The UK stock market opened cautiously on Monday, 17 November 2025, with the FTSE 100 edging slightly higher around the 9,700 mark as traders weighed last week’s Budget turmoil against a pivotal week for inflation data and delayed US economic releases.shareprices.com+1
Market snapshot: FTSE 100 flat, FTSE 250 softer
By around 09:00 GMT, the FTSE 100 had added only a few points, up about 0.1% at roughly 9,701–9,706, after Friday’s sharp sell-off.shareprices.com+1
- FTSE 100: up 3–8 points to around 9,701–9,706, a modest 0.1% gain.shareprices.com+1
- FTSE 250: down roughly 0.1% at about 21,796–21,806, signalling a softer tone in mid-caps.shareprices.com+1
- AIM All‑Share: up around 0.1% at 747.5, highlighting tentative risk appetite in smaller growth stocks.shareprices.com+1
Alliance News and Sharecast both described European trade as “lacking impetus” early on Monday, with investors reluctant to take big positions ahead of a backlog of US data and another heavy week for central‑bank watching.shareprices.com+1
Despite the muted open, the FTSE 100 remains up roughly 18–19% year‑to‑date, only about 2% below its recent record peak, underpinning the narrative that UK large caps have staged one of their strongest calendar‑year rallies in a decade.Investing.com UK
Note: Index levels and percentage moves in this article are based on early‑morning London prices on 17 November 2025 and may change by the close.
Budget U‑turn fallout still hangs over UK stocks
Monday’s subdued tone comes directly after a bruising session on Friday, when the FTSE 100 slumped about 1.1%, its steepest one‑day fall since April, as reports emerged that Chancellor Rachel Reeves had abandoned plans to raise income tax in the upcoming Budget.Reuters+1
- The FTSE 100 closed Friday at 9,698.37, down more than 100 points on the day, even as it still managed a modest 0.2% gain for the week.MarketScreener
- Gilt yields jumped sharply, reflecting fears that a softer tax stance could force the government to lean more heavily on borrowing, unnerving bond investors and equity traders alike.Reuters+1
Former Bank of England chief economist Andy Haldane has criticised the “circus” surrounding Budget speculation, arguing that constant leaks and policy trial balloons have weighed on business confidence and helped limit UK GDP growth to just 0.1% in Q3 2025, a weaker‑than‑expected outcome also affected by a cyberattack that disrupted Jaguar Land Rover production.The Times
The same live coverage notes that Rightmove data show the steepest autumn drop in UK asking prices for new listings in 13 years, as sellers and buyers pause amid talk of potential property tax changes—another drag on sentiment for UK‑focused stocks.The Times+1
A pivotal week: UK CPI, the Bank of England and US data backlog
Analysts are characterising this week as crucial for the UK monetary‑policy outlook and risk assets more broadly.
An analysis from Investing.com highlights three main macro drivers for the FTSE 100 right now:Investing.com UK
- UK inflation data (CPI) due later in the week
- If October’s figures show inflation easing after peaking in September, the Bank of England could have enough room to consider a rate cut in December.Investing.com UK+1
- A still‑hot read would likely cement a longer “higher for longer” stance, keeping pressure on rate‑sensitive domestic sectors such as housebuilders, real estate and small‑cap lenders.
