(Reuters) – The UK’s main stock indexes closed higher on Wednesday boosted by gains in the technology and financial sectors, while the pound slipped after Finance Minister Rachel Reeves’s dovish remarks on resetting ties with the European Union and the United States.
The blue-chip FTSE 100 inched 0.3% higher, logging its third straight session of gains, while the midcap FTSE 250 slipped 0.1%.
Technology stocks were the biggest boost to the benchmark index as chip stocks in Europe and the U.S. are recovering from a punishing selloff triggered by China’s low-cost DeepSeek artificial intelligence tool at the start of the week.
The Bank of England delayed introducing new rules for banks to avoid putting British firms at a competitive disadvantage to the U.S., BoE Governor Andrew Bailey said.
Financials stocks such as HSBC and Barclays rose 1.4% and 2.4% respectively, while NatWest Group ticked up 2.3%.
The banking and insurance sectors rose 1.7% and 2.7% respectively.
Automobile shares jumped 3.8%, logging their best day since Jan. 3.
The majority of that boost came from a 7.5% pop in shares of Dowlais Group after U.S. autoparts maker American Axle and Manufacturing said it will buy GKN Automotive owner in a cash-and-stock deal, valuing the London-listed firm at about 1.16 billion pounds ($1.44 billion).
The Beverages index slid 2.6%, hurt by a fall in Diageo’s shares after disappointing results from LVMH as the Johnnie Walker-maker holds a stake in LVMH’s drinks unit Moet Hennessy.
Mexico’s second-largest gold miner Fresnillo was one of the top gainers on the FTSE 100, with a 2.7% rise after it posted full-year gold production slightly ahead of market outlook.
The pound fell slightly after finance minister Reeves shared her growth plans and said Britain will boost its economy by resetting its ties with the European Union and building on its special relationship with the U.S.
“The measures announced by the Chancellor are unlikely to kickstart economic growth, however, they may well provide growth for the longer term that subsequent governments will reap rewards from,” said Neil Birrell from Premier Miton Investors.
Investors are focussed on the U.S. Federal Reserve, that is set to hold interest rates at 1900 GMT and could likely indicate a pause for the next few meetings in 2025.
(Reporting by Shubham Batra in New Delhi and Pranav Kashyap in Bangalore; Editing by Tasim Zahid and Alan Barona)
