London equities held steady on Tuesday, setting the stage for a favorable end to the third quarter. Meanwhile, ASOS faced a drop after the fashion retailer issued a revenue warning. The FTSE 100 has seen a modest increase of 0.1% as of 1122, while the FTSE 250 has risen by 0.2% amid fluctuating trading conditions, reflecting their respective sensitivities to global and domestic market trends. Financial stocks experienced an uptick, with HSBC increasing by 0.7%, while 3i Group and Lloyds Banking Group also saw slight gains.

Conversely, precious metal miners experienced a decline of 1.2%, leading the downturn among sectors, as prices for safe-haven gold, silver, and platinum decreased due to profit taking. Nonetheless, the primary indexes in the UK are positioned for quarterly increases, with the export-oriented index on track to achieve its most substantial quarterly rise since October 2022. The rise was primarily driven by positive sentiment arising from the trade deal between the U.S. and the UK established in May, along with expectations of a possible cut in interest rates by the U.S. Federal Reserve.

Nonetheless, concerns about the unstable fiscal environment at home had pushed gilt yields higher earlier this month, simultaneously limiting progress in midcap stocks that are centered on the domestic market. Investor unease was apparent across sectors, with precious metal miners poised to secure their highest quarterly gains ever. Businesses are gearing up for potential tax hikes in the UK government’s November budget as it aims to tackle shortfalls in public finances. The potential impact of gambling firms on the market influenced stocks such as Evoke, which experienced a decline of 1.8%.

Meanwhile, ASOS opens new tab warned that annual revenue would fall short of market expectations due to weak consumer demand, sending shares of the British fashion retailer down 10%. Close Brothers experienced a decline of 2.4% following the lender’s caution that its fiscal 2026 net interest margin would fall short of analysts’ expectations. BT Group has opened a new tab, experiencing a decline of 2.6% following the downgrade of the telecom stock by brokerage New Street Research from “buy” to “neutral.” The overall mood conveyed a negative perspective, especially as Washington approaches the potential for a government shutdown. On the data front, investors assessed a revised estimate of the UK’s second quarter gross domestic product.