Published : 4 weeks ago, on 05/11/2024

By Pranav Kashyap

(Reuters) – Britain’s main stock indexes saw a modest uptick on Tuesday, though a sense of caution lingered as investors worldwide focused on the impending results of the U.S. election.

The blue-chip FTSE 100 was up 0.3% to 8,211.69 points by 1105 GMT and was on track to post its longest winning streak in over a month, with three consecutive days of gains.

The mid-cap FTSE 250 edged up 0.1%.

The utilities sector was the biggest boost to the benchmark, gaining 1.4%.

Democrat Kamala Harris and Republican Donald Trump remain neck-and-neck in opinion polls, with voters due to cast their ballots later in the day, although the winner will likely not be known for days after voting ends.

“Markets were supported in the last couple of days by some signs that the polls may be moving in Harris’s favour,” said Ben Laidler, head of the equity strategy at Bradesco BBI.

“UK and European stocks may react positively to a Harris victory and probably to react negatively to a Trump one,”.

Analysts believe Trump’s policies on immigration, tax cuts and tariffs would put upward pressure on inflation and drive up bond yields and the dollar, while Harris is seen as the continuity candidate.

While the U.S. elections are hogging the limelight, UK investors are also looking ahead to the Bank of England’s meeting on Thursday, where there is anticipation of a potential 25 basis point rate cut.

Among individual stocks, Schroders, slumped 13%, falling to the bottoms of the FTSE 100 after the fund manager reported worse-than-expected third quarter outflows.

TP ICAP gained 4.6% after the inter-dealer broker reported a 10% increase in its third-quarter revenue.

Meanwhile, Britain’s services sector lost some momentum – the S&P Global UK Services Purchasing Managers Index stood at 52 last month from September’s 52.4.

(Reporting by Pranav Kashyap in Bengaluru; Editing by Tasim Zahid)