UK stock market today: FTSE 100 edges higher as miners rally ahead of Reeves’ tax-heavy Budget

The UK stock market is trading higher on Wednesday 26 November 2025, with investors firmly focused on Chancellor Rachel Reeves’ high‑stakes Autumn Budget and what a new wave of tax rises could mean for shares, sterling and gilts.

By mid‑morning, the FTSE 100 was hovering around 9,620–9,630, up roughly 0.2% on the day, while the more domestically focused FTSE 250 outperformed with gains close to 1%. ^[1]

Key points

FTSE 100 trades modestly higher around 9,625, extending Tuesday’s advance ahead of the 2025 Autumn Budget at 12:30 GMT. ^[2]
Miners, defence and luxury stocks lead the blue‑chip index, while advertising group WPP and major consumer staples drift lower. ^[3]
FTSE 250 and UK mid‑caps jump nearly 1% as traders position in budget‑sensitive domestic sectors such as retailers, infrastructure and specialist finance. ^[4]
Sterling rises for a fifth straight day, with investors braced for potential £20–30bn of tax increases as Reeves tries to rebuild fiscal headroom and keep bond markets on side. ^[5]

All market levels are approximate and based on delayed data as of around 10:00 GMT on 26 November 2025.

Market snapshot: FTSE 100, FTSE 250 and AIM

London stocks opened on the front foot, mirroring a positive global risk mood driven by rising expectations of a US Federal Reserve rate cut in December. ^[6]

At around 08:30 GMT, the FTSE 100 was up 0.2% at 9,629.95, with the FTSE 250 at 21,652.31 (+0.16%) and the AIM All‑Share just in positive territory at 742.57. ^[7]
By 09:51 GMT, FTSE data showed the blue‑chip index at 9,624.49, a gain of 14.96 points or 0.16% on the day. ^[8]
Hargreaves Lansdown’s market summary page had the FTSE 100 at 9,628.10, up 18.57 points (0.19%), with an intraday range between 9,608.71 and 9,642.50. ^[9]
The FTSE 250 was trading near 21,617, up almost 1%, signalling stronger appetite for UK‑focused mid‑caps than for globally exposed blue‑chips. ^[10]

Today’s move builds on Tuesday’s rally, when the FTSE 100 climbed 0.8% and the FTSE 250 gained about 1% as investors bought financials, consumer staples and construction names ahead of the Budget. ^[11]

Over the past year, the FTSE 100 has risen about 16.5%, trading not far below its 52‑week high just under 9,930 points and within sight of record levels set earlier in November. ^[12]

Budget 2025 dominates sentiment in UK markets

Today’s price action is dominated by anticipation of Rachel Reeves’ Autumn Budget, due at around 12:30 GMT alongside fresh economic forecasts from the Office for Budget Responsibility (OBR). ^[13]

Economists and strategists broadly expect Reeves to announce £20–30bn of tax rises and spending cuts, aiming to:

Rebuild her fiscal “headroom” from roughly £9.9bn to nearer £20bn
Convince bond markets that UK debt remains on a sustainable path
Avoid a repeat of the gilt market turmoil seen after the 2022 “mini‑Budget” under Liz Truss ^[14]

Having ruled out increases in the main rates of income tax, National Insurance or VAT, Reeves is widely expected to lean on a “smorgasbord” of smaller measures. Analysts have flagged possible options including: ^[15]

Further freezes to income tax thresholds (stealth tax via “fiscal drag”)
Higher council tax and gambling duties
Tweaks to capital gains tax and reliefs on property and investments
Changes to business taxes, from bank surcharges to energy levies, though corporate profitability is already under pressure ^[16]

The OBR is expected to downgrade UK productivity and growth forecasts, which mechanically raises projected borrowing and narrows Reeves’ room for manoeuvre. ^[17]

Inflation has eased from a peak above 4% but remains elevated at 3.6% in October 2025, the highest rate in the G7. The Bank of England has cut interest rates five times since Labour’s election victory; the base rate now sits at 4%, with markets pencilling in another cut on 18 December. ^[18]

With government debt close to 100% of GDP and annual debt interest near £100bn, bond investors are laser‑focused on whether today’s package meaningfully reduces medium‑term borrowing needs. ^[19]

Sterling and gilts: markets test Reeves’ credibility

The British pound is quietly voting on the Budget even before Reeves stands up in the Commons.

