London midday: FTSE surges as banks and miners rally

4th Nov 2026 10:58

(Sharecast News) - London stocks had surged by midday on Wednesday, with banks and miners pacing the advance as investors mulled the Democrats' sweeping victory in the US midterm elections.

The FTSE 100 was up 1.2% at 10,767.79. At the same time, sterling hit a seven-week high against the dollar, which fell against a number of currencies after the so-called blue tsunami.

Russ Mould, investment director at AJ Bell, said: "Investors are trying to get their heads around what a Democrat landslide in the US mid-term elections means for financial markets, with an initial stock sell-off quickly turning into gains.

"Theoretically, a divided government can create gridlock for policy changes, but there is a school of thought that Democrats may prioritise pushing through AI regulation.

"Given that AI has been the key to considerable stock market wealth creation in recent years, the prospect of red tape could put the brakes on this hot investment theme. However, a positive market reaction implies that certain investors are welcoming the potential that Trump's political power may be curbed somewhat.

"The big risk is uncertainty around how Trump could act in the coming months following such a result. Gold jumped 2.7% to $4,038 per ounce, which suggests that investors have added a little protection to their portfolio as a 'just in case' precaution. The precious metal may also be responding to incipient fears that the Democrats may go on a spending spree if they get the chance.

"Brent crude nudged 0.3% higher to $103.88 per barrel, perhaps reflecting how Trump may now focus more on foreign policy, where he could have more sway than over domestic matters, and ratchet up tensions with Iran as a result. Higher commodity prices also gave a boost to the FTSE 100 where oil producers and miners led the charge alongside banks."

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.

Tim Moore, economics director at S&P Global Market Intelligence, said: "October data highlighted a combination of faster output growth and stronger price pressures across the UK service economy, mirroring the trends in the manufacturing sector. These signals underscore the near-certainty of a Bank of England rate hike in November and collectively raise the likelihood of further Bank of England policy tightening into 2027.

"Service providers signalled the fastest upturn in activity since February and another solid rebound in new orders, suggesting increasing economic resilience despite challenges from geopolitical tensions, elevated cost pressures and subdued consumer confidence. Greater workloads were attributed to an improved pipeline of sales opportunities, particularly those linked to AI investment spending.

"Business activity expectations for the year ahead also picked up in October, reaching an eight-month high amid signs of receding risk aversion and more positivity towards near-term customer demand. This contributed to a renewed expansion of employment numbers, but the pace of job creation was only marginal as firms noted efforts to control costs and prioritise efficiency gains where possible."

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.

However, on a two-year basis, profits remained below 2024/25's interim income of £413.1m, as strong demand for M&S's food offering failed to offset weaker conditions in clothing.

Smith & Nephew also reversed earlier losses, to trade a touch higher, 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.

Trainline dipped as it backed its full-year guidance but posted flat first-half ticket sales and a dip in group revenue.

Market Movers

FTSE 100 (UKX) 10,767.79 1.22%

FTSE 250 (MCX) 24,879.60 0.83%

techMARK (TASX) 6,273.06 -0.34%

FTSE 100 - Risers

Lion Finance Group (BGEO) 13,010.00p 7.60%

Fresnillo (FRES) 2,437.00p 6.74%

Antofagasta (ANTO) 3,294.00p 5.07%

Standard Chartered (STAN) 2,156.00p 5.07%

Marks & Spencer Group (MKS) 432.10p 4.56%

HSBC Holdings (HSBA) 1,314.40p 4.53%

Barclays (BARC) 436.85p 4.17%

Anglo American (AAL) 3,863.00p 4.09%

NATWEST GROUP (NWG) 602.20p 3.86%

Lloyds Banking Group (LLOY) 97.28p 3.82%

FTSE 100 - Fallers

Weir (WEIR) 2,426.00p -7.69%

BAE Systems (BA.) 1,993.00p -4.02%

Ithaca Energy (ITH) 273.50p -2.24%

Babcock International Group (BAB) 1,024.50p -1.58%

Computacenter (CCC) 4,960.00p -1.57%

Spirax Group (SPX) 7,365.00p -1.34%

Diploma (DPLM) 7,165.00p -0.62%

Bunzl (BNZL) 2,844.00p -0.56%

Unilever (ULVR) 4,839.50p -0.53%

London Stock Exchange Group (LSEG) 9,416.00p -0.38%

FTSE 250 - Risers

Ceres Power Holdings (CWR) 302.00p 10.55%

Hochschild Mining (HOC) 463.00p 7.66%

Endeavour Mining (EDV) 3,785.00p 6.58%

Pan African Resources (PAF) 111.10p 6.33%

TBC Bank Group (TBCG) 4,884.00p 5.39%

Shawbrook Group (SHAW) 294.25p 3.98%

BlackRock World Mining Trust (BRWM) 873.00p 3.69%

Close Brothers Group (CBG) 401.40p 3.56%

Rank Group (RNK) 93.80p 3.53%

Helios Towers (HTWS) 212.00p 3.41%

FTSE 250 - Fallers

QinetiQ Group (QQ.) 532.00p -3.18%

Avon Technologies (AVON) 2,435.00p -2.79%

Chemring Group (CHG) 544.50p -2.77%

EnQuest (ENQ) 28.90p -2.36%

Wetherspoon (J.D.) (JDW) 1,006.00p -2.33%

Vistry Group (VTY) 276.80p -2.33%

Serco Group (SRP) 285.60p -2.33%

Diversified Energy Company (DI) (DEC) 1,010.00p -2.13%

Discoverie Group (DSCV) 825.00p -1.55%

Dunelm Group (DNLM) 883.00p -1.40%