London’s stock market enjoyed a strong day on Tuesday, with the FTSE 100 closing at 9,899.60, a fresh record high, up 1.2%.
The FTSE 250 also advanced 0.8% to 22,149.88, while the AIM All-Share rose slightly to 759.24. If the FTSE 100 breaks 10,000 this year, it will mark the fastest climb between 1,000-point milestones in history.
The rally came as softer UK economic data bolstered expectations that the Bank of England could deliver a rate cut before its December meeting.
The Office for National Statistics reported the unemployment rate rose to 5.0% in the three months to September, the highest since early 2021. Payrolled employment fell by 117,000 over the year and 32,000 between August and September. Wage growth eased slightly but remained above inflation, with regular pay up 4.6% and total pay including bonuses rising 4.8%.
Hopes of cheaper borrowing helped lift housebuilders. Berkeley Group Holdings rose 3.4%, Barratt Redrow climbed 3.1%, and Persimmon added 2.0%.
Vodafone stole the show, jumping 8.3% after announcing its first dividend increase in seven years, a €500 million share buyback, and a return to growth in Germany. Adjusted EBITDA rose 5.9% to €5.73 billion, beating consensus expectations. Service revenue climbed 8.1% to €16.33 billion.
Retailers struggled amid weaker consumer spending. Annual retail sales growth slowed to 1.6% in October from 2.3% in September, while grocery inflation eased to 4.7%. Tesco and J Sainsbury fell 2.9% and 2.0%, respectively, and Marks & Spencer dipped 4.6%. Croda slipped 0.8% after broker downgrades.
In the FTSE 250, 4Imprint surged 18% after raising annual guidance to the upper end of forecasts, with pretax profit expected at least $142 million. By contrast, Hilton Food Group tumbled 23% after lowering its 2025 earnings outlook, citing weaker UK seafood demand and cost pressures.
Overall, the record-setting FTSE 100 reflects a market riding high on rate-cut optimism, even as pockets of the economy and corporate earnings show caution.
