FTSE 100 moves ahead amid surprise US growth jump

The FTSE 100 was in festive mood on Tuesday, closing higher after a report showed improved UK business confidence and the US economy grew more than forecast in the third quarter.

The FTSE 100 index closed up 23.25 points, 0.2%, at 9,889.22. The FTSE 250 ended up just 6.83 points at 22,349.55, while the AIM All-Share closed down 1.67 points, 0.2%, at 758.81.

UK business confidence increased to 47% in December, rising five points from last month and standing 10 points higher than the start of 2025, according to the latest Lloyds Business Barometer.

In addition, optimism towards the wider economy reached a four-month high, up 11 points to 42%. The renewed economic optimism offset a slight dip in firms’ expectations for their own trading prospects, which decreased by one point to 52%.

“It is great to see business confidence ending the year on a higher note,” said Hann-Ju Ho, senior economist at Lloyds Commercial Banking.

Construction saw the sharpest improvement, up 22 points to 61%, its highest level seen this year.

Manufacturing also was up five points to 49%, while retail firms edged higher to 47%, likely reflecting seasonal demand.

In European equities, the CAC 40 in Paris closed down 0.2%, while the DAX 40 ended up 0.2%.

In Copenhagen, Novo Nordisk jumped 9.2% after the US Food and Drug Administration approved its once‑daily Wegovy pill, the first oral glucagon‑like peptide‑1 therapy cleared for weight management.

“As the first oral GLP-1 treatment for people living with overweight or obesity, the Wegovy pill provides patients with a new, convenient treatment option that can help patients start or continue their weight loss journey,” said Novo chief executive Mike Doustdar in a statement late on Monday.

The company expects to launch the Wegovy pill in the US in early January 2026.

Stocks in New York were higher at the time of the London equity market close. The Dow Jones Industrial Average was up 0.2%, while the S&P 500 and the Nasdaq Composite were both 0.3% higher.

The yield on the US 10-year Treasury was quoted at 4.18%, widened from 4.17%. The yield on the US 30-year Treasury was quoted at 4.84%, stretched from 4.83%.

Figures showed US economic growth accelerated in the third quarter of the year, markedly outperforming expectations.

According to Bureau of Economic Analysis data, US gross domestic product expanded 4.3% on an annualised basis quarter-on-quarter in the three months to September 30, easily beating the 3.3% growth predicted by consensus cited by FXStreet, and accelerating from a 3.8% expansion in the second quarter.

ING said the figure was “eye-popping”, primarily due to a strong performance from net trade with exports rising 8.8% and imports falling 4.7%, while consumer spending grew a robust 3.5% versus the 2.7% rate expected.

But while it was a “fantastic outcome”, ING noted fourth-quarter GDP is likely to record growth that is considerably slower, thanks in part to the effects of the month-long government shutdown.

“We also can’t see the net trade component continuing to make such a strong contribution while consumer spending is also set to slow,” ING added.

Other US data was mixed, with industrial production beating expectations, but consumer confidence and durable goods orders falling short of hopes.

The pound was quoted at 1.3481 US dollars at the time of the London equities close on Tuesday, up from 1.3452 on Monday.

The euro stood at 1.1777 dollars, higher against 1.1759 dollars. Against the yen, the dollar was trading lower at 156.37 yen compared to 156.95.

Back in London, Metlen Energy & Metals was the best FTSE 100 performer, rising 6.8%.

It said it has completed the sale of a portfolio of solar farms and co-located battery energy storage systems in Chile to a subsidiary of Glenfarne Group at enhanced terms.

Metlen is an Athens-based aluminium producer and electricity generator. Glenfarne is a New York and Houston-based developer, owner, operator, and industrial manager of energy and infrastructure assets.

In April, Metlen had said Glenfarne unit GAC RS Chile II Spa would pay 815 million dollars (£606 million) for the assets.

On Tuesday, Metlen said the final price to be paid is 865 million dollars (£643 million), reflecting the “value creation opportunities emerging in the Chilean market”.

Videndum plunged 56% as the provider of broadcasting hardware and software said a planned refinancing will, if successful, see current shareholdings “very significantly diluted”, while completion is also not guaranteed.

The firm said the main components of a refinancing proposal have now been agreed in principle with the revolving credit facility lenders and its two largest shareholders.

But the firm warned any share issue would be “very significantly below” their current nominal value of 20p per share.

Gut Gulf Marine Services fared better, climbing 11% after reporting a new contract award that covers two of its large-class vessels in Europe.

Neither the name of the client nor the financial terms of the contract were disclosed, but Gulf Marine Services said the award increases its contracted backlog to 540 million dollars.

Brent oil was quoted at 62.09 dollars a barrel at the time of the London equities close on Tuesday, up from 61.87 dollars late on Monday.

Gold traded at 4,462.05 dollars an ounce, up from 4,440.54 on Monday.

The biggest risers on the FTSE 100 were Metlen Energy & Metals, up 2.80 euro cents at 44.00 euro, Anglo American, up 88.00 pence at 2,993.00p, Antofagasta, up 67.00p at 3,235.00p, BT, up 2.80p at 185.05p and Airtel Africa, up 4.80p at 337.80p.

The biggest fallers on the FTSE 100 were Diageo, down 29.00p at 1,588.00p, Ashtead Group, down 78.00p at 5,192.00p, Convatec, down 3.20p at 238.60p, Burberry, down 16.00p at 1,261.50p and easyJet, down 6.29p at 506.80p.

Wednesday’s economic calendar includes US weekly jobless claims data.

There are no significant events scheduled in Wednesday’s UK corporate calendar.

– Contributed by Alliance News