London’s markets edged higher today as investors shrugged off lingering tech fears, focusing instead on central bank moves and company results.
The BoE’s Monetary Policy Committee voted 5-4 to slash interest rates by 25 basis points, dropping the bank rate to 3.75% from 4.0%. Governor Andrew Bailey and four colleagues judged inflation risks to be easing, tipping the scales in favour of cheaper borrowing.
The FTSE 100 added 0.7%, while the FTSE 250 rose 0.7% to 22,325.59. AIM All-Share followed suit, also up 0.7%. European markets mirrored the positive mood, with Paris’s CAC 40 climbing 0.8% and the DAX in Frankfurt up 1%.
The European Central Bank, meanwhile, kept interest rates unchanged at 2.00%, 2.15% and 2.40% for deposit, main refinancing, and marginal lending facilities, citing improved economic forecasts.
Wall Street bounced back from yesterday’s declines, with the Dow up 0.9%, the S&P 500 1.4% higher and the Nasdaq surging 1.9%.
In London, Whitbread jumped 6% after activist investor Corvex Management took a more than 6% stake, highlighting a perceived undervaluation and urging a strategic review. Whitbread defended its five-year plan, pointing to growth in the UK and Germany and flexibility in response to last month’s UK budget changes.
BP edged up ahead of a leadership change, with Meg O’Neill set to replace CEO Murray Auchincloss in April next year. Currys surged 7% after reporting a £9m half-year profit, swinging back from a loss and promising £75m in shareholder returns.
Tekmar on AIM rose 19% after winning an €8m offshore wind contract. Topps Tiles dropped 6.3% ex-dividend, though remains 14% higher for 2025.