- Budget fallout and fiscal credibility
- Even if inflation cooperates, the “biggest potential hurdle” may come from how markets digest the Autumn Budget next week, where further changes to tax and spending could alter the perceived trajectory of growth and gilt issuance.Investing.com UK+1
- US macro data and the Fed
- The US government shutdown has delayed key statistics, including the September non‑farm payrolls report, now scheduled for release this Thursday—and some data may never be published at all, according to White House briefings.shareprices.com+1
- Early commentary from Lloyds Bank suggests that a new private‑sector employment gauge and upcoming Fed minutes will be closely watched as traders reassess the odds of a December US rate cut, which have already fallen below 50%.London South East+1
Kathleen Brooks, research director at XTB, notes a pattern of late‑week weakness and Monday rebounds in global stocks this autumn and warns that this week “could be key” for how equity markets perform into year‑end, with Nvidia’s earnings on Wednesday a potential turning point for the AI‑driven tech trade.London South East+1
Global backdrop: Asia jitters, AI valuations and Bitcoin volatility
The external environment for UK assets remains volatile:
- Asian markets were mostly lower on Monday, with investors rattled by worsening geopolitical tensions between China and Japan over Taiwan, along with lingering macro worries.Yahoo Finance+1
- Luxury and Asia‑exposed financial names such as Burberry and HSBC were flagged as under pressure, reflecting concerns about regional travel and consumer demand.Investing.com UK+1
- US indices ended last week on a fragile footing amid anxiety that AI‑linked stocks may have run too far, too fast. Monday’s futures pointed to a mild rebound, but much hinges on Nvidia’s results and guidance.London South East
- Bitcoin, which nearly wiped out its gains for the year last week, has rebounded modestly but remains highly volatile—another sign that risk appetite is fragile across asset classes.The Times+1
For the FTSE 100, which is heavy in energy, commodities and financials rather than megacap tech, these cross‑currents are a mixed bag: they can weigh on sentiment but sometimes support the UK’s “value” narrative relative to US growth stocks.
FTSE 100: WPP surges, Burberry and miners lag
While the headline index was broadly flat, there was plenty of action beneath the surface. Sharecast’s London open report and live risers/fallers data highlighted a clear split between winners and losers.London South East+1
Big blue‑chip gainers
- WPP – M&A speculation and index reshuffle
- The advertising giant jumped roughly 5% in early trade, making it the top FTSE 100 riser.London South East+1
- The Times reported over the weekend that French group Havas and private‑equity firms Apollo and KKR have expressed takeover interest ahead of WPP’s expected demotion from the FTSE 100, sparking hopes of a bidding war or at least strategic change.London South East+1
- 3i Group – Private equity resilience
- The investment and private‑equity group climbed close to 3%, recovering some of last week’s declines and benefiting from its strong long‑term performance narrative and exposure to continental European consumer and infrastructure assets.London South East+1
- British American Tobacco, DCC, SSE, BAE Systems
- British American Tobacco and SSE were among steady defensive gainers, up around 1%, as investors rotated into high‑dividend names.Hargreaves Lansdown+1
- DCC traded higher after announcing it would return up to £600m to shareholders following the £1bn sale of its healthcare unit.London South East
- Defence contractor BAE Systems also inched higher, continuing to benefit from elevated global defence spending.London South East+1
Notable fallers
- Burberry – Luxury hit by Asia risk
- Burberry shares fell around 3%, extending recent weakness as luxury names struggle with softer Chinese demand and, now, specific concerns about regional travel and tourism linked to China–Japan tensions.London South East+1
- Miners and cyclicals
- Anglo American and Antofagasta slipped about 1%, alongside other resource plays, as commodity prices and global growth expectations came under pressure.TradingView+1
- Mid‑cap building‑products firm Genuit dropped more than 9% after cutting full‑year earnings guidance, citing weaker volumes and Budget‑related uncertainty in UK construction demand.London South East
Overall, the FTSE 100’s slight rise masked quite a bit of rotation: investors bought value and dividend plays, while trimming exposure to luxury, cyclicals and Asia‑sensitive stocks.
FTSE 250 and infrastructure: TRIG–HICL merger dominates mid‑caps
The FTSE 250 traded marginally lower, but several high‑profile movers stood out.London South East+1
- The Renewables Infrastructure Group (TRIG)
- TRIG surged more than 6% after agreeing a merger with HICL Infrastructure, which will create the UK’s largest listed infrastructure investment company with net assets above £5.3bn.London South East+1
- The deal involves the winding‑up of TRIG and the transfer of its assets into HICL in exchange for new HICL shares plus cash, consolidating two major players in renewable and social infrastructure.London South East
- HICL Infrastructure
- HICL’s own shares fell more than 7% as investors digested the structure and pricing of the merger, a typical pattern when an acquirer takes on integration and execution risk.London South East
- Ninety One
- Asset manager Ninety One slipped around 2–3% despite reporting a return to net inflows of £4.3bn in the six months to 30 September, reversing £5.3bn of outflows a year earlier.London South East+1
- Adjusted operating profit rose about 12% to £98.8m, with pre‑tax profit up 10% to £102.2m, but the share price suggests investors may have wanted stronger guidance or remain wary of market volatility.Halifax Investments
- THG and consumer names
- Ecommerce group THG gained nearly 4% after announcing that its Myprotein brand has struck a partnership with Mars to launch Snickers‑flavoured protein products, a deal seen as both a marketing boost and a potential revenue driver.London South East
Across the mid‑cap space, the pattern is familiar: companies with clear, self‑help stories or corporate activity (M&A, buybacks, partnerships) are being rewarded, while anything tied to UK domestic demand or construction remains under heavier scrutiny.
