The FTSE 100 reached a new record high this morning, lifted by gains across heavyweight pharmaceutical groups. AstraZeneca, GSK, and Hikma were among the strongest risers as sentiment turned in their favour following shifts in U.S. tariff policy. The index has now strung together one of its most resilient runs in recent years, standing firm despite global uncertainties. Energy names also offered support, with Brent crude prices climbing above 80 dollars a barrel, reinforcing the London market’s bias toward resource and healthcare exposure.
That strength arrives against the backdrop of a U.S. government shutdown, which has cut off the flow of key economic data and unsettled currency markets. The dollar slipped while sterling edged up, giving UK equities further tailwinds.
Domestically, the contrast could not be sharper. UK manufacturing is showing contraction, with output and new orders both weakening in September. Export demand is being weighed down by the uncertain global backdrop, and firms remain hesitant to expand capacity.
In housing, however, momentum has turned positive again. After a slight dip in August, UK house prices returned to growth in September, rising 0.5% on the month and putting annual growth back into positive territory at 2.2%. Mortgage approvals have been holding steady near 65,000 a month, close to pre-pandemic averages, and together with stable employment levels, that has helped keep activity ticking over.
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