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The FTSE 100 was in a celebratory mood on Tuesday, closing higher after a report that showed improved UK business confidence and the US economy growing more than forecast in the third quarter.
The FTSE 100 index rose 23.25 points, 0.2%, to 9,889.22. The FTSE 250 closed just 6.83 points higher at 22,349.55, while Objective The All-Share closed down 1.67 points, 0.2%, at 758.81.
According to the latest Lloyds Business Barometer, UK business confidence rose to 47% in December, up five points from the previous month and 10 points higher than at the start of 2025.
Additionally, optimism about the broader economy rose 11 points to 42%, a four-month high. Renewed economic optimism offset a slight decline in companies’ expectations about their business prospects, which fell one point to 52%.
“It’s great to see business confidence at a high level at the end of the year,” said Han-Ju Ho, senior economist at Lloyds Commercial Banking.
Manufacturing saw the fastest improvement, rising 22 points to 61%, its highest level this year.
Manufacturing also rose five points to 49%, while retail companies rose by 47%, likely reflecting seasonal demand.
In European equities, the CAC 40 in Paris closed down 0.2%, while dex 40 finished up 0.2%.
In Copenhagen, Novo Nordisk jumped 9.2% U.S. Food and Drug Administration Its once-daily Vegovy pill was approved, the first oral glucagon-like peptide-1 therapy approved for weight management.
“As the first oral GLP-1 treatment for people who are overweight or obese, the Wegovi pill offers patients a new, convenient treatment option that can help patients begin or continue their weight loss journey,” Novo Chief Executive Mike Doustdar said in a statement late Monday.
The company expects to launch the Wegovi pill in the US as early as January 2026.
Stocks were high in New York at the time London Equity markets closed. The Dow Jones Industrial Average was up 0.2%, while the S&P 500 and Nasdaq Composite were both 0.3% higher.
The yield on US 10-year Treasuries was reported at 4.18%, up from 4.17%. The yield on the US 30-year Treasury was quoted at 4.84%, up from 4.83%.
US economic growth accelerated in the third quarter of the year, outperforming expectations, data showed.
According to data from the Bureau of Economic Analysis, US gross domestic product expanded 4.3% quarter-on-quarter on an annual basis in the three months to September 30, handily beating the 3.3% growth estimated by the consensus quoted by FXStreet, and faster than the 3.8% expansion in the second quarter.
Eng It said the figure was “surprising”, mainly due to the strong performance of net trade with exports rising 8.8% and imports falling 4.7%, while consumer spending grew a strong 3.5% compared to the expected 2.7%.
But while it was a “great result”, ING said fourth-quarter GDP growth was likely to be much slower, thanks in part to the effects of the month-long government shutdown.
“We also do not see the net trade component continuing to contribute such a strong contribution, while consumer spending is also set to slow,” ING said.
Other US data was mixed, with industrial production beating expectations, but consumer confidence and durable goods orders falling short of expectations.
At the close of the London Stock Exchange on Tuesday, the pound was valued at US$1.3481, up from US$1.3452 on Monday.
The euro stood at $1.1777, higher than $1.1759. Against the yen, the dollar was trading at 156.37 yen, down from 156.95.
In London, Metalen 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 Glenfern Group on enhanced terms.
Metalen is an Athens-based aluminum producer and power generator. Glenfarne is a developer, owner, operator and industrial manager of energy and infrastructure assets based in New York and Houston.
In April, Metlane said Glenfarne unit GAC would pay $815 million (£606 million) for the RS Chile II spa asset.
On Tuesday, Metlane said the final price to be paid was $865 million (£643 million), reflecting “emerging value creation opportunities in the Chilean market”.
Videndum, a provider of broadcasting hardware and software, fell 56% because the planned refinancing, if successful, would “significantly dilute” the current shareholding, while completion is also not guaranteed.
The firm said key components of the refinancing proposal have now been agreed in principle with the revolving credit facility lenders and its two largest shareholders.
But the firm warned that any share issues would be “significantly below” their current nominal price of 20p per share.
Gut Gulf Marine Services outperformed, climbing 11% after reporting a new contract award covering two of its large-class vessels in Europe.
Neither the name of the customer nor the financial terms of the contract were disclosed, but Gulf Marine Services said the award increases its contracted backlog to $540 million.
At the time of closing of the London Stock Exchange on Tuesday, the price of Brent oil was $ 62.09 per barrel, which was $ 61.87 late on Monday evening.
Gold traded at $4,462.05 an ounce on Monday, up from $4,440.54.
The biggest risers on the FTSE 100 were Metlane Energy & Metals, up 2.80 euro cents at 44.00 euros, Anglo American, up 88.00 pence at 2,993.00p, Antofagasta, up 67.00 pence at 3,235.00p, BT, up 2.80p at 185.05p and Airtel Africa, up 100.00 pence. 4.80p at 337.80p.
The biggest losers on the FTSE 100 were Diageo down 29.00p to 1,588.00p, Ashtead Group down 78.00p to 5,192.00p, Convetec down 3.20p to 238.60p, Burberry down 16.00p to 1,261.50p and EasyJet down 3.20p to 1,261.50p. 6.29p at 506.80p.
Wednesday’s economic calendar includes US weekly jobless claims data.
There are no significant events scheduled in the UK corporate calendar for Wednesday.
– Contributed by Alliance News