Property market jitters and life‑insurer resilience
The property market continues to loom large over UK equities:
- Rightmove’s November data show:
- Average new seller asking prices fell 1.8% month‑on‑month, a larger‑than‑usual seasonal drop and a reversal of October’s small 0.3% rise.
- Asking prices are now 0.5% lower year‑on‑year, with the national average around £364,800.London South East
- Sales agreed this year are up 4%, but the supply of homes coming to market has surged, giving buyers the upper hand.London South East+1
Speculation about a potential “mansion tax” on £2m‑plus homes and possible changes to stamp duty is already denting activity at the top end of the market, Rightmove noted, and could spill into listed housebuilders, estate‑agency chains and London‑focused property groups.London South East+1
On a more positive note for financial stability, the Bank of England recently confirmed that major UK life insurers passed a severe stress test, underlining the sector’s resilience even in the face of market volatility and changing interest‑rate expectations.The Times
Valuation backdrop: UK equities still look “cheap” to many
Despite the recent wobble, several commentators continue to argue that UK shares remain undervalued relative to other developed markets:
- Analyst pieces published today highlight “some of the cheapest UK stocks in November”, focusing on high‑yield, cash‑generative companies whose valuations still trail global peers despite this year’s rally.The Motley Fool
- Others point out that, historically, the FTSE 100 has tended to perform reasonably well in the months following a big Budget event—provided the Chancellor avoids a crisis of confidence in gilts.The Motley Fool+1
Morningstar’s 2026 outlook, cited in UK press coverage, also suggests that UK stocks and gilts now offer comparatively attractive risk‑reward, with UK government debt levels favourable versus some other G7 economies—another argument for international investors to revisit London listings.The Times
That said, the combination of political noise, Budget uncertainty, and global growth concerns means this “value gap” may persist until investors see clearer evidence that inflation is beaten and fiscal policy is on a sustainable footing.
What UK investors are watching next
Looking ahead from today’s session, markets in London are focused on a handful of key catalysts that could shape the FTSE 100’s direction into December:
- Wednesday, 19 November – UK CPI (October)
- A softer print would bolster hopes of a Bank of England rate cut in December, potentially supporting domestic cyclicals and mid‑caps.Investing.com UK+1
- This week – delayed US data & Fed communications
- The release of September US jobs data and the new private‑sector employment indicators will help traders reassess the odds of a Fed cut. Fed minutes and a barrage of speakers later in the week will also be parsed for any hint of a dovish pivot.shareprices.com+1
- Wednesday – Nvidia earnings
- Nvidia’s report is expected to be enormous in scale, with analysts forecasting quarterly revenue above $55bn and net income over $30bn. A “monster” beat or miss could ripple through global tech valuations and, by extension, sentiment towards equities in general.London South East+1
- Next week – UK Autumn Budget
- Final details on tax, spending and any property‑market measures will be crucial for gilts, sterling and domestically focused UK shares. Investors will be alert for any surprises that could reignite concerns over fiscal credibility.The Times+1
Bottom line
As of Monday morning on 17 November 2025, the UK stock market is in “wait‑and‑see” mode.
The FTSE 100 is broadly flat, stabilising after Friday’s income‑tax‑related rout, supported by strength in WPP, infrastructure‑linked names and select defensives, but capped by ongoing weakness in luxury, miners and domestically sensitive cyclicals.TradingView+1
With UK inflation data, a delayed barrage of US macro releases, Nvidia’s AI‑watch earnings and the Autumn Budget all landing within days, it’s hardly surprising that London traders are treading carefully. For now, the UK remains a market where valuations look appealing on paper—but sentiment will only truly improve if policymakers and data give investors fewer reasons to worry.
