shell, BAT, National Grid, Tesco and AB Foods).
Investors have been keeping an eye on trade developments as Prime Minister Keir Starmer embarked on a two-day visit to India, says market analyst Patrick Munnelly at Tickmill.
He notes that the PM "emphasised the need to implement the trade deal agreed upon in July as quickly as possible".
Following last week string of record highs in four out of five trading sessions, fuelled by a resurgence in healthcare stocks, today's gains were from a wider array of names, Munnelly noted.
The FTSE 250 index is flat, held back by the real estate sector, he said.
Chris Beauchamp at IG said the BoE's warning about a potential correction "failed to halt the risk-on atmosphere", which has seen gains in European and US stocks, along with oil, metals, bitcoin and the dollar too, confirming the "broad nature of the recent gains".
He also noted that French stocks have recouped almost all the losses seen earlier in the week, "though the atmosphere in French politics remains febrile".
3.17am: City vote tension builds
WH Ireland Group PLC (AIM:WHI), a well-known name in the City, shares rebounded 200% earlier today, as the company noted press speculation about proxy voting for the upcoming shareholder vote over the sale of its wealth management arm.
Current levels of proxy investor votes on the sale "indicate that the resolutions will fail", though buyer Oberon Investments Group PLC (AQSE:OBE) says in its own statement that is keen to work out a way of making the deal work.
WHI stressed that the "outcome of the upcoming general meeting will not be known until the meeting has been held".
Oberon, meanwhile, said if the vote to approve the sale is not passed tomorrow, it "remains committed to working constructively with WH Ireland to pursue a successful outcome that serves the best interests of clients, staff, and stakeholders of both businesses".
Sky News reported that its sources indicated other buyers had expressed interest in acquiring the division, "but said WH Ireland's directors had made it clear that they would be unable to share material information about it with rival suitors".
WH Ireland's biggest shareholders include Guernsey-based TFG Asset Management, which owns 29.9%, and former Punch Group and PizzaExpress director Hugh Osmond, with a 9.9% stake, and serial investor Melvin Lawson, with 9.7%.
2.50pm: Nasdaq and S&P climb
A mixed start on Wall Street.
On one side, the Dow Jones is down 0.2%, and on the other, the S&P 500 has risen 0.15% and the Nasdaq is up 0.45%.
Nvidia is up almost 2%, boosting the latter, though half the Mag 7 tech giants are in the red.
Dragging down the Dow, there are falls for Salesforce, IBM, Goldman Sachs, Chevron and Coca Cola.
2.42pm: UK drug pricing tweak
UK government ministers have a plan to step up how much the National Health Service pays pharmaceutical firms for drugs, according to a report in Politico.
This comes as President Trump has launched tariffs against the pharma sector, while several drug makers have recently cancelled major UK investment projects.
The National Institute for Health and Care (NICE) threshold would be raised under the plan by as much as 25%, making more expensive drugs available for patients and stepping up how much the NHS will pay overall.
The threshold measures whether a medicine offers good value for money, with the current level being that a cost of £20,000-30,000 for every extra year of good-quality life for a patient considered good value.
2.20pm: Great Portland at a discount
Leasing activity is gathering pace at Great Portland Estates (LSE:GPOR), the London developer, which signed £17 million of new rent in the second quarter at 7.5% ahead of the estimated rental value.
A first-half total of £38 million matched last year’s full-year figure, with demand remaining strongest for the company’s fully managed offices, spaces where Great Portland provides services such as fit-out and flexible leases.
Deutsche Bank analyst Max Nimmo says improving investment market liquidity should allow Great Portland to recycle capital into new projects, but highlighted that the shares still trade at roughly a 40% discount to net tangible assets, a steep markdown for a landlord delivering solid leasing momentum.
1.57pm: Nvidia and Boeing comments
Some comments on the wires coming through.
Nvidia CEO Jensen Huang has confirmed the investment in Musk's Xai.
He also said demand for the company’s new Blackwell chips is "really, really high" as data centre 'hyperscalers' and enterprise clients seek its greater efficiency for AI training.
But Huang cautioned that the US is "not far ahead" of China in AI.
Elsewhere, Ryanair CEO Michel O'Leary has told media that Boeing has expressed confidence that its Max 7 and Max 10 will receive certification next year.
And he says Boeing therefore expected to get approval to start turning out 48 of its more fuel-efficient 737 jets per month by next March.
1.13pm: FTSE on a tear
The FTSE 100 is on a stormer today, up 80 points or 0.85% on the day and over 3.7% over the past month, as well as almost 16% since the start of the year.
Powering the gains are a mix of miners, retailers and financials.
Top of the leaderboard is Antofagasta PLC (LSE:ANTO), up 3.6% as the copper price continues its recent momentum. Anglo American is also on the leaderboard, up 2.4%.
