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London’s FTSE 100 closed higher on Wednesday after a rate cut in Canada, while investors now turn to the US Federal Reserve’s rate call later in the day and the Bank of England’s decision on Thursday. ‘Markets have fully priced in a 25-basis-point [US] rate cut, but the key lies in the updated Summary of Economic Projections and [Fed Chair Jerome] Powell’s tone,’ commented Naga analyst Frank Walbaum. ‘Should policymakers reinforce the prospect of multiple cuts in the next months, equities could edge higher. Conversely, any signs of hesitation may trigger profit-taking at current levels.’ Meanwhile, in the UK, Donald Trump’s historic second state visit commenced. Trump and his wife were treated to a personal greeting outside Victoria House, a little-known property on the British royal family’s private Windsor estate. His formal ceremonial welcome in Windsor Castle’s quadrangle featured the largest ever guard of honour for this occasion. The FTSE 100 index closed up 12.71 points, 0.1%, at 9,208.37. The FTSE 250 ended up 127.94 points, 0.6%, at 21,619.81, and the AIM All-Share closed up 3.99 points, 0.5%, at 771.86. The Cboe UK 100 was up 0.1% at 922.36, the Cboe UK 250 was up 0.5% at 18,933.17, and the Cboe Small Companies was up 0.7% at 17,240.57. On the FTSE 100, Barratt Redrow gained 1.9%. The housebuilder’s pretax profit in the year to June 29, when including Redrow, which merged with Barratt in October, decreased on-year to £273.7 million from GBP£363.2 million. Revenue declined to £5.58 billion accounting for both businesses, while total home completions rose to 16,565 from 14,004. However, Barratt Redrow posted adjusted pretax profit of £591.6 million before purchase price adjustments, ahead of its July prediction in line with consensus of £582.6 million. Games Workshop rose 1.2%. The fantasy game figurine maker and retailer said trading to August 31 is in line with its expectations for the current financial year. It also declared a dividend of 85 pence, more than doubling the total dividends declared so far in financial 2026 to £2.25. On the FTSE 250, PRS REIT gained 6.2%. The real estate investment trust has entered non-binding heads of terms to sell its operating subsidiary PRS REIT Holding Co Ltd, and potentially liquidate its assets. The proposed buyer is an investment vehicle owned by a fund advised by real estate investor Waypoint Asset Management. In European equities on Wednesday, the CAC 40 in Paris closed down 0.5%, while the DAX 40 in Frankfurt ended up 0.1%. The pound was quoted higher at $1.3661 at the time of the London equities close on Wednesday, compared to $1.3642 on Tuesday. The euro stood at $1.1847, higher against $1.1837. Against the yen, the dollar was trading lower at JP¥146.35 compared to JP¥146.65. In US news, building permits and housing starts declined in August, data published by the US Census Bureau and the US Department of Housing & Urban development showed. Privately-owned housing units authorised by building permits in August fell 3.7% to a seasonally adjusted annual rate of 1.31 million, from 1.36 million in July. This was below the FXStreet-cited consensus of an uptick to 1.37 million. Privately-owned housing starts in August were at a seasonally adjusted annual rate of 1.31 million, down 8.5% from 1.43 million in July and below the consensus of a milder decrease to 1.37 million. Stocks in New York were mixed. The Dow Jones Industrial Average was up 0.7%, the S&P 500 index down 0.1%, and the Nasdaq Composite down 0.5%. The yield on the US 10-year Treasury was quoted at 4.04%, narrowing from 4.05%. The yield on the US 30-year Treasury was quoted at 4.64%, narrowing from 4.66%. Meanwhile, the Bank of Canada cut its key interest rate as expected by 25 basis points to 2.5%. ‘With a weaker economy and less upside risk to inflation, the Governing Council judged that a reduction in the policy rate was appropriate to better balance the risks,’ the BoC said in its statement. ‘Looking ahead, the disruptive effects of shifts in trade will continue to add costs even as they weigh on economic activity.’ Brent oil was quoted lower at $68.04 a barrel at the time of the London equities close on Wednesday from $68.32 late Tuesday. Gold was quoted at $3,685.67 an ounce against $3,680.32. The biggest risers on the FTSE 100 were Marks & Spencer, up 14.40p at 357.80p, Centrica, up 5.85p at 169.20p, Coca-Cola Europacific Partners, up 210.00p at 6,640.00p, Segro, up 12.60p at 646.00p, and Barratt Redrow, up 6.80p at 373.00p. The biggest fallers on the FTSE 100 were Fresnillo, down 56.00p at 2,186.00p, Anglo American, down 57.50p at 2,518.50p, BAE Systems, down 41.00p at 1,955.50p, Endeavour Mining, down 46.52p at 2,813.48p, and Glencore, down 4.35p at 306.20p. On Thursday’s economic calendar, all eyes will be on the Bank of England’s interest rate decision. US weekly jobless data and Australian unemployment are also scheduled. On Thursday’s UK corporate calendar, Renishaw releases its full-year results and Next has its half-year earnings. Auto Trader and Foresight Environmental Infrastructure both have their annual general meetings. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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