British stocks traded higher on Wednesday afternoon even as the pound slipped slightly before bouncing back above $1.34. Investors were reacting to several company updates and fresh comments from the Bank of England.
By midday, the FTSE 100 was up 0.8%, showing a solid session for the UK’s top firms. The pound was down 0.1% against the dollar, hovering just above the $1.34 mark. Elsewhere in Europe, Germany’s DAX gained 0.7% and France’s CAC 40 rose 0.8%, showing broad market optimism across the region.
The Bank of England’s Financial Policy Committee issued a cautionary note about growing risks of a sharp market correction. According to the minutes from its October 2 meeting, the committee pointed out several threats to financial stability, including rising geopolitical tensions, the breakdown of global trade ties, and increasing stress in government debt markets. The Bank warned that the UK, as a major global financial hub, could face serious effects if any of these risks materialize.
Among company movers, Barclays shares climbed 1.2% after the Financial Conduct Authority proposed an industry-wide compensation plan for motor finance customers who may have been treated unfairly between 2007 and 2024. The regulator’s plan is expected to have only a mild financial impact on Barclays.
Pub operator Marston’s reported another strong year of results. For the 52 weeks ending September 27, the company expects profit before tax to come in above market forecasts. This marks the second consecutive year of strong growth, following a 65% rise in profits in 2024.
Unite Group reaffirmed its full-year earnings outlook, expecting adjusted earnings per share between 47.5p and 48.25p. The student accommodation giant said rental income is expected to grow 4% for the 2025–26 academic year. It also confirmed steady property valuations and progress in acquiring Empiric Student Property.
Serica Energy’s shares were under pressure after the company warned that its production will fall below earlier forecasts. The problem stems from a halt at the Triton FPSO site due to a flare system issue that began on September 30. Production is expected to restart soon but will remain limited until the issue is fully resolved.
Meanwhile, Greencore Group lifted its profit outlook for fiscal 2025 to £125 million after a strong fourth quarter. The food manufacturer saw its revenue grow 8% in Q4, continuing its steady full-year performance. This marks another upgrade for the company after it raised guidance earlier in July.
Overall, UK markets were upbeat, but investors remained cautious following the Bank of England’s warning about potential financial instability amid global uncertainty.
