The FTSE 100 was in a festive mood on Tuesday, closing higher after a report showed an improvement in UK business confidence and the US economy growing more than expected in the third quarter.
The FTSE 100 index closed up 23.25 points, or 0.2%, at 9,889.22. The FTSE 250 finished up just 6.83 points at 22,349.55, while the AIM All-Share closed down 1.67 points, or 0.2%, at 758.81.
UK business confidence rose to 47% in December, five points higher than last month and 10 points higher than at the start of 2025, according to the latest Lloyds Business Barometer.
Additionally, optimism toward the broader economy hit a four-month high, up 11 points to 42%. Renewed economic optimism offset a slight drop in companies' expectations about their own business prospects, which fell by one point to 52%.
“It's 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 most pronounced improvement, rising 22 points to 61%, its highest level seen this year.
The manufacturing sector also rose five points to 49%, while retail companies rose to 47%, likely reflecting seasonal demand.
In European equities, the CAC 40 in Paris closed with a fall of 0.2%, while the DAX 40 ended with a rise of 0.2%.
In Copenhagen, Novo Nordisk jumped 9.2% after the U.S. Food and Drug Administration approved its once-daily pill Wegovy, the first oral glucagon-like peptide-1 therapy authorized 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 and convenient treatment option that can help them begin or continue their weight loss journey,” Novo CEO Mike Doustdar said in a statement late Monday.
The company hopes to launch the Wegovy pill in the US in early January 2026.
New York stocks rose as the London stock market closed. The Dow Jones Industrial Average rose 0.2%, while the S&P 500 and Nasdaq Composite rose 0.3%.
The 10-year US Treasury yield was quoted at 4.18%, widening from 4.17%. The yield on the 30-year US Treasury bond was trading at 4.84%, down from 4.83%.
The figures showed that US economic growth accelerated in the third quarter of the year, notably exceeding expectations.
According to data from the Bureau of Economic Analysis, US gross domestic product expanded an annualized 4.3% quarter-on-quarter in the three months through September 30, easily outpacing the 3.3% growth forecast by the consensus cited by FXStreet, and accelerating from a 3.8% expansion in the second quarter.
ING said the figure was “surprising”, mainly due to a strong net trade performance with exports rising 8.8% and imports falling 4.7%, while consumer spending grew a solid 3.5% against the expected rate of 2.7%.
But while it was a “fantastic result,” ING said fourth-quarter GDP is likely to see considerably slower growth, thanks in part to the effects of the month-long government shutdown.
“We also cannot see the net trade component continuing to make such a strong contribution while consumer spending also slows,” ING added.
Other US data was mixed: Industrial production beat expectations, but consumer confidence and durable goods orders fell short of expectations.
The pound was trading at 1.3481 US dollars at the close of the London Stock Exchange on Tuesday, up from 1.3452 on Monday.
The euro stood at $1.1777, down from $1.1759. Against the yen, the dollar was trading lower at 156.37 yen against 156.95 yen.
Back in London, Metlen Energy & Metals was the best stock on the FTSE 100, up 6.8%.
It said it completed the sale of a portfolio of solar farms and battery energy storage systems co-located in Chile to a subsidiary of Glenfarne Group on improved terms.
Metlen is an aluminum producer and electricity generator based in Athens. Glenfarne is an industrial developer, owner, operator and manager of energy and infrastructure assets based in New York and Houston.
In April, Metlen had said Glenfarne unit GAC RS Chile II Spa would pay $815m (£606m) for the assets.
On Tuesday, Metlen said the final price to pay is $865m (£643m), reflecting the “value creation opportunities that are emerging in the Chilean market”.
Videndum plunged 56% as the broadcast hardware and software provider said a planned refinancing, if successful, will see current holdings “diluted very significantly”, although its completion is also not guaranteed.
The firm said the main components of a refinancing proposal have already been agreed in principle with the lenders of the revolving credit facility and its two largest shareholders.
But the company warned that any share issue would be “very significantly below” its current face value of 20 pence per share.
Gut Gulf Marine Services fared better, rising 11% after reporting the award of a new contract covering two of its large-class vessels in Europe.
The name of the client and financial terms of the contract were not disclosed, but Gulf Marine Services said the award increases its contract portfolio to $540 million.
Brent oil was quoted at $62.09 per barrel at the close of the London Stock Exchange on Tuesday, compared to $61.87 on Monday.
Gold was trading at $4,462.05 an ounce, up from $4,440.54 on Monday.
The biggest risers on the FTSE 100 were Metlen Energy & Metals, which rose 2.80 euro cents to €44.00, Anglo American, which rose 88.00 pence to 2,993.00 pence, Antofagasta, which rose 67.00 pence to 3,235.00 pence, BT, which rose 2.80 pence to 185.05p and Airtel Africa, which rose 4.80p to 337.80p.
The biggest fallers on the FTSE 100 were Diageo, down 29.00p to 1,588.00p, Ashtead Group, down 78.00p to 5,192.00p, Convatec, down 3.20p to 238.60p. at 506.80p.
Wednesday's economic calendar includes weekly U.S. jobless claims data.
There are no major events scheduled on Wednesday's UK corporate calendar.
– Contributed by Alliance News
