Stocks in London ended lower on Tuesday as a fresh US strike on Iran added to nerves ahead of midterm elections in the United States.
The FTSE 100 closed down 122.90 points, or 1.1%, at 10,638.43. The FTSE 250 fell 120.94 points, or 0.5%, to 24,674.91, and the AIM All-Share declined 3.32 points, or 0.4%, to 754.60. In Europe, Paris’s CAC 40 ended 0.2% lower and Frankfurt’s DAX 40 shed 0.5%. Around the London close, New York was mixed: the Dow Jones Industrial Average was down 0.3%, while the S&P 500 was 0.5% higher and the Nasdaq Composite rose 0.9%.
Investors were wary as US voters headed to the polls. The midterms are expected to set back Donald Trump, with Democrats hoping to take control of Congress and impose the first significant checks on his second term. All 435 House seats are being contested. Republicans are defending a narrow majority, and Democrats need a net gain of four seats. In the Senate, 35 seats are up. Republicans hold 53 seats to the Democrats’ 47, so Democrats also need a net gain of four for a majority.
Ulrike Hoffmann-Burchardi, global head of equities at UBS Chief Investment Office, said a Democratic sweep remains the highest-probability outcome, while noting that the Senate is closely fought and the size of any majority is uncertain. She said polling in a number of Senate races is within the margin of error, and that past elections show polls can misjudge turnout or miss drivers that become clear only after voting.
In a final television phone-in on the morning of the elections, Mr Trump defended his record, citing his immigration crackdown, the war on Iran and tariff policy. He told Fox & Friends: “We have to keep America great. We’re great now. We were terrible two years ago.”
US labour data suggested the jobs market remains resilient. The Bureau of Labour Statistics’ Job Openings and Labour Turnover Survey said openings rose to 7.523 million in September from a revised 7.190 million in August and 7.169 million a year earlier. FXStreet consensus had forecast 7.13 million. Ahead of Friday’s jobs report, the same consensus expects the US economy to have added 65,000 jobs in October, up from 29,000 in September.
Oil stayed in focus after Mr Trump confirmed the United States had launched a strike on Iran, following reports of attacks on Qeshm Island in the Strait of Hormuz. In a Fox News interview he said: “They built an anti-aircraft facility… As soon as it was completed, we hit it last night very nicely,” calling it a “minor attack.” The strike came hours after he signalled a deal with Iran “could happen,” with the campaign dominated by dissatisfaction over the war and the inflation it has brought. On Truth Social he wrote: “Iran wants a settlement, as soon as possible.” David Morrison, an analyst at Trade Nation, said the likelihood of a peace deal “being reached anytime soon looks slim at best.”
Brent still edged lower after a sharp fall on Monday, trading at 103.24 dollars a barrel against 105.09 dollars late on Monday. Sterling was little changed at 1.3416 dollars, from 1.3417, and firmed to 1.1986 euro from 1.1980. The euro eased to 1.1197 dollars from 1.1200, while the dollar rose to 158.44 yen from 157.82. The US 10-year Treasury yield was 4.94%, from 4.89%, and the 30-year yield was 5.30%, from 5.25%.
On the FTSE 100, Bermuda-based insurer Hiscox rose 3.0% after reporting a nearly 10% increase in insurance contract written premiums in the first nine months of 2026 and saying third-quarter claims were within expectations, with few natural catastrophes offsetting shipping losses in the Middle East. Primark owner AB Foods, which is based in London and also owns Twinings, Levi Roots, Hovis Bakeries and Jordans, fell 2.2%. Results were broadly in line with a recent trading statement, but the grocery outlook was trimmed and sugar is forecast to stay loss-making.
Weaker metals pressured miners. Gold was quoted at 3,933.38 dollars an ounce, or £2,933, down from 3,968.02 dollars, or £2,959. Silver fell 1.6% and copper 2.5%. Endeavour Mining, Glencore, Antofagasta and Anglo American dropped 4.7%, 2.8%, 3.5% and 2.8% respectively.
On the FTSE 250, International Workplace Group gained 8.6% after saying it expects to beat consensus for all of 2026. The Zug-based hybrid-workspace group, which operates Regus and other brands, now expects adjusted Ebitda above the current consensus of 599 million dollars (£446 million), against a previous range of 585 million to 625 million dollars. Drax, the Selby electricity generator, added 6.6% after agreeing with New York-based Brookfield Asset Management and Radiant, Brookfield’s UK-headquartered AI platform, to develop and operate an AI data centre on the Drax Power Station estate. The plan targets more than 1 gigawatt. Brookfield estimates total potential investment, including chips, could exceed £20 billion, with an initial £2.5 billion in phase one.
The biggest FTSE 100 risers were Hiscox, up 56.00p at 1,939.00p; Babcock International, up 16.00p at 1,047.50p; 3i Group, up 34.00p at 2,562.00p; WPP, up 5.20p at 413.20p; and Prudential, up 11.00p at 944.20p. The biggest fallers were Endeavour Mining, down 177.00p at 3,557.00p; Barratt Redrow, down 15.60p at 319.00p; Antofagasta, down 115.00p at 3,138.00p; Compass Group, down 0.99 dollars at 33.50 dollars; and Glencore, down 14.70p at 504.30p.
Wednesday brings composite and services PMI reports, including the UK reading at 9.30am GMT, plus eurozone inflation, US trade data and the ADP jobs report. Marks & Spencer reports half-year results and Barratt Redrow issues a trading statement.