At the opening bell, the FTSE 100 slipped 4.02 points to 10,682.52 as market participants braced for the inaugural budget from Chancellor John Healey, alongside upcoming monetary policy announcements from the United States and Canada. Meanwhile, Brent crude futures climbed 1.20% to reach USD 115.3 a barrel, and US West Texas Intermediate (WTI) increased 1.52% to USD 101.4 a barrel.
Early Wednesday morning, sterling changed hands at USD 1.3285, down from its USD 1.3307 close at the end of Tuesday’s London session. Conversely, the pound strengthened against the euro, moving up to EUR1.1950 from EUR1.1943.
Gainers and Losers
Among the top performers, Segro advanced 1.03% to 919.20p, Polar Capital Technology Trust rose 0.87% to 635.00p, and Lion Finance Group moved up 0.81% to 12,480.00p. Glencore gained 0.79% to 546.10p, Prudential added 0.74% to 901.00p, and Babcock International Group increased 0.69% to 999.60p.
On the flip side, GSK suffered the steepest decline, plunging 3.77% to 1,851.00p. Unilever dropped 2.79% to 4,756.00p, Croda International retreated 1.43% to 3,576.00p, and Auto Trader Group dropped 1.36% to 521.00p. Sage Group went down 1.22% to 1,137.00p, while Diageo slipped 1.20% to 1,730.00p.
Healey Cuts Standard Charge on Gas Bill
UK Chancellor John Healey announced that gas bill standing charges will be eliminated as part of an initiative to reduce household energy expenses under the government’s cost-of-living strategy.
This measure is projected to lower the average household bill by roughly GBP 45 annually. Healey has instructed Ofgem to implement this adjustment by 2027 or “as soon as possible.” The standing charge, levied on all accounts irrespective of consumption levels, is utilized to finance the upkeep of the gas infrastructure.
Standard Chartered Raised Full-Year Outlook
Standard Chartered upgraded its full-year income growth projections after reporting third-quarter profits that beat expectations. Pre-tax profit increased by 27% year over year to reach USD 2.25 billion, surpassing the Bloomberg consensus estimate of USD 2.09 billion.
Measured in constant currency, operating income grew by 14%. The institution now anticipates that income growth for 2026 will surpass its previous forecast of 5% to 7%, while targeting a return of approximately 14%, up from an earlier projected range of 12%.
Additionally, the lender revised its net interest income forecast upward to roughly 4% growth—previously expected to be in the low single digits—and adjusted its cost objective to a cost-to-income ratio of around 60%.
Unilever Falls Amid Food Sales Decline
Unilever shares tumbled more than 3.3% during early trading to 4,727p following reports of slowing momentum within its food division. Investors appeared unimpressed by double-digit expansion across the company’s emerging markets.
Chris Beauchamp, chief market analyst at IG, remarked: “It is important to never forget that markets are about the future.”
He added: “That will make growth harder from here, acting as a brake on future ambitions. While profit guidance is unchanged for now, it remains to be seen if Unilever can keep that in place as cost pressures bite.”
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Global Market View
Across the Atlantic, the S&P 500 finished 0.6% higher at 7,722.60, the Dow Jones Industrial Average gained 15.99 points (or 0.03%) to close at 52,377.57, and the NASDAQ Composite advanced 1.18% to end the session at 26,477.81.
In Asian trading, Tokyo’s Nikkei 225 grew 1.08% to 63,954.19, China’s Shanghai Composite ticked up 0.91%, Hong Kong’s Hang Seng rose 0.23%, and South Korea’s Kospi surged 6.63%. In India, the Nifty 50 and the Sensex posted gains of 0.15% and 0.34%, respectively.