Sterling is up about 0.17% today at $1.3188, marking a 1% gain over the past five sessions – its strongest weekly performance since mid‑August, largely driven by broader dollar weakness. ^[20]
Against the euro, the pound is little changed around 87.9p, but has firmed by about 0.5% over the past week. ^[21]

Demand for short‑dated FX options has spiked as traders buy protection against post‑Budget volatility, reflecting nervousness over whether Reeves can deliver a package that satisfies both bond markets and her own party. ^[22]

On the bond side, 10‑year gilt yields have eased from their autumn highs but remain around 4.5%, the highest in the G7 and a reminder of how sensitive UK borrowing costs are to any hint of fiscal slippage. Longer‑dated 30‑year gilts are still trading near their highest yields since the late 1990s. ^[23]

Strategists quoted by Reuters and other outlets argue that: ^[24]

A credible, front‑loaded consolidation could push yields lower and support sterling and UK equities
A package perceived as politically driven or too light on revenue could trigger another “bond vigilante” reaction, pushing up yields and putting pressure on the pound

That tightrope walk explains why today’s gains in UK equities are cautiously modest despite broadly supportive global markets.

Sector movers: miners, defence & luxury stocks shine

The FTSE 100 risers board is dominated by miners, defence and a smattering of “quality growth” names.

According to early trading data: ^[25]

Fresnillo jumped around 3.5%, topping the FTSE 100, as firmer gold prices lifted precious‑metals producers.
Endeavour Mining rose roughly 3.5–3.7%, benefiting from the same move in bullion.
Antofagasta and other industrial‑metal miners added around 2%, helped by slightly lower US Treasury yields and improved sentiment on global growth.
BAE Systems and Rolls‑Royce gained close to 1%, with defence names still in favour on the back of elevated geopolitical risk and robust order books.
Burberry advanced between 1–2.5%, reversing part of its recent underperformance as investors hunted for beaten‑up consumer discretionary plays.

On the downside: ^[26]

WPP fell around 1–2%, amid growing speculation it could be ejected from the FTSE 100 at the upcoming index reshuffle after nearly three decades in the benchmark.
Consumer‑staples heavyweights Diageo, Unilever and Reckitt Benckiser traded modestly lower, extending a recent period of underperformance as investors rotate toward more cyclical and interest‑rate‑sensitive sectors.
Retailer Next, personal‑care group Croda, healthcare spin‑off Haleon and utility Centrica all slipped by around 0.5–1.5%, reflecting a mild de‑risking in defensive names ahead of the Budget.

Overall, today’s pattern reinforces a trend seen in recent weeks: cyclical, commodity and defence stocks are capturing inflows, while some large, defensive multi‑nationals lag despite offering solid dividends.

Mid‑caps in focus: FTSE 250 rides domestic hopes

The FTSE 250 – seen as a barometer of the UK’s domestic economy – outpaced the blue‑chip index, climbing close to 1% as traders added exposure to stocks most sensitive to UK growth, interest rates and taxes. ^[27]

Barclays and other strategists have highlighted that a bond‑market‑friendly Budget, which nudges gilt yields lower, could particularly benefit: ^[28]

Housebuilders and real estate, via cheaper funding costs and potentially more stable housing demand
Food retailers and consumer names, if Reeves opts for targeted cost‑of‑living relief
Utilities and infrastructure, where valuations are closely linked to discount rates and regulatory clarity

Today’s FTSE 250 movers reflect that story: ^[29]

Pets at Home surged almost 6%, despite reporting a 33.5% drop in half‑year underlying profit and an 84% slump in retail division earnings. Investors appeared to welcome a new £20m cost‑cutting programme and management’s decision to maintain full‑year guidance.
Clean‑tech and energy‑transition names such as Ceres Power and gold producer Endeavour Mining posted gains of 3–5%, boosted by risk‑on sentiment and stronger commodity prices.
Specialist asset managers, infrastructure funds and technology‑focused trusts – including Pantheon Infrastructure and Polar Capital Technology Trust – also traded higher.

On the flip side, Bakkavor, Pinewood Technologies and Oxford Nanopore fell between 2–5%, as investors reacted to company‑specific updates and locked in profits after recent rebounds. ^[30]

Corporate news driving individual UK shares

Beyond the top‑down Budget story, a busy morning of RNS announcements and deal activity is also shaping individual share moves.

