FTSE 100 closes higher on healthcare gains, pound weakness

The blue-chip index ended 0.1% higher, weathering the storm that swept through European markets

London’s FTSE 100 closed slightly higher on Tuesday, bucking the downward trend seen across global markets as healthcare gains and pound weakness provided crucial support.

The blue-chip index ended 0.1% higher, weathering the storm that swept through European markets.

In contrast, the midcap index declined 0.5% and extended its losing streak to seven straight sessions.

Metal miners faced pressure as a strengthening dollar pushed gold and copper prices lower, with both precious and industrial mining sectors retreating more than 1.7%.

Financial stocks also struggled, with insurers and investment-banking shares dropping 1.3% and 0.3%, respectively.

The aerospace and defence sector shed 1.2%, with engineering firm Senior slipping 2.9%.

The gloomy sentiment was widespread across markets, with Germany and France posting losses. The pan-European STOXX 600 slid to its lowest level since mid-October.

In the UK, the heavyweight healthcare sector’s 1.3% gains helped offset weakness in other areas.

A weaker pound provided additional support for the main index after Chancellor Rachel Reeves warned of “hard choices” ahead in an unusual speech just three weeks before delivering her second annual budget. UK government bond yields also declined in response.

Her speech was as much about managing expectations as setting direction, said Nigel Green, CEO of deVere Group.

Energy stocks added 0.3%, boosted by Diversified Energy’s 8.1% gains after it hiked annual profit forecast. Oil major BP advanced 1.3% after reporting a smaller-than-expected decline in third-quarter underlying profit.

Looking ahead, the Bank of England is expected to maintain interest rates at their current level on Thursday, though recent softer inflation and wage data could strengthen the case for a future cut.