(Reuters) -London's FTSE 100 reached a fresh intraday peak on Wednesday, propelled by gains in the healthcare sector, while investors assessed the ramifications of the U.S. government shutdown on the
London's FTSE 100 closes at new record, powered by healthcare
Healthcare Sector Drives FTSE 100 Growth
(Reuters) -London's FTSE 100 closed at another record high on Wednesday, propelled by gains in the healthcare sector, while investors navigated the uncertainties stemming from the U.S. government shutdown.
Key Contributors to Market Performance
The blue-chip index rose 1.03% to 9446.43 points, surpassing its previous record-breaking close posted a day earlier.
Economic Indicators and Market Reactions
Healthcare emerged as the standout performer on the day, surging 8.7%.
Impact of U.S. Government Shutdown
It came a day after Pfizer and President Donald Trump said the U.S.-based drugmaker had agreed to lower prescription drug prices in the Medicaid programme in exchange for tariff relief.
Manufacturing and Housing Market Insights
Industry giant AstraZeneca rallied 11.2%, marking its biggest single-day gain since May 2017.
Meanwhile, Hikma Pharmaceuticals and GSK were up 5.7% and 6.1% respectively, in tandem with their European counterparts.
The midcap FTSE 250 finished 0.2% higher after early session declines, boosted by advances in real estate and consumer discretionary sectors.
Greggs rose 6.4%, providing the biggest boost to the index after the bakery and fast-food chain reported a 6.1% rise in third-quarter total sales, noting improved business conditions through August and September.
On the data front, British manufacturing activity shrank at the fastest pace in five months in September, reflecting subdued domestic demand and fewer export orders, according to a survey.
Separately, house prices rose slightly faster than expected in September with a 0.5% increase, mortgage lender Nationwide Building Society said.
An index of the UK's home building companies ended 1.2% higher.
The aerospace and defence index lost the most among sectors, down 1%, after gaining more than 2% in the previous session.
Among other stocks, Tate & Lyle was the biggest drag on the index after the food ingredients maker warned that its annual profit and revenue would fall due to a demand slowdown in the Americas, its key market. Its shares plummeted 13% to levels not seen since 2009.
Globally, markets face fresh uncertainty from the U.S. government shutdown that took effect Wednesday, particularly as traders remain sensitive to signals about the Federal Reserve's policy direction.
(Reporting by Ragini Mathur in Bengaluru; Editing by Shreya Biswas and Alison Williams)
