11th Nov 2025 17:00
(Alliance News) - The FTSE 100 hit another record high on Tuesday as soft economic data firmed up rate cut bets ahead of December's Monetary Policy Committee meeting.
The FTSE 100 index closed up 112.45 points, 1.2%, at 9,899.60, a record closing peak. It had earlier set a new intra-day best level of 9,912.85, putting the 10,000 milestone within reach.
AJ Bell analyst Dan Coatsworth noted should the FTSE 100 hit 10,000 this year it would represent the fastest rise between 1,000 intervals ever, given the blue-chip index only passed 9,000 in July.
"It's been a historic year for the UK as the FTSE 100 has outperformed all the major US stock indices. Hitting 10,000 would be the cherry on top, proving to cynics that the UK market is not stuck in the mud," he added.
The FTSE 250 ended 181.61 points higher, 0.8%, at 22,149.88, and the AIM All-Share climbed 1.70 points, 0.2%, at 759.24.
The Cboe UK 100 was up 1.1% at 988.38, the Cboe UK 250 was 0.7% higher at 19,163.57, but the Cboe Small Companies eased 0.1% to 17,926.96.
The latest upward push for equities in London came as data showed the labour market continues to soften and wage growth cool.
The figures make a December rate cut from the Bank of England "increasingly likely," commented Joshua Mahony, analyst at Scope Markets.
"Today's job report out of the UK provided a perfect mix of factors that would push the MPC into a rate cut next month, with weakness in the employment situation coming alongside a decline in wage growth," he noted.
The data from the Office for National Statistics showed the UK unemployment rate rose to 5.0% in the three months to September, its highest since early 2021, from 4.8% in the three months to August.
The last time UK unemployment was at 5.0% was in the three months to February 2021, and it has remained below that level ever since.
The ONS said the number of payrolled employees fell by 117,000, or 0.4%, between September 2024 and September 2025, and decreased by 32,000 between August and September.
Meanwhile, figures showed wage growth slowed although it continued to outpace inflation.
Regular pay, excluding bonuses, grew by 4.6% in the three months to September, slowed from 4.7% in the prior three-month period. Total pay including bonuses rose by 4.8%, decelerated from 5.0%.
Annual average regular earnings growth was 4.2% for the private sector, down from 4.4% in the prior three month period, while in the public sector, it accelerated to 6.6% from 6.0%.
Deutsche Bank analyst Sanjay Raja said: "Big picture, bar any revisions, today's data speaks to two things: one, there's more slack building in the labour market – and perhaps more so than assumed by the MPC in its November projections; and two, pay momentum continues to slow. Both should be encouraging for the MPC."
The figures pushed the yield on 10-year UK gilts down by 8 basis points to 4.39% on Tuesday from 4.47% on Monday, although the pound held firm.
Sterling was quoted at USD1.3173 at the time of the London equities close on Tuesday, higher compared to USD1.3160 on Monday.
The euro stood at USD1.1594, up against USD1.1554. Against the yen, the dollar was trading slightly higher at JPY154.02, compared to JPY153.97.
In European equities on Tuesday, the CAC 40 in Paris closed up 1.3%, while the DAX 40 in Frankfurt advanced 0.5%.
In New York, the Dow Jones Industrial Average was up 0.5% at around the time of the London close.
The S&P 500 index was 0.2% lower, while the Nasdaq Composite declined 0.6%.
The yield on the US 10-year Treasury was at 4.12%, widened from 4.11% on Monday. The yield on the US 30-year Treasury was quoted at 4.71%, stretched from 4.70%.
On the FTSE 100, rate cut hopes lifted housebuilders Berkeley Group Holdings, Barratt Redrow and Persimmon, up 3.4%, 3.1% and 2.0% respectively.
Vodafone was the top blue-chip performer, up 8.3%, after announcing plans for its first dividend increase in seven years, a EUR500 million share buyback and a return to growth in its key German market.
"Whilst we have more to do, we delivered good strategic progress in the half year, driving further operational improvements across the business, expanding our customer satisfaction initiatives, and making a fast start in integrating the Vodafone and Three networks in the UK," said Chief Executive Margherita Della Valle.
Adjusted earnings before interest, tax, depreciation and amortisation and leases rose 5.9% to EUR5.73 billion from EUR5.41 billion, 2.1% ahead of Visible Alpha consensus, supported by growth in the UK, Turkey and Africa, and a return to top-line growth in Germany.
Service revenue grew by 8.1% to EUR16.33 from EUR15.11 billion the year prior, and increased by 5.7% on an organic basis.
"For years, Vodafone has been a stock market zombie flailing around with little apparent purpose but the transformation programme being delivered by CEO Margherita Della Valle has injected new life into the business," AJ Bell investment director Russ Mould said.
But retailers were on the back foot as data showed annual retail sales growth slowed in October as shoppers held off major spending ahead of the government's budget and the Black Friday sales period.
Data from the British Retail Consortium and KPMG showed annual total retail sales growth eased to 1.6% in October from 2.3% in September, though still above the 0.6% pace seen a year earlier.
Food sales growth decelerated to 3.5% in October from 4.3% in September, while non-food categories saw weaker demand as consumer confidence remained fragile.
Separate figures from Worldpanel showed grocery price inflation slowed to 4.7% in October, from 5.3% in September, as retailers rolled out discounts and Christmas deals.
Food retailers Tesco and J Sainsbury fell 2.9% and 2.0% respectively while Marks & Spencer slipped 4.6%.
Elsewhere Croda fell 0.8% as Jefferies downgraded to 'hold' from 'buy' and Goldman Sachs issued a 'sell' note.
On the FTSE 250, 4Imprint soared 18% as it set annual targets at the upper end of company-cited forecasts.
Pretax profit target is expected at a minimum of USD142 million, which 4imprint said was "above the upper end" of consensus.
But Hilton Food plummeted 23% after it said earnings in 2025 will be lower than market expectations and that it expects "profit progression in the next financial year to be difficult".
The Huntingdon, England-based food packaging company said its UK seafood division continues to be hurt by softer white-fish demand, driven by ongoing high raw material inflation and cautious consumer spending.
Gold traded higher at USD4,108.75 an ounce on Tuesday against USD4,091.42 on Monday.
Brent oil was quoted higher at USD65.19 a barrel at the time of the London equities close on Tuesday, from USD63.45 late Monday.
The biggest risers on the FTSE 100 were Vodafone, up 7.40 pence at 96.32p, WPP, up 16.10p at 303.00p, Berkeley Group, up 136.00p at 4,108.00p, Haleon, up 11.50p at 374.60p and Barratt Redrow, up 12.00p at 400.60p.
The biggest fallers on the FTSE 100 were Marks & Spencer, down 17.80p at 372.20p, Auto Trader, down 21.60p at 729.40p, Tesco, down 13.70p at 461.90p, 3i Group, down 91.00p at 4,211.00p, and J Sainsbury, down 7.00p at 344.00p.
Wednesday's global economic calendar has UK GDP, trade and industrial production data.
Wednesday's UK corporate calendar has half-year from credit checker Experian and electricity generator SSE, third quarter results from betting operator Flutter Entertainment and a trading update from housebuilder Taylor Wimpey.
By Jeremy Cutler, Alliance News reporter
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