London close: FTSE 100 hits another record ahead of BoE vote

5th Nov 2025 11:19

(Sharecast News) - UK stocks rallied in afternoon trade following a subdued start to the day, with the Footsie setting yet another record high amid rising speculation that the Bank of England could buck expectations to cut interest rates this week.

Markets across Europe were also given a boost by a solid start on Wall Street, following better-than-expected data on the US labour market, easing macro concerns about the world's largest economy. Economic data closer to home also helped sentiment, with the UK services sector having grown more than anticipated in October.

The FTSE 100 finished 0.6% higher at 9,777.08, topping the previous closing high of 9,760.06 reached last Thursday, as attention started turning towards Thursday's Monetary Policy Committee meeting in London.

"Over the last couple of weeks, markets have been pricing in a bigger chance the Bank of England will cut interest rates when it meets tomorrow. The odds are still firmly in favour of a hold, but the market now gives a one in three chance to base rate being 3.75% by the end of Thursday," said Danni Hewson, head of financial analysis at AJ Bell.

"It's possible Rachel Reeves' surprise press conference on Tuesday was partly a cry for help to the Bank of England. By promising to push down on inflation, she might have been signalling that the Bank didn't have to wait until after the Budget to cut rates. Whether they do or not is a finely balanced call."

In economic data, the S&P Global UK services PMI business activity index was 52.3 last month, up on September's 50.8 and comfortably ahead of consensus and the flash reading, both 51.1. A reading below the neutral 50.0 benchmark suggests contraction but one above it indicates growth.

Respondents said they had seen a "gradual" turnaround in new work and sales opportunities during the month, despite ongoing uncertainty among clients. Domestic demand was particularly strong.

Ceres powers ahead, Coca-Cola Europacific gains

FTSE 250 clean energy technology developer Ceres Power was the standout performer of the day, surging 18% after signing a manufacturing licence agreement for the production of its proprietary solid oxide fuel cell technology with China's Weichai Power.

Blue chip Coca-Cola Europacific gained as it reiterated its full-year guidance following a "solid" third quarter, with a small rise in volumes and revenue despite a softer global market.

Engineering firm Weir Group fell as it reiterated its full-year guidance despite "elevated levels of uncertainty" related to critical metals disputes and further tariffs between the US and China.

Scottish Mortgage Investment Trust was weaker due to its exposure to the US tech sector, amid worries about an AI bubble.

TP Icap Group fell sharply despite reiterating its full-year guidance, saying that favourable market conditions helped boost third-quarter revenues at the broker.

Market Movers

FTSE 100 (UKX) 9,777.08 0.64%

FTSE 250 (MCX) 22,094.38 0.45%

techMARK (TASX) 5,557.90 -0.47%

FTSE 100 - Risers

Burberry Group (BRBY) 1,205.00p 3.12%

InterContinental Hotels Group (IHG) 9,552.00p 2.60%

Whitbread (WTB) 2,869.00p 2.46%

British American Tobacco (BATS) 4,142.00p 2.27%

Coca-Cola Europacific Partners (DI) (CCEP) 6,830.00p 2.25%

IMI (IMI) 2,402.00p 2.13%

Metlen Energy & Metals (MTLN) 46.35p 2.09%

Imperial Brands (IMB) 3,140.00p 2.05%

Aviva (AV.) 677.20p 1.87%

BP (BP.) 461.30p 1.80%

FTSE 100 - Fallers

Flutter Entertainment (DI) (FLTR) 16,385.00p -3.50%

Smurfit Westrock (DI) (SWR) 2,729.00p -3.12%

Smith & Nephew (SN.) 1,393.50p -1.69%

Babcock International Group (BAB) 1,193.00p -1.65%

Scottish Mortgage Inv Trust (SMT) 1,134.50p -1.60%

JD Sports Fashion (JD.) 84.60p -1.40%

Fresnillo (FRES) 2,146.00p -1.20%

WPP (WPP) 268.90p -1.10%

Entain (ENT) 753.40p -1.10%

Convatec Group (CTEC) 242.60p -0.98%

FTSE 250 - Risers

Ceres Power Holdings (CWR) 368.00p 17.65%

Bluefield Solar Income Fund Limited (BSIF) 76.90p 6.51%

Aston Martin Lagonda Global Holdings (AML) 61.70p 5.65%

Trainline (TRN) 267.20p 5.03%

4Imprint Group (FOUR) 3,355.00p 4.52%

Me Group International (MEGP) 194.40p 4.52%

Lancashire Holdings Limited (LRE) 672.00p 4.02%

Clarkson (CKN) 3,600.00p 3.30%

Energean (ENOG) 991.50p 3.01%

Greggs (GRG) 1,614.00p 2.93%

FTSE 250 - Fallers

Playtech (PTEC) 235.00p -5.05%

TP Icap Group (TCAP) 251.00p -4.20%

Oxford Biomedica (OXB) 660.00p -3.23%

QinetiQ Group (QQ.) 461.00p -3.03%

Victrex plc (VCT) 620.00p -2.97%

Avon Technologies (AVON) 1,874.00p -2.50%

B&M European Value Retail S.A. (DI) (BME) 168.40p -1.81%

OSB Group (OSB) 526.00p -1.68%

Watches of Switzerland Group (WOSG) 392.60p -1.55%

Baillie Gifford Japan Trust (BGFD) 919.00p -1.50%