The FTSE 100 rebounded strongly on Wednesday, closing up 0.6% at 9,777.08, recovering from a cautious start as global markets steadied. The FTSE 250 added 0.5% to 22,094.38, while the AIM All-Share fell 0.4% to 756.22.
Investor sentiment was lifted by robust UK economic data. The S&P Global UK services purchasing managers’ index (PMI) rose to 52.3 in October, up from 50.8 in September, comfortably beating the 51.1 flash reading. The composite PMI, tracking the wider private sector, expanded to 52.2, marking six consecutive months of growth.
Across the Atlantic, US markets also stabilised after recent turbulence. ADP reported that the US private sector added 42,000 jobs in October, exceeding expectations of 32,000 and reversing September’s downwardly revised 29,000 job losses. Meanwhile, the ISM services PMI rose to 52.4, up from 50% in September, further boosting confidence. Wall Street closed higher near the London close, with the Dow up 0.2%, S&P 500 0.5%, and Nasdaq 0.8%.
In London, Marks & Spencer was flat after reporting a sharp 99% fall in half-year pretax profit to £3.4 million, primarily due to a cyberattack in April that disrupted online orders. The retailer recorded £101.6 million of costs in the first half, partially offset by £100 million in insurance proceeds. CEO Stuart Machin described the period as “extraordinary” but highlighted the company’s resilience.
Barratt Redrow rose 0.9% as it reiterated guidance amid a challenging housing market. The builder confirmed it remains on track to deliver £100 million of cost synergies from its takeover of Redrow, with £80 million already confirmed.
On the FTSE 250, Ceres Power surged 19% after signing a new manufacturing licence agreement with Chinese engine maker Weichai Power, expanding its global partnership and revenue potential. Trainline climbed 5.3% after raising its adjusted EBITDA growth outlook to 10–13%, supported by first-half performance, though investors noted the potential impact of the UK Government’s new Railways Bill.
Technology-focused investment trusts lagged. Polar Capital Technology Trust slipped 0.4% and Scottish Mortgage Investment Trust fell 1.6%, reflecting continued caution after recent US tech sector volatility.
Overall, the FTSE 100 regained confidence as strong domestic service sector data and stabilising US employment figures eased investor concerns, while focus shifts to upcoming fiscal and regulatory developments.
