FTSE 100 closes 0.43% lower at 10,782.66 after early rally

The FTSE 100 gave back an early push toward record territory on Thursday, November 5, and ended the London session at 10,782.66, down 46.55 points or 0.43% from the previous close. The closing level and daily move were reported by Reuters. The index had earlier reached 10,948.24, according to Hargreaves Lansdown.

Early rally fades into the close

Using the FTSE 100's November 4 close of 10,829.21 as the comparison level, the decline was approximately 0.43%. That prior close followed a 1.79% advance as investors reacted to the US midterm election result, falling oil prices and gains in banks and precious-metals miners. The FTSE 100 therefore moved from a strong previous-session rally to a lower close, despite briefly exceeding its earlier record closing high of 10,910.55 during Thursday's trading.

BoE decision increases policy focus

The Bank of England's Monetary Policy Committee raised Bank Rate by 25 basis points to 4.00% from 3.75%, its first increase since August 2023. The vote was 8-1, with Catherine Mann preferring a 50-basis-point increase to 4.25%. The central bank warned that inflation could reach around 5% by the middle of next year if energy pressures persist. The rate decision was widely expected, but the voting split and comments about possible further tightening increased the focus on borrowing costs and the outlook for domestic demand.

Banks, defence and consumer shares weigh

Financials were the largest sector drag, with HSBC, Standard Chartered, NatWest Group and Barclays among the banks that declined after posting strong gains on Wednesday. Aerospace and defence stocks also weakened. Reuters reported a 3% fall for the sector, citing concerns that a Democratic sweep in the US Congress could bring greater scrutiny of military spending; BAE Systems fell 5.4% and Rolls-Royce lost 1.8%.

Coca-Cola HBC was the sharpest FTSE 100 faller, down nearly 18% after reports concerning its Russian business, while Hikma Pharmaceuticals declined after lowering the upper end of its annual profit forecast range. Precious-metals miners provided some support as higher gold prices lifted the sector. Defensive retailers and personal-care, drug and grocery companies also gained.

US technology sell-off adds pressure

Late trading sentiment was further affected by a sharp fall in US technology shares. Hargreaves Lansdown reported that the S&P 500 and Nasdaq were trading materially lower as investors reassessed the outlook for artificial-intelligence infrastructure and data-centre spending after the US election. The FTSE 100's limited technology weighting and its exposure to banks, miners and defensive companies shaped the day's different performance profile, but the broader risk-off move helped erase London's early gains.

Further FTSE 100 coverage is available on the FTSE 100 topic page.