The FTSE 100’s latest reshuffle hints at a changing UK market 

Mark Crouch, Market Analyst at eToro says: “Last week’s FTSE 100 reshuffle will offer a clue to investors where value, and risk, now reside in London’s flagship index. WPP’s relegation to the FTSE 250 after nearly three decades feels like a marker in the sand. Once the jewel of British advertising, its market value has collapsed from £24bn to just over £3bn as legacy agency models struggle against data-driven, in-house and AI-enabled competitors, compounded by shrinking client budgets. In its place sits British Land, a promotion that would have seemed unlikely not long ago. Commercial property has spent years in the doldrums, battered by higher rates and changing working patterns. Yet prime offices and logistics assets are now seeing renewed leasing demand as financing costs ease.

With the FTSE now pushing all-time highs near 9,900, it’s a remarkable feat given the backdrop of fiscal and economic uncertainty in the UK. And despite consumer headwinds and sluggish economic data, it has not deterred global investors, who still seem to be willing to scoop up the UK’s largest listed names, signalling confidence in their long term earnings power.”