FTSE 100 hits new record despite US government shutdown. Pharmaceutical stocks lead the index higher.

The FTSE 100 index rose 0.7% to a new record high of 9,417.80, despite US government shutdown jitters. Pharmaceutical stocks led the gains, with AstraZeneca up 6.8% and peers Hikma Pharmaceuticals and GSK rising 4.1% and 2.8% respectively. Economic data showed a worsening downturn in UK manufacturing in September, with output, orders, and employment all falling at sharper rates. Sterling strengthened against the dollar and euro.

The FTSE 100 index rose 0.7% to a new record high of 9,417.80 on September 12, 2025, despite jitters from the ongoing US government shutdown. The index, which closed the previous month and quarter at an all-time high of 9,350.43, added 50.6 points to reach the new peak FTSE 100 Live: London stocks blast above 9,400 as AstraZeneca gets US booster^[1].

Pharmaceutical stocks were the primary drivers of the FTSE 100's gains. AstraZeneca PLC (LSE:AZN, NASDAQ:AZN) surged 6.8%, while Hikma Pharmaceuticals PLC (LSE:HIK, OTC:HKMPF) and GSK PLC (LSE:GSK, NYSE:GSK) rose 4.1% and 2.8%, respectively. This performance was likely influenced by the recent Pfizer deal on 'most favoured nation' (MFN) pricing with the Trump administration .

The FTSE 100's advance was not without challenges, as the UK manufacturing sector continued to face a downturn. The manufacturing PMI index fell to a five-month low of 46.2 in September, indicating a further decline in production and order intakes . The UK manufacturing sector has been under pressure due to subdued client confidence, US tariff uncertainty, and high energy and staff costs. Despite these challenges, there were signs of hope, with some firms noting that lean inventories and potential subsidence of market and global trade uncertainties could boost production volumes .

Sterling strengthened against the dollar and euro, reflecting the UK's resilience in the face of US government shutdown concerns. The pound pushed back above 1.35 against the dollar, despite ongoing political noise in the UK .

Looking ahead, the FTSE 100 is expected to pause for breath as the month of October and the final quarter of the year begin. Futures for the London benchmark were wavering between gains and losses of two or three points, indicating a cautious approach from investors FTSE 100 Live: London stocks blast above 9,400 as AstraZeneca gets US booster^[1].