London's FTSE 100 gave back a strong early advance to close lower on Thursday, as the Bank of England's first interest-rate rise in more than three years and a sharp sell-off in US technology shares soured sentiment.

The index had climbed towards record territory in morning trading, reaching 10,948.24, according to Hargreaves Lansdown, after Wall Street's post-midterm rally and ahead of the Bank's decision. It ended the session at 10,782.66, down 46.55 points or 0.43% from Wednesday's close of 10,829.21, Alliance News reported via the London Stock Exchange. The FTSE 250 ended 213.71 lower, or 0.9%, at 24,701.98.

Banks and defence weigh

Banking stocks led the early rise, extending Wednesday's gains as investors positioned for higher borrowing costs, but financials ended as the largest sector drag. HSBC, Standard Chartered, NatWest Group and Barclays were among the banks that fell. Aerospace and defence stocks also weakened, with the sector down 3%, Reuters reported, citing concern that a Democratic sweep in the US Congress could bring greater scrutiny of military spending. BAE Systems fell 5.4% and Rolls-Royce lost 1.8%.

Coca-Cola HBC was the sharpest FTSE 100 faller, down nearly 18% after reports concerning its Russian business, while Hikma Pharmaceuticals declined after lowering the upper end of its annual profit forecast range. Precious-metal miners had been among the morning's gainers, rising 5% as gold climbed to a two-week high.

The Bank's Monetary Policy Committee voted 8–1 to raise Bank Rate by a quarter of a point to 4%, its first increase since August 2023. The single dissenter, Catherine Mann, voted for a larger half-point rise to 4.25%. No record closing high for the FTSE 100 is claimed here. Market moves are not investment advice.

Sources: Alliance News via LSE, London market close — hawkish BoE lifts rates and US stocks plummet, 5 November 2026; Reuters via TradingView, UK's midcap index at record high ahead of Bank of England rate call, 5 November 2026; Sharecast via LSE, London midday — FTSE maintains gains after BoE hikes rates, 5 November 2026.