Next is Marks and Spencer Group PLC (LSE:MKS), up 2.8%, which comes a day after the retailer provided an update on the shake-up of its retail estate, with 11 cafes to be closed in order to create space for a wider range of popular products.
Lloyds is up 2.7% on the FCA motor finance update, Rentokil Initial is adding to recent gains, while other banks not really connected to the motor lending sector are also on the up, including NatWest and Standard Chartered.
Precious metals miners Endeavour and Fresnillo are also doing their bit, thanks to the ever elevating gold price.
Analysts at RBC Capital Markets have highlighted that while global gold equities surged more than 120% in the third quarter, UK-listed names have lagged.
They think the real interest now lies in how miners use their windfall, with Fresnillo and Hochschild Mining both due to report this month with free cash flow in focus.
Across the sector, producers are on track for a 7% earnings rise and a 22% jump in free cash flow, despite a 3% increase in all-in sustaining costs to $1,638 an ounce, which RBC expects to feed buybacks and debt reduction.
The FTSE 250, now in positive territory for the day thanks in part to gains at Hochschild, is up 1.6% over the past month and 6.7% so far this year.
Quilter, IP Group and Diversified Energy Company are top risers among London mid-caps.
Analysts at RBC have been pondering this week whether Lloyds could buy Quilter to bolster its wealth management arm.
The broker suggested that the imminent rollout of the Financial Conduct Authority’s “Targeted Support” regime could give Lloyds both the motive and opportunity to buy a wealth manager.
12.39pm: US futures positive
US equity futures are modestly positive with just under two hours to go until the opening bell.
Futures for the Dow Jones are up 0.2%, while those for the S&P 500 and Nasdaq are both up around 0.1%.
As a reminder, Wall Street saw selling overnight after a positive start, led by the tech-heavy Nasdaq's 0.7% decline, while the S&P dropped 0.4% and the Dow 0.2%.
The dollar index is higher for the third consecutive session, up 0.3% to 98.8, rallying to the highest since August 11.
WTI crude oil futures are 1.1% higher at $62.41.
"In the absence of any significant data to offer markets direction, the belly of the curve led Treasury yields lower yesterday, largely just reversing Monday's modest rise in yields," says analyst John Canavan at Oxford Economics.
US government bond yields were 2bps to 3bps lower ahead of the close after having been 3bps to 4bps lower at the day's peak early in the afternoon.
"A pullback in equities may have lent Treasuries a small safe-haven bid, and the day's best levels were reached following the afternoon's strong three-year Treasury note auction, before yields eased a little off the lows over the rest of the afternoon."
He notes that trading in London has been supported as gilt yileds have dropped after the HM Revenue and Customs error in calculating VAT receipts, which reduced the UK borrowing figures for the first five months of the fiscal year.
"The spill over support helped to push Treasury bond yields 3bps lower as the curve flattened, with two- and three-year yields declining less than 1bp."
"Firmer US equity index futures and a break above $4,000/oz for gold has done nothing to dent the modest Treasury support, with yields still pinned near the lows of the night ahead of the open of trading in the US."
11.31am: BoE warning on AI
The Bank of England has warned there is a growing risk of a "sharp market correction" globally from soaring valuations of AI tech giants.
A Financial Policy Committee update said: "The risk of a sharp market correction has increased" with a "material" risk of spillovers to London and other global financial markets.
If the US Federal Reserve loses credibility in the eyes of global investors it could lead to a "sharp repricing of US dollar assets", a reference to attacks by Donald Trump on chairman Jerome Powell and attempts to swap other members of its governing committee.
The FPC warned in its latest quarterly update that "on a number of measures, equity market valuations appear stretched, particularly for technology companies focused on artificial intelligence."
This leaves "equity markets particularly exposed should expectations around the impact of AI become less optimistic".
With the UK's open economy and a major financial centre in the Square Mile, "the risk of spillovers to the UK financial system from such global shocks is material".
10.55am: Stocks in spotlight but gold is the superstar
The FTSE is smashing through new record territory, but gold is grabbing more headlines as the spot price topped $4,000 per oz in trading last night and passed $4,040 this morning.
This meteoric rise of gold has seen the price of the yellow metal double in the last two years.
While some people are pointing to the ongoing US government shutdown or French politcal turmoil as a reason, but, says Steve Clayton, head of equity funds at Hargreaves Lansdown, both these things come along quite often.
"Either way, despite stock markets hitting new highs around the world in recent weeks, it looks like some investors are looking for a safe haven and chasing gold ever higher for now."
Both Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) and Fresnillo PLC (LSE:FRES) are around 2% better this morning.
While European markets have "a spring in their step," says Russ Mould at AJ Bell, gold has been "a superstar".
"Traditionally, investors would load up on the shiny stuff when markets look gloomy, not when they’re motoring ahead.
