London, May 13, 2026, 18:07 BST
London’s FTSE 100 finished Wednesday up 0.58%, recovering from early losses as gains in banks and mining stocks turned sentiment. The FTSE 250 advanced 0.28%. Among sectors, industrial miners jumped 4.36%, while banks booked a 1.44% rise.
The FTSE 100 closed up 60.03 points at 10,325.35, though that advance landed against a tougher market climate than the benchmark alone shows. The FTSE 250 climbed 62.17 points, ending the day at 22,528.37. Sterling nudged up to $1.3520, while the 10-year gilt yield — a measure of UK government borrowing costs — slipped to 5.07%.
Political jitters lingered in the market. “Markets remain sensitive to all news out of Westminster,” said Kathleen Brooks, research director at XTB. JPMorgan analyst Allan Monks flagged uncertainty over Labour’s leadership and direction on fiscal policy, calling it “hard to judge.” Morningstar
Intertek nudged the blue-chip index higher, fueled by deal activity. The product testing group’s board signaled it was “minded to recommend” EQT’s £60-a-share proposal—an offer valuing Intertek at £10.6 billion with debt—after turning down previous approaches. Dan Coatsworth, head of markets at AJ Bell, put it plainly: “one by one” companies are disappearing from the UK market. The Guardian
Some domestic stocks didn’t catch a break. Vistry shares slid to a 14-year low after the UK’s largest affordable housing builder flagged a profit warning, halted buybacks, and outlined plans to curb building and get stricter with land purchases. JPMorgan’s Zaim Beekawa called the guidance “disappointing given the magnitude of downgrades implied.” Berkeley, Barratt, Redrow, and Taylor Wimpey have also been retreating from land deals, linking Vistry’s caution to the slowdown gripping the sector. Reuters
Rates also weighed on sentiment. Out of 56 economists surveyed by Reuters, most still see the Bank of England holding Bank Rate steady at 3.75% this year. But almost 40% now anticipate at least one hike before the end of 2026—up sharply from the 23% saying so in April. HSBC’s Elizabeth Martins said she’s shifted her base case from “the good” to “the bad.” Reuters
Prediction markets echoed the caution, though in their own way. On Polymarket, traders were pricing an 83% chance the Bank of England holds steady on June 18, versus 17.5% odds for a quarter-point hike. Another Polymarket contract pegged the likelihood of at least one BoE hike in 2026 at 68%. Over on Kalshi’s politics page, markets gave Starmer a 48% chance of stepping down before July 1, and just a 25% shot before June 1.
UK markets tracked the broader European upswing. The STOXX 600 advanced, helped by softer oil prices and a still-intact U.S.-Iran ceasefire. But Joost van Leenders, senior investment strategist at Van Lanschot Kempen, pointed out that any optimism for a reopening of the Strait of Hormuz had already been “dashed.” Reuters
Inflation’s grip hasn’t eased in the U.S. April saw producer prices notch their sharpest increase since early 2022, coming in above forecasts. Jim Baird, chief investment officer at Plante Moran Financial Advisors, summed up the mood: inflation and interest rates remain the “key worry for investors” right now. Reuters
Still, Wednesday’s bounce looks shaky. Should oil prices rebound, bond yields tick up, or political drama in Westminster trigger talk of easier fiscal policy, those same dynamics helping banks might weigh on housebuilders, retailers, and other stocks sensitive to rising rates.
The London market, for the moment, wasn’t acting as a proxy for the UK economy. Instead, it was a tale of two camps—buyers showed up for global miners, banks, and potential takeover names. Domestic cyclicals, though, still faced a tougher crowd.
