FTSE 100 Edges Higher Helped by Falling Bond Yields

London’s FTSE 100 rose 0.2% to around 10,660 points on Wednesday, supported by falling global bond yields following the Democratic sweep in the US midterm elections. Investors also digested a fresh batch of corporate earnings while positioning ahead of the Bank of England’s monetary policy decision on Thursday. In the US, the unexpected political shift is seen as reducing the likelihood of further deficit-expanding legislation under the Trump administration. On the corporate front, Smith & Nephew fell more than 2% after cutting its full-year revenue and profit guidance on weaker-than-expected growth in Orthopaedics. Marks & Spencer dropped over 1% despite reporting first-half sales ahead of expectations, while JD Wetherspoon gained 0.8% after reporting higher like-for-like sales and expressing confidence in current market expectations. Meanwhile, markets widely expect the Bank of England to resume monetary tightening on Thursday, delivering its first interest rate hike since 2023.