London Stocks Rally as Healthcare Leads Gains Amid U.S. Shutdown Fears

29 September 2025

London’s markets opened the week on a high note, with both the FTSE 100 and FTSE 250 advancing approximately 0.6 percent as investors pushed into healthcare names and sought safe havens amid mounting uncertainty about a looming U.S. government shutdown.

Pharmaceutical firms drew particular interest. GSK shares jumped some 2.3 percent after its CEO, Emma Walmsley, announced she would step down in December and be replaced by Luke Miels a change that many analysts interpreted as injecting fresh energy into the company’s direction. AstraZeneca also saw gains, rising around 1 percent after unveiling plans to directly list on the New York Stock Exchange while maintaining its London base and export ties.

In addition to strength in healthcare, the metals and mining sector lit up. Precious metal miners climbed 2.2 percent as gold prices hit new highs, fueled by expectations of U.S. interest rate cuts and safe-asset demand in light of the shutdown risk.

But the rally was not entirely driven by domestic sentiment. Traders were also watching Washington closely, as President Trump was due to meet congressional leaders to negotiate funding. Without an agreement, a government shutdown could begin midweek, putting in jeopardy the release of key U.S. economic data such as the September jobs report.

At home, signals in the U.K. added complexity. Surveys suggested continued softening in Britain’s labor market and persistent business pessimism about the months ahead. With those headwinds looming, investors viewed the rally with measured optimism.

Meanwhile, all eyes turned toward the second-quarter GDP figures set to be published Tuesday, which could help ground coming market expectations.