UK's FTSE 100 muted as GSK, Unilever losses temper bank gains after budget
EWU•The FTSE 100 closed 0.1% higher as gains in banks after a lower-than-feared levy were tempered by declines in GSK and Unilever after their results disappointed. The FTSE 250 fell 0.3%.
1. Banks lift the FTSE 100
UK shares closed subdued on Wednesday after gains in banks following finance minister John Healey's budget were offset by losses in GSK and Unilever. The FTSE 100 rose 0.1%, while the FTSE 250 fell 0.3%, reversing an earlier rise to a near two-month high. Banks gained 1.1% as Healey raised the bank profit surcharge to 6% from 3% for 15 months, less than investors had feared.
2. Stocks diverge after budget
Standard Chartered rose 2.4% after raising its full-year growth and profitability targets following third-quarter income that beat estimates. Entain gained 3.6% and Evoke 3.7% after the gambling tax increase was smaller than feared. Homebuilders fell 6%, their biggest one-day drop since January 2025, amid a lack of clarity on the timeline and funding for a first-time homebuyer scheme. Taylor Wimpey, Persimmon and Barratt Redrow each lost more than 6.5%.
3. GSK and Unilever fall
GSK dropped 4.8% as its pipeline-building push and growth plans, including a £1.9 billion cost-saving programme, failed to convince investors. Unilever fell 2.1% after softer results in its foods business. Investors were also watching for the Federal Reserve's rate decision and earnings from large US technology companies, while assessing the budget's implications for the Bank of England's rate path.
