London, November 12, 2025 — The UK’s FTSE 100 index edged slightly lower on Wednesday, retreating from record highs after two consecutive sessions of gains. Losses in industrial and energy shares dragged the blue-chip index down, even as optimism around a potential U.S. government shutdown resolution buoyed broader market sentiment.
As of 12:14 GMT, the FTSE 100 (.FTSE) was down 0.1% at 9,886 points, remaining close to its all-time high and still within reach of the symbolic 10,000-point milestone. The FTSE 250 mid-cap index (.FTMC), often seen as a barometer of the domestic economy, edged up 0.1%, reflecting continued investor confidence in the UK’s medium-term outlook.
Market Sentiment Supported by Hopes of U.S. Shutdown Resolution
Investors remained cautiously optimistic after reports suggested that the U.S. House of Representatives may soon vote to end the government shutdown, which has delayed key economic data releases. A resolution is expected to improve clarity for the U.S. Federal Reserve’s next interest rate decision, easing uncertainty across global markets.
“Global sentiment has been slightly better this week as investors look past short-term political risks and focus on monetary policy signals,” analysts noted, adding that UK markets are still sensitive to international macroeconomic developments.
Industrials and Energy Stocks Lead Declines
The industrial sector (.FTNMX502050) led losses on the London Stock Exchange, sliding 1.3%. Data analytics firm Experian (EXPN.L) dropped 3.1%, despite projecting full-year revenue growth of 11%, the upper end of its guidance range.
Pharmaceutical heavyweight AstraZeneca (AZN.L) also retreated 0.5%, giving back some gains from the record high it reached earlier in the week. The broader pharma and biotechnology sector (.FTNMX201030) declined 0.6%, as investors took profits following recent strength in healthcare stocks.
Meanwhile, the energy sector (.FTNMX601010) weakened after oil prices dipped, erasing some of Tuesday’s strong rally. Oil majors BP (BP.L) and Shell (SHEL.L) lost 0.8% and 0.3%, respectively, amid concerns over short-term volatility in crude prices.
Homebuilders Retreat on Weak Autumn Sales
Homebuilding stocks (.FTNMX402020) slumped 1.8%, pressured by softer housing data and cautious consumer sentiment. Taylor Wimpey (TW.L) fell nearly 4% after reporting a slower autumn selling season, as potential homebuyers delayed purchases ahead of the UK government’s upcoming budget announcement.
Analysts expect housing demand to remain muted through the end of the year due to persistent affordability challenges and uncertainty around interest rate trajectories.
SSE Jumps to Record High on £33 Billion Investment Plan
In a bright spot for the market, utilities (.FTUB6510) outperformed, gaining 2.4%. SSE plc (SSE.L) soared 12.3% to a record high after unveiling a £33 billion (US$44.3 billion) five-year investment strategy aimed at upgrading the UK’s regulated electricity networks and expanding renewable energy capacity.
The announcement, which aligns with Britain’s long-term decarbonization goals, was hailed by analysts as a bold and transformative move that could solidify SSE’s position as a leading force in the UK’s clean energy transition.
Standout Movers: Smithson and Avon Technologies
Among individual movers, Smithson Investment Trust (SSON.L) climbed 6.7% after revealing plans to convert its assets into an open-ended fund, a move expected to enhance flexibility and attract new investors.
Meanwhile, Avon Technologies (AVON.L) surged 8.3% to a five-year high following an upbeat full-year outlook, with management citing stronger demand across its defense and technology divisions.
Investors Await Key UK GDP Data
Market participants are now turning their attention to Thursday’s preliminary UK GDP figures for Q3 2025, which will offer key insights into the nation’s economic growth trajectory. The data comes ahead of the government’s autumn budget announcement later this month, which could influence fiscal and monetary policy expectations.
Analysts anticipate modest growth in the quarter, supported by services and public sector spending but weighed down by sluggish manufacturing output.
Outlook
Despite the FTSE 100’s slight decline, investor sentiment remains broadly positive, supported by easing inflationary pressures and optimism over global economic stability. Market watchers say that a clear resolution to the U.S. budget standoff and a stronger domestic GDP reading could help the FTSE 100 break above the 10,000-point threshold in the near term.
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