UK stocks slip as banks and commodity-linked stocks weigh
EWU•The FTSE 100 fell 0.29% to 10,733.00 points, while the FTSE 250 slipped 0.06% to 24,364.76. Banks and commodity-linked stocks weighed on the market as resilient labour-market data kept expectations alive for a Bank of England rate hike next month.
1. Indexes end lower
Britain’s FTSE 100 ended down 0.29% at 10,733.00 points on Tuesday, and the FTSE 250 fell 0.06% to 24,364.76. Banks declined 0.8%, with HSBC, Lloyds and NatWest down between 0.8% and 1.2%; energy stocks also fell, as BP lost 1.7% and Shell 0.7%.
2. Rate expectations persist
Pay growth edged up and payrolls rose in September, showing signs of recovery in Britain’s jobs market and bolstering the case for a rate increase at the Bank of England’s November meeting. Traders have almost fully priced in a quarter-point rate rise next month.
3. Sector moves diverge
The basic resources index fell 1.6%, while Anglo American dropped 2% after maintaining its 2026 copper production guidance despite a 5% fall in third-quarter output. Utilities rose 1.5%, with National Grid up 1.8%; Ocado gained 6.6% after J.P. Morgan raised its price target to 460 pence from 290 pence, and homebuilders rose 3.3%. Finance Minister John Healey reportedly rejected calls to raise capital gains tax ahead of the October 28 budget.
