Source: Sharecast
The FTSE 100 closed up 0.4% at 10,541.69, while Brent crude was down 1.1% at $99.19 a barrel and West Texas Intermediate was 0.7% lower at $88.79.
Dan Coatsworth, head of markets at AJ Bell, said: "The big bond market sell-off appeared to be yesterday’s news on Tuesday as the S&P 500 hit fresh record levels, supported by buoyant AI stocks,
"Expectation is already building ahead of the US third-quarter earnings season, with numbers starting to filter their way into the market in the coming weeks. Perceived AI winners are likely to be under the spotlight, particularly given how dominant these companies now are in US indices.
"Signs of recovering oil exports from the Middle East, despite the ongoing crisis in the region, have helped pull Brent crude prices back below $100 per barrel. Bond yields are also lower than their recent multi-year and, in some cases, multi-decade highs.
"The FTSE 100 was more subdued than its US counterpart, as aerospace and defence firms, energy stocks and gold miners were among those to take a step back."
On the macro front, a survey showed the downturn in the construction sector eased somewhat in September.
The S&P Global purchasing managers’ index for the sector ticked up to 46.1 from 44.3 in August. This was still well below the 50.0 level that separates expansion from contraction but marked the slowest fall in construction output since January.
Slower rates of contraction were seen in the residential, commercial and civil engineering segments. Meanwhile, commercial construction was the most resilient, with business activity falling only marginally and at the weakest pace since May 2025.
Housing activity remained the worst-performing area of the construction sector, with many survey respondents linking lower output to sluggish market conditions due to geopolitical tensions and elevated borrowing costs.
In equity markets, defence firms were under the cosh following a report that Prime Minister Andy Burnham is considering delaying a decision about when the government will increase defence spending until the autumn of next year in the hope that Britain’s economy improves.
The government had been expected to hold the spending review in the spring. However, according to The Times, ministers are now considering delaying the review so it can take place alongside the next budget, enabling the government to raise taxes or cut spending to fund the increase.
BAE Systems, Melrose, Rolls-Royce, Babcock, Qinetiq and Chemring all fell sharply.
On the upside, Informa surged as it announced the acquisition of event and exhibition organiser Clarion from private equity firm Blackstone for £2.24bn, and said it was planning to separate its academic business, Taylor & Francis, to focus on its core B2B business.
Shipping broker Clarksons rallied as it lifted its full-year earnings guidance, while Telecom Plus advanced after saying it delivered encouraging early progress against its new five‑year growth plan and reiterating FY27 guidance for adjusted pre-tax profit of between £80m and £90m.
On the downside, Asos shares tumbled after the online fashion retailer confirmed it had been the victim of a cyber attack and said that basic customer personal information including name and contact details may have been accessed. The company said it does not believe that payment card information or account passwords were impacted.
Market Movers
FTSE 100 (UKX) 10,541.69 0.42%
FTSE 250 (MCX) 24,215.33 0.38%
techMARK (TASX) 6,136.49 -0.20%
FTSE 100 - Risers
Whitbread (WTB) 2,551.00p 5.15%
Weir (WEIR) 2,662.00p 3.10%
Informa (INF) 887.20p 2.95%
Next (NXT) 14,595.00p 2.93%
Burberry Group (BRBY) 1,031.50p 2.79%
Marks & Spencer Group (MKS) 385.80p 2.55%
Investec (INVP) 618.00p 2.32%
Admiral Group (ADM) 3,650.00p 2.13%
WPP (WPP) 380.30p 2.12%
Pershing Square Holdings Ltd NPV (PSH) 3,762.00p 1.90%
FTSE 100 - Fallers
BAE Systems (BA.) 1,855.00p -4.08%
Melrose Industries (MRO) 461.00p -2.97%
Ithaca Energy (ITH) 274.20p -2.56%
IG Group Holdings (IGG) 962.00p -2.43%
Games Workshop Group (GAW) 16,560.00p -2.42%
Rolls-Royce Holdings (RR.) 1,438.20p -2.25%
Babcock International Group (BAB) 906.60p -2.07%
BT Group (BT.A) 195.25p -1.88%
Vodafone Group (VOD) 125.10p -1.65%
Abrdn (ABDN) 237.80p -1.57%
FTSE 250 - Risers
Oxford Nanopore Technologies (ONT) 230.80p 4.91%
Domino's Pizza Group (DOM) 222.60p 4.80%
Man Group (EMG) 335.20p 4.29%
W.A.G Payment Solutions (EWG) 99.30p 4.20%
Bridgepoint Group (Reg S) (BPT) 346.80p 4.14%
Volex (VLX) 699.00p 3.25%
Workspace Group (WKP) 367.80p 3.20%
Kainos Group (KNOS) 1,238.00p 2.82%
Jupiter Fund Management (JUP) 171.00p 2.76%
IP Group (IPO) 72.10p 2.71%
FTSE 250 - Fallers
ASOS (ASC) 454.00p -9.56%
Inchcape (INCH) 686.00p -6.22%
QinetiQ Group (QQ.) 449.80p -5.38%
Chemring Group (CHG) 508.50p -4.42%
Drax Group (DRX) 780.00p -3.58%
Trustpilot Group (TRST) 230.80p -3.11%
Oxford Biomedica (OXB) 531.00p -2.39%
Mitchells & Butlers (MAB) 287.50p -2.38%
Hochschild Mining (HOC) 522.50p -2.25%
Energean (ENOG) 696.50p -2.11%