M&A and strategic deals

Intertek announced the purchase of US‑based Professional Testing Laboratory, expanding its presence in testing for the flooring industry as part of a bolt‑on acquisition strategy. ^[31]
Elementis said it had acquired UK‑based Alchemy Ingredients for an enterprise value of $22m, strengthening its personal‑care portfolio and higher‑margin speciality chemicals offering. ^[32]

These deals underscore a broader theme of incremental, balance‑sheet‑friendly acquisitions among UK mid‑cap and large‑cap companies, as boards look for targeted growth rather than transformational M&A in an uncertain macro backdrop.

Wave of buybacks

The corporate newswire is also filled with “transaction in own shares” notices, signalling that management teams continue to use buybacks to support earnings per share and capital returns: ^[33]

FTSE 100 and 250 constituents including British American Tobacco, BAE Systems, Intertek, Experian, Whitbread, Barratt Redrow, Centrica, Ashtead, Drax and others all reported fresh buyback activity this morning.
Several mid‑cap and small‑cap names – from Pets at Home and Helios Towers to Greencoat UK Wind and Trainline – also disclosed share repurchases.

In aggregate, this steady stream of buybacks continues to provide a technical tailwind for UK equities, even as investors brace for higher headline tax rates.

Investment trust updates

The Edinburgh Investment Trust published its half‑year financial report for the six months to 30 September 2025, offering an insight into how one of the UK’s best‑known equity income vehicles is navigating volatile markets and shifting sector leadership. ^[34]

Global backdrop: Fed cut hopes cushion UK risk assets

Today’s gains in London are not happening in isolation.

European indices such as the DAX and CAC 40 traded about 0.3% higher in early dealings. ^[35]
Overnight, Wall Street’s S&P 500 and Dow Jones advanced roughly 0.9% and 1.4%, while Japan’s Nikkei 225 added around 1.8%, helped by a rising implied probability – now above 80% – of a US rate cut in December, according to futures pricing referenced in market commentary. ^[36]

This global “risk‑on” tone is helping UK equities shrug off some of the anxiety around domestic fiscal tightening, at least for now.

What today’s moves mean for UK investors

From a market‑structure perspective, today’s session underlines several themes that are likely to remain important beyond Budget day:

Domestic vs global UK exposure
- The FTSE 100 remains heavily weighted to international earners in energy, mining, pharma and consumer staples.
- The FTSE 250 provides purer exposure to the UK cycle and to sectors – like housebuilders, infrastructure and UK‑focused retailers – that are highly sensitive to fiscal and monetary policy. ^[37]
Bond yields still call the shots
- With gilts trading at historically elevated yields and debt servicing costs already high, any Budget perceived as light on consolidation could quickly translate into higher yields – and pressure on rate‑sensitive equities such as utilities, REITs and growth stocks. ^[38]
Tax mix matters for sector performance
- A heavier bank surcharge and tighter rules on wealth and property would weigh on lenders, asset managers and parts of the real‑estate complex.
- Conversely, targeted cost‑of‑living support or green‑investment incentives could support consumer cyclicals, infrastructure funds and renewable‑energy names. ^[39]
FX and equities are telling slightly different stories
- Sterling’s recent rally suggests a degree of confidence that Reeves will deliver a credible Budget.
- Yet the cautious, sector‑specific nature of today’s equity moves shows that investors are still hedging their bets – tilting toward miners, defence and select domestic names while keeping one eye on bond yields and OBR forecasts. ^[40]

As the day progresses, volatility is likely to pick up around the 12:30 GMT Budget speech and the subsequent OBR release. Market participants will be watching three things in particular:

The scale and timing of tax rises
The impact on gilt issuance and yields
Any concrete measures aimed at boosting investment and productivity, rather than simply plugging fiscal holes ^[41]

For now, the message from the UK stock market on 26 November 2025 is clear: cautious optimism – with FTSE indices in the green, sterling firmer and miners leading the charge – but with plenty riding on whether Reeves can convince investors that Britain’s fiscal story is back on a sustainable, growth‑friendly path.

FTSE 100 hits record high, despite Starmer and budget concerns. Watch now to learn more!