London’s FTSE 100 edged 0.2% higher to around 10,660 points on Wednesday, buoyed by a decline in global bond yields after the Democratic sweep in the US midterm elections. Investors also assessed a new round of corporate earnings and positioned ahead of the Bank of England’s monetary policy decision on Thursday.
In the US, the surprise political outcome is seen as lowering the probability of additional deficit-expanding measures under the Trump administration.
On the corporate front, Smith & Nephew slipped more than 2% after cutting its full-year revenue and profit guidance, citing weaker-than-expected growth in its Orthopaedics division. Marks & Spencer fell over 1% despite posting first-half sales that beat expectations, while JD Wetherspoon added 0.8% after reporting higher like-for-like sales and reaffirming confidence in current market forecasts.
Meanwhile, markets broadly expect the Bank of England to resume monetary tightening on Thursday, with a widely anticipated interest rate increase that would mark its first hike since 2023.
