(Sharecast News) - UK stocks jumped on Wednesday, with London's FTSE 100 hitting its highest in nearly three weeks as risk appetite soared in the aftermath of the Democrats' resounding success in the US mid-term elections and a big tumble in the price of oil
The Footsie finished the session 1.8% higher at 10,829.21, tracking gains across Europe and the US, with big gains from banking, financial and mining stocks, alongside well-received updates from blue chips Smith & Nephew and Marks & Spencer.
New York's Dow Jones Industrial Average surged 1,500 points (+2.9%) in morning trade as investors reacted to the Democratic Party's landslide victory in the mid-term elections.
With the Democrats now in control of both the House and the Senate, many anticipate greater constraints on Donald Trump's legislative and foreign policy agendas, particularly given how the Iran war and higher fuel prices factored into voting across the country.
"Macro sentiment shifted decisively as investors digested the results of the US mid-term elections, where Democrats took control of both houses of Congress," said Patrick Munnelly, partner of market strategy at Tickmill Group.
"The unexpected sweep relieved immediate market concerns surrounding unilateral trade escalation, aggressive tech disruption, and runaway federal deficit expansions."
Meanwhile, oil prices dropped nearly 9% as investors grappled with how the mid-term election results may impact diplomatic efforts between Washington and Tehran, hoping that political constraints on Trump may bring about the end of the war. Front-month Brent crude was down over $9 at $94.25 a barrel by the close, hitting its lowest since early September.
On home turf, a survey showed that growth in the services sector hit an eight-month high in October. The S&P Global services PMI business activity index rose to 52.8 from 52.1 in September, reaching its highest level since February. A reading above 50.0 signals expansion, while a reading below indicates contraction.
The composite output index - which includes the services and manufacturing sectors - ticked up to 52.9 in October from 52.0 the month before, marking the highest reading since February.
In equity markets, Lion Finance Group, formerly Bank of Georgia Group, surged to the top of the FTSE 100 after the lender reported a 21% jump in third-quarter profits and announced an increase in its dividend alongside a further share buyback.
Miners Antofagasta and Anglo American rallied, along with banks Standard Chartered, HSBC, Barclays and Lloyds.
Gold miners Fresnillo, Hochschild and Endeavour also shone as gold prices breached $4,000 an ounce as the dollar and US Treasury yields fell on the Democrat sweep.
Marks & Spencer reversed earlier losses to trade up after half-year results. The retailer posted a surge in half-year profits as it rebounded from 2025's devastating cyber attack. Sales in the 26 weeks to 26 September jumped 16.2% to £9.26bn, while adjusted pre-tax profits soared to £403.2m from £184.1m a year previously.
Smith & Nephew also gained even as the medical technology group cut its full-year guidance due to weaker-than-expected growth in its US Orthopaedics business.
On the downside, Weir Group slumped despite reporting an 8% jump in third-quarter group orders and saying it was on course to meet market expectations for the full year.
Defence stocks BAE Systems, Babcock, QinetiQ and Chemring retreated amid expectations the outcome of the US midterms would lead to lower spending on defence.
Market Movers
FTSE 100 (UKX) 10,829.21 1.79%
FTSE 250 (MCX) 24,915.69 0.98%
techMARK (TASX) 6,325.21 0.49%
FTSE 100 - Risers
Fresnillo (FRES) 2,448.00p 7.09%
Smith & Nephew (SN.) 1,190.00p 6.49%
Marks & Spencer Group (MKS) 440.70p 6.40%
Associated British Foods (ABF) 2,021.00p 6.37%
St James's Place (STJ) 1,145.00p 5.92%
Airtel Africa (AAF) 278.60p 5.69%
NATWEST GROUP (NWG) 611.00p 5.34%
Burberry Group (BRBY) 1,116.00p 4.99%
Autotrader Group (AUTO) 570.80p 4.81%
HSBC Holdings (HSBA) 1,318.20p 4.79%
FTSE 100 - Fallers
Weir (WEIR) 2,378.00p -9.51%
Ithaca Energy (ITH) 258.20p -8.11%
Computacenter (CCC) 4,824.00p -4.38%
BAE Systems (BA.) 1,988.00p -4.19%
BP (BP.) 571.60p -2.92%
Diploma (DPLM) 7,045.00p -2.42%
Shell (SHEL) 3,795.50p -1.85%
Spirax Group (SPX) 7,340.00p -1.74%
Balfour Beatty (BBY) 861.50p -1.32%
Smiths Group (SMIN) 2,677.00p -1.25%
FTSE 250 - Risers
Shawbrook Group (SHAW) 302.50p 9.45%
Hochschild Mining (HOC) 461.40p 7.05%
Endeavour Mining (EDV) 3,778.00p 6.21%
Pan African Resources (PAF) 110.70p 6.14%
Trustpilot Group (TRST) 272.40p 5.91%
Mony Group (MONY) 217.20p 5.74%
Rightmove (RMV) 563.80p 4.72%
Wizz Air Holdings (WIZZ) 1,053.00p 4.46%
Ocado Group (OCDO) 336.00p 4.28%
WH Smith (SMWH) 447.00p 4.20%
FTSE 250 - Fallers
EnQuest (ENQ) 27.85p -5.91%
Discoverie Group (DSCV) 791.00p -5.83%
Renishaw (RSW) 4,980.00p -5.50%
XP Power Ltd. (DI) (XPP) 1,640.00p -4.76%
Hill and Smith (HILS) 2,880.00p -4.00%
RS Group (RS1) 760.00p -3.61%
Avon Technologies (AVON) 2,420.00p -3.39%
Harbour Energy (HBR) 280.00p -3.11%
Volex (VLX) 549.00p -3.00%
Morgan Advanced Materials (MGAM) 259.00p -2.81%