FTSE 100 rises as UK real estate stocks surge while global tech selloff weighs on sentiment

British markets ended Wednesday slightly higher as the FTSE 100 gained around 0.3 percent. The move was driven mainly by a strong rally in real estate stocks, which helped balance weakness coming from a global selloff in technology and semiconductor shares.

Across Europe, sentiment was mixed. Germany’s DAX fell 0.7 percentwhile France’s CAC 40 rose 0.5 percent. Currency markets also saw movement as the British pound slipped about 0.3 percent against the US dollar to 1.3166, reflecting cautious risk sentiment.

Even though global tech weakness weighed on broader mood, UK property stocks provided enough support to keep the FTSE in positive territory. Investors continued rotating away from high growth tech names into more defensive and income oriented sectors.

UK political transition and Bank of England rate expectations shape investor outlook

Market attention also remained fixed on political developments in the UK after leadership changes involving Keir Starmer. Discussions around a smooth transition and meetings with potential successor Andy Burnham added another layer of uncertainty for investors already dealing with global macro risks.

At the same time, traders are closely watching expectations around the Bank of England. Markets are pricing in a possible 25 basis point rate hike before the end of the year, largely due to inflation pressures linked to geopolitical tensions.

However, some policymakers have argued for keeping rates steady, pointing to signs of a cooling labor market. This disagreement has left investors uncertain about the direction of UK monetary policy, which continues to influence bond yields and currency movement.

Geopolitical tensions, energy prices and UK corporate updates drive a mixed market tone

Global geopolitical risk remained in focus but showed signs of easing. Shipping traffic through the Strait of Hormuz began normalizing as tensions between Iran and Israel cooled, helping reduce immediate supply concerns in energy markets.

Oil prices moved lower, with Brent crude dropping about 2.8% to 74.65 dollars and WTI falling 2.9% to 71.05 dollars. Gold also declined sharply, signaling reduced demand for safe haven assets during the session.

In UK corporate news, property and retail names saw mixed reactions. Berkeley Group reported weaker than expected annual profit due to higher costs and slower construction activity. Meanwhile, secret rejected a takeover proposal from Prologis valued at around 12.6 billion pounds, reinforcing its independent growth strategy.

Retail group B&M also made leadership changes by naming a new CFO designate, signalling longer-term planning across the sector.