London stocks ended mixed on Thursday as investors digested a varied slate of corporate updates and remained cautious ahead of next week’s UK inflation figures, which could shape the Bank of England’s next interest rate decision.
The FTSE 100 edged up 0.1%, while the mid-cap FTSE 250 slipped 0.1%, reflecting the muted sentiment across markets.
Official data showed the UK economy grew by 0.1% in August, matching analyst forecasts and offering a modest boost for Chancellor Rachel Reeves ahead of her November Budget. However, the small rebound from July’s contraction is unlikely to alter expectations of tax rises as the government grapples with a sluggish economy and tight fiscal constraints.
The UK continues to face stubbornly low growth and the highest inflation rate among major developed economies, complicating the Bank of England’s policy path. The central bank held rates at 4% last month, but markets remain divided on whether it will begin cutting rates in November, December, or early 2026.
Within the market, insurance stocks were among the worst performers, with Admiral Group falling 2.4%.
In New York, the S&P 500 was flat, the Nasdaq Composite rose 0.2%, and the Dow Jones Industrial Average slipped 0.1%. The MSCI World Index, which tracks equities across major markets, was up 0.2% overall.
Markets have been volatile since Donald Trump last week threatened 100% tariffs on Chinese goods in retaliation for Beijing’s new export controls on rare earth materials. The move reignited fears of an escalation in the long-running US-China trade war.
However, Treasury Secretary Scott Bessent struck a more conciliatory tone on Wednesday, signalling that a pause in new tariffs may be possible as both sides work to resolve the rare earths dispute. He also confirmed that President Trump still intends to meet Chinese President Xi Jinping later this month.
