FTSE 100 Live: FTSE 100 Rises as HSBC and Segro Lead Gains; Pound Falls on Record Borrowing Surge

On Tuesday, FTSE 100 extended its upward momentum backed by gains in banking and real estate stocks despite the rising government borrowing weighed on the pound. Investors shrugged off fiscal concerns to focus on corporate updates and global market strength, with several blue-chip names ending higher.

FTSE 100 Maintains Uptrend

The benchmark FTSE 100 index climbed 29.61 points to 9,433.18, following Monday’s 0.5% upside. Gains were led by Segro which rose 3.06% to £693.20.

HSBC gained 1.65% to £985.80, after naming David Lindberg, former NatWest retail-banking head, as its new UK chief executive. The appointment marks another key leadership move under CEO Georges Elhedery, who has accelerated restructuring since taking the top role last year.

Barclays added 1.41% to £366.90 ahead of its third-quarter update, while Centrica climbed 1.25% to £174.05. 

RELX gained 1.67% to £3,462, continuing its steady rally. Meanwhile, Unilever slipped £27 to £4,632 after confirming that the planned demerger of its ice-cream division would be delayed due to the ongoing US government shutdown.

Corporate Headlines: Shawbrook IPO and Pizza Hut Closures

Specialist lender Shawbrook announced plans to list on the London Stock Exchange with an expected valuation between £1.8 billion and £2 billion. 

The share price range has been set at £350-£390, with trading scheduled to begin on 4 November. Around 18% of shares will be in public hands, rising to 21% if the overallotment option is exercised.

In retail, Pizza Hut UK confirmed that 68 restaurants and 11 delivery sites will close following the company’s collapse into administration, placing roughly 1,210 jobs at risk.

Fiscal Strain and Currency Weakness

The pound slipped against the dollar to below $1.34 after official data showed the UK’s borrowing figures surpassing forecasts. Government borrowing since April reached £99.8 billion, up £11.5 billion year-on-year, marking the highest September total since 2020.

According to the ONS, interest payments on debt jumped 66% to £9.7 billion, driven by surging inflation-linked bond costs in what analysts dubbed a ‘debt doom loop.’

Market strategist Kathleen Brooks of XTB warned that the deteriorating fiscal picture would pressure Chancellor Rachel Reeves to consider fresh tax increases in next month’s budget to stabilize public finances.

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Global Market Boost

Strong overnight gains on Wall Street also lifted sentiment. The Dow Jones and S&P 500 each rose over 1%, while Apple’s record valuation of $3.9 trillion further boosted tech confidence. Asian markets mirrored the rally, with Japan’s Nikkei 225 up 0.4% after Monday’s sharp advance.

Despite domestic fiscal concerns, global momentum kept London’s main index in positive territory, a sign of investor resilience heading into the year’s final quarter.