FTSE 100 Slips Slightly as Energy and Industrial Stocks Weigh
London’s FTSE 100 index edged slightly lower on Wednesday, pausing after two consecutive record-high closes, as industrial and energy shares declined, weighing on market momentum.
The blue-chip FTSE 100 slipped 0.1% to 9,886 points by 12:14 GMT, remaining close to the key 10,000-point threshold, while the FTSE 250 mid-cap index added 0.1%. Market optimism earlier in the week was supported by hopes of a U.S. government shutdown resolution, which could restore the flow of key economic data and guide the Federal Reserve’s next interest rate move.
Industrial and Energy Stocks Lead Declines
In the UK market, industrial stocks fell 1.3%, led by a 3.1% drop in Experian, despite the company forecasting full-year revenue growth of 11%, at the upper end of its guidance. AstraZeneca also retreated 0.5%, pulling the pharmaceutical and biotech sector down 0.6% after its record performance in the previous session.
Energy shares weakened as oil prices dipped, erasing part of Tuesday’s rally. BP and Shell slipped 0.8% and 0.3%, respectively. Homebuilders also underperformed, down 1.8%, with Taylor Wimpey tumbling nearly 4% after reporting a slower autumn sales season as buyers awaited the upcoming UK budget announcement.
Utilities and Personal Goods Buck the Trend
In contrast, personal goods stocks gained 3.2%, and utilities advanced 2.4%, supported by SSE, which surged 12.3% to a record high after unveiling a £33 billion ($44.29 billion) five-year investment plan to modernize the UK’s power networks and expand its renewable energy business.
Investors are now turning their focus to Thursday’s preliminary UK GDP data for Q3, which will offer valuable insight into economic performance ahead of the government’s budget announcement later this month.
Elsewhere, Smithson Investment jumped 6.7% after announcing plans to convert into an open-ended fund, while Avon Technologies surged 8.3% to a five-year high following a strong fiscal outlook.
($1 = £0.7451)