"It shows that investors are hedging their bets, particularly as there are growing concerns that euphoria around AI has gone too far and the bubble could burst at some point."
10.32am: Anglo surprise
On Anglo American, it is "never a good look when a takeover target comes out with bad news just after receiving a bid", says Russ Mould at AJ Bell.
In Teck’s case, the downgrade to copper production guidance "isn’t severe enough" to derail the tie-up with Anglo American, he says.
"Anglo implies it was already aware of operational challenges at one of Teck’s projects following due diligence on the company.
"While Anglo wasn’t privy to the downgraded guidance now announced following Teck’s operational review, it has implied to the market that the news isn’t a complete shock.
"The fact it says the strategic reasons behind the merger with Teck and associated synergies remain unchanged was enough to reassure investors, sending its shares higher.”
10.15am: Crypto ETFs ban lifted in UK
As well as the motor finance update last night, the FCA yesterday lifted its ban on retail access to bitcoin and ethereum-backed exchange-traded funds, reversing a ban from 2021.
HANetf research chief Tom Bailey describes the move as “a major shift,” noting that since 2021, retail investors in the UK have been restricted from purchasing crypto exchange-traded commodities (ETCs) via their usual investment platforms.
“Lifting the ban means investors are once again able to buy and hold crypto through their kind of regulated brokers,” he told my colleague Stephen Gunnion this morning.
Russell Barlow, CEO of 21Shares, agrees it is "a huge step for the UK" and there is "a great deal of pent-up demand for regulated cryptoasset products in the UK", pointing to research showing 12% of adults already holding cryptoassets directly through largely unregulated platforms and exchanges.
The lifting of the ban on crypto ETNs is a "great first step, allowing retail investors to get exposure to the two biggest cryptoassets in the most simple and secure way".
He anticipates that these will be eligible for inclusion into ISA and SIPP portfolios, but says "there is still some ways to go until cryptoassets across the board are accepted as part of the financial system".
9.49am: FCA redress needs to find balance
The FCA’s proposed redress scheme has "the potential to reshape the motor finance landscape", says Sushil Kuner, partner at law firm Freeths.
"However, the FCA is also clearly mindful of the lessons from the PPI redress programme, where overcompensation became a systemic concern.
"By embedding principles such as fairness, cost-effectiveness, and proportionality into the scheme’s design, the FCA is seeking to balance consumer protection with the need to maintain market stability and avoid undue financial strain on firms.
"The consultation period will be critical in refining this balance.
"Notwithstanding that, the FCA’s uncompromising stance on data availability and its suggestion that firms may need to work with third parties to reconstruct records signals a forensic approach to enforcement."
9.31am: FTSE 100 and European peers rise, London mid-caps slip
The FTSE 100 has continued to climb this morning, breaking above another milestone of 9,520 in recent minutes, up 0.3% so far today.
London's mid-cap FTSE 250 index is down 0.2% at 21,961.15, meanwhile.
Fallers include Unite Group, down 5.9% after the student accommodation developer reported lower rental growth for the 2025/26 academic year and room sales below its long-term target.
However, it has noted some encouraging trends, including a continued recovery in UK student numbers, with "particularly strong" growth for UK 18-year-olds and international applicants from China and the US.
Across in mainland Europe, the DAX is up over 0.3% in Frankfurt, while in Paris, the CAC 40 has jumped 0.8%.
Matthew Ryan, head of market strategy at Ebury, says there are "limited signs of contagion" from the French political saga that "shows no signs of abating".
He says President Macron faces another conundrum to break the current political deadlock, with "three options in descending order of likelihood: appoint France’s sixth prime minister in two years, call snap elections or resign."
At the time of writing, he says the spread between the 10-year yield in France and Germany, a gauge for the risk premium attached to French assets, has risen to 86 basis points, around the levels following the collapse of the Barnier government in late 2024.
"For now, there are limited signs of contagion, and as long as that remains the case, losses in the euro will likely be limited.
"This could change should the crisis deepen, or the big three agencies downgrade France’s credit rating."
8.55am: Close Brothers and Vanquis
Shares in Close Brothers are up 1.7%, while another motor finance lender Vanquis Banking Group PLC (LSE:VANQ) are down 0.3%.
Analyst Rae Maile at Panmure Liberum notes that the FCA text says that some non-prime lenders did not engage in discretionary commission or tied arrangements and therefore "are less likely to have to pay redress under the scheme".
He says that to avoid paying, these companies, such as Vanquis, will need to provide evidence that the borrower could not have secured a better loan offer elsewhere.
"Ironically one of the original test cases involved [Lloyds' motor finance lending arm] Black Horse advancing a loan to a customer turned down by a number of other lenders."
