Finance

FTSE 100 Dips: Will Upcoming UK Budget and Economic Data Deepen London Stock Losses?

London stocks fell Monday, led by financials, as investors await key data and the UK budget.

byAndres Castro

November 17, 2025, 9:24 AM

Exterior view of the London Stock Exchange Group (LSEG) offices with its coat of arms and acronym.

The LSEG acronym and coat of arms on the stone facade of the company's London offices. By David G40 / Shutterstock.com.

Executive Summary

London stocks, including the FTSE 100 and FTSE 250, experienced declines, with the heavyweight banking sector leading the downturn.

The Construction & Materials sector fell due to weakening UK home prices and anticipation of a potential levy on high-value homes in the upcoming UK budget.

Investors are focused on the UK’s inflation report, the budget announcement, and the Bank of England’s interest rate decision, alongside global economic data.

The Story So Far

London stocks are experiencing declines as investors anticipate a crucial week featuring the UK’s upcoming budget announcement, which may include new levies, and key economic data releases, particularly the UK’s inflation report, which will influence the Bank of England’s interest rate decisions. This cautious sentiment is further exacerbated by recent reports indicating weakening UK home prices.

Why This Matters

London’s declining stock market, particularly in the financial and construction sectors, signals significant investor caution ahead of crucial UK economic data releases, including inflation reports and the upcoming national budget. These developments, coupled with weakening home prices and potential new levies, will heavily influence the Bank of England’s interest rate decisions and could lead to sustained market volatility and economic adjustments in the near term.

Who Thinks What?

Investors are showing caution and selling off, leading to a third consecutive session of losses for the FTSE 100 and a fourth for the FTSE 250, as they await crucial economic data and the upcoming UK budget announcement.

The banking sector, including major players like Barclays, HSBC, and Standard Chartered, is experiencing significant declines, contributing heavily to the broader market’s cautious start to the week.

The Construction & Materials sector is falling due to a reported weakening of UK home prices and the anticipation of a potential new levy on high-value homes in the upcoming budget.

London stocks experienced declines on Monday, November 17, with the financial sector leading the downturn, as investors prepared for a week featuring crucial economic data releases and an upcoming UK budget announcement. The blue-chip FTSE 100 index slipped 0.2%, marking its third consecutive session of losses, while the mid-cap FTSE 250 index fell 0.4%, poised for its fourth straight day of decline.

Market Performance and Sector Trends

The heavyweight banking sector saw a 0.8% decrease, with major players such as Barclays, HSBC, and Standard Chartered experiencing drops between 0.7% and 1%. This weakness contributed significantly to the broader market’s cautious start to the week.

In contrast, advertising group WPP’s shares rose 5% following a report by The Times, citing sources, that the firm had attracted takeover interest. French rival Havas and private equity firms Apollo and KKR were identified as potentially interested parties.

The Construction & Materials sector fell 1.2% after a survey from property website Rightmove indicated weakening UK home prices. The report showed a 1.8% decline in asking prices in the four weeks to November 8, marking the largest fall for this period since 2012. Additionally, The Telegraph reported that finance minister Rachel Reeves is expected to introduce a levy on high-value homes in her annual budget on November 26.

Economic Outlook and Company Specifics

Market attention is now shifting towards the UK’s inflation report, which is due this week, as the budget announcement approaches and the Bank of England considers its interest rate decision ahead of its December 18 monetary policy meeting. Globally, investors are also focusing on upcoming U.S. jobs data and quarterly results from AI powerhouse Nvidia.

Back in the UK, metal miners experienced a 0.9% drop as copper prices declined. HICL Infrastructure shares plunged 7.3% following its announcement of a £3.98 billion ($5.2 billion) merger deal with The Renewables Infrastructure. Water solutions manufacturer Genuit also saw a significant slump of 13.2% after forecasting full-year profit below market estimates.