UK shares gain as lower bond yields support sentiment

Fidelity

UK shares rose as lower government bond yields eased pressure on markets and several company updates gave investors fresh reasons to reassess individual stocks.

The FTSE 100 closed 0.7% higher at 10,831.52 points. The FTSE 250 also gained 0.7%, recovering after recently falling to a near one-month low.

A key driver was the move in UK government bonds. The 10-year gilt yield fell 9.5 basis points after reaching an 18-year high in the previous session. Lower yields helped reduce pressure on rate-sensitive sectors and improved the wider market backdrop.

Attention remained on upcoming US employment data. The non-farm payrolls report could shift expectations for interest rates and influence whether the recent improvement in market sentiment continues.

UK economic data also offered some support. The services sector expanded for a second month in August and business confidence improved. That provided a more constructive domestic signal, although interest-rate expectations and global market conditions remain important risks.

Banks rose 1.4% as bond yields eased. Precious metal miners gained 3.4% as gold and silver prices strengthened. Healthcare stocks added 0.6%, with AstraZeneca up 1.4%.

Fidelity Special Values PLC (LON:FSV) aims to seek out underappreciated companies primarily listed in the UK and is an actively managed contrarian Investment Trust that thrives on volatility and uncertainty.

Share on:
Find more news, interviews, share price & company profile here for:

Latest Company News

FTSE 100 rises as banks gain and oil falls

The FTSE 100 rises as banking shares gain and oil prices ease, while investors monitor Middle East tensions, UK economic data and the outlook for interest rates.

UK Investment Trusts: Latest News and Fund Manager Interviews – LWDB, FGT, RICA, BIOG, FSV

Across these five interviews, several common investment themes emerge: opportunities created by undervalued UK equities, the potential benefits and risks of artificial intelligence, increasing corporate takeover activity and the importance of selecting businesses with strong long-term prospects.

FTSE 100 extends recovery as global markets strengthen

The FTSE 100 is extending its recovery with a third consecutive gain in sight as stronger global markets, healthcare stocks and miners support London shares.

Fidelity Special Values delivers 27.8% 1-year return as UK mid-caps outperform

Fidelity Special Values reported a 23.4% NAV return over the 12 months to August 2026, ahead of the 21.3% index return, with the manager continuing to identify opportunities among undervalued UK mid-cap and smaller companies.

FTSE 100 gains as housebuilders take centre stage and oil prices rise

UK markets are being shaped by a combination of housing policy, energy prices and geopolitical developments, with the forthcoming Budget likely to provide further detail on measures affecting the economy and listed companies.

Top UK investment opportunities are hiding in plain sight

UK market leadership is broadening, giving Fidelity Special Values more scope to find mispriced companies across recruitment, banking, resources and defensive sectors.

Search