Cautious Markets Eye US Elections and Bank of England Moves

Britain's stock markets saw slight gains as investors awaited U.S. election results. The FTSE 100 increased by 0.3%, with utilities leading the rise. Kamala Harris and Donald Trump remain neck-and-neck. The Bank of England's meeting on potential rate cuts and individual stock movements also garnered attention.

On Tuesday, Britain's main stock indexes experienced a slight uptick amid cautious investor sentiment as global attention was focused on the impending U.S. election results. The FTSE 100, a blue-chip index, rose by 0.3% to reach 8,211.69 points by 1105 GMT, setting it up for its longest winning streak in over a month.

The mid-cap FTSE 250 saw a marginal increase of 0.1%. The utilities sector emerged as the key contributor to the benchmark's advancement, registering a gain of 1.4%. Meanwhile, Democrat Kamala Harris and Republican Donald Trump remained closely matched in opinion polls, with elections underway. However, final results are expected to be delayed. Markets showed optimism due to potential shifts in Harris's favor according to polls, influencing recent gains.

Despite the U.S. elections dominating headlines, UK investors are also keenly anticipating the Bank of England's meeting on Thursday, where discussions on a possible 25 basis point rate cut are expected. Key stock movements included Schroders' 13% slump due to disappointing third-quarter outflows and TP ICAP's 4.6% revenue boost. Britain's services sector slightly weakened as indicated by the S&P Global UK Services PMI.

(With inputs from agencies.)