Maile says it remains unclear the exact application of the FCA proposals to any market participant, and therefore whether provisions established to date are adequate, "although that will not stop further speculation from many commentators".
"Whether any lender was 'better' or 'worse' than average is unclear from the outside, while market shares will have varied over the very long period being considered".
Costs to manage the process will be material, Maile adds, and will be deemed 'exceptional' by the companies but are "nonetheless real costs with real implications for capital. The distraction to management will continue for some further years."
With respect to Close Bros, the amount of provisions for redress of £165 million to date, at £700 per customer, would imply 236k customers, compared to Maile's previous estimate that over 1.2 million customers had been served, where 44% of which would be 528k.
8.28am: Lloyds motor finance provisions could be released
The FCA's estimate of motor finance compensation, published in its consultation paper, would have an impact of around £850 million on Lloyds, according to analysts at RBC Capital Markets.
For Santander UK it would be around £350 million, £80 million for Barclays and for Close Brothers Group PLC (LSE:CBG) the calulation is around £170 million.
This is more than most of the lenders have put aside, so implies provisions releases at Lloyds of around £300 million and for Close Bros of about £2 million, with "adequate provisioning" at Barclays BARC and provision top-ups expected for Santander and Bank of Ireland.
There is still also "some risk in our view that the final redress scheme and the FCA's definition of unfair gets challenged in the administrative courts", the RBC team added.
8.15am: FTSE 100 chalks up new record
The FTSE 100 has chalked up a new intraday record high in Wednesday's early trading, jumping to 9,517.27, less than a full point above its previous zenith.
After a quarter of an hour, the index has backed off slightly, up almost 21 points at 9,504.
Lloyds Banking Group PLC (LSE:LLOY) is top of the early leaderboard, up 2.75%,. as investors see the FCA redress announcement as good news, much less than some estimates.
Gold miner Endeavour is next, up 2.5%, as gold blasts past $4,000 an ounce, and is already sitting at $4,034/oz.
Then comes Anglo American after its statement on Teck, below, up just over 2%.
7.56am: Anglo American still keen on Teck merger
Anglo American PLC (LSE:AAL) said there were some unexpected elements in an operations update by Teck Resources overnight but it does not change the strategic rationale for the two companies' agreed merger.
The FTSE 100 miner said the outcome of Teck’s operational review and updated outlook is consistent with its own analysis undertaken ahead of the two companies’ merger agreement announced last month.
Anglo said that while some parts of the operational review were "not known at the time" that it agreed the merger, the findings are "broadly consistent" with its own independent due diligence and analysis, and the overall strategic rationale for the merger and expected synergies and timing "remain unchanged".
This included a slower ramp-up of the Quebrada Blanca (QB) mine in northern Chile’s Atacama Desert.
7.43am: ONS says budget deficit was wrong because of error
The UK's Office for National Statistics has flagged that the latest set of government borrowing figures contained an error that wrongly inflated the size of the public deficit.
So, a small bit of good news for Chancellor Rachel Reeves.
HM Revenue and Customs was at fault in this instance, with a mistake in the amount of value added tax (VAT) supplied to ONS that was used in its calculations of the current UK government budget deficit, which was published last month and showed the highest August figure in five years.
The error only affected the budget deficit and public sector net borrowing figures for the period between January and August 2025, ONS said.
7.27am: Motor finance redress 'better' news for lenders
The FCA motor finance redress approach is "towards the better end of expectations" for banks, says Deutsche Bank analyst Robert Noble.
He says the structure "seems sensible to us as a proactive but opt-in approach", with compensation limited to loans from 2007, with redress calculated as excess interest based on what the consumer actually missed out on.
Close Brothers Group PLC (LSE:CBG) and Lloyds Banking Group PLC (LSE:LLOY) are among the most exposed lenders, he said, noting that they did not change their provisions at results based on the previous Supreme Court ruling and FCA update in early August.
"We doubt that there will be much change post this update either as we take one more step towards the end of the motor saga."
7.15am: FTSE 100 called higher, motor finance in focus
The FTSE 100 is expected to climb towards new recent record highs on Wednesday, after the compensation ruling on UK motor finance mis-selling grabbed the overnight headlines.
On the futures market, London's blue-chip benchmark was called 17 points higher, adding to the gain of 4.44 points the day before that saw the index close at 9,483.58.
US stocks finished lower overnight, despite a positive start, led by with the tech-heavy Nasdaq's 0.7% decline, while the S&P 500 fell 0.4% and the Dow Jones lost 0.2%.
Also overnight, the UK Financial Conduct Authority estimated payouts on 14 million unfair motor finance agreements could start next year, with people receiving an average of around £700 per agreement, meaning lenders could pay out £8.2 billion in compensation.
This is less than even the bottom end of its initial estimate of between £9 billion and £18 billion, which was first given after the Supreme Court decision at the start of August.