London Stocks Dip as WPP Shares Plunge and Investors Take Profits
London-listed stocks slipped on Thursday as investors paused after a strong rally and turned their attention to a wave of corporate earnings reports. The focus was on major names including advertising giant WPP, banking group Standard Chartered, and energy leader Shell.
The FTSE 100 dropped 0.6% by midday (1200 GMT), ending an eight-session winning streak, while the more domestically oriented FTSE 250 fell 0.7%. Earlier this week, the FTSE 100 hit record highs, driven by upbeat earnings from HSBC and GSK, alongside growing expectations of an interest rate cut by the U.S. Federal Reserve.
The Fed delivered a widely anticipated 25-basis-point rate cut on Wednesday but signaled that this could be the last reduction for the year.
According to Ipek Ozkardeskaya, senior market analyst at Swissquote Bank, the market’s pullback reflects “some profit-taking after hitting all-time highs,” combined with “disappointment that the Fed may not lower rates again next month.”
Corporate earnings in the UK continued to show mixed results. WPP shares plunged 14% to their lowest level in nearly two decades after new CEO Cindy Rose issued a profit warning. The company’s media buying division suffered a sharper-than-expected decline in third-quarter net revenue, making WPP the worst performer on the FTSE 100.
The automobile sector also faced pressure, dropping 2.2% after Volkswagen booked a €4.7 billion charge related to Porsche’s operations.
In contrast, Standard Chartered provided a rare bright spot, climbing 2% after announcing it would achieve a key profitability target a year earlier than planned, supported by better-than-expected third-quarter earnings.
Meanwhile, Shell reported strong third-quarter results that exceeded profit forecasts, though its shares dipped 0.2% in response to softer oil prices.
Elsewhere, shares of British lender Shawbrook surged 6.2% following London’s largest initial public offering (IPO) in two years.
On the global front, U.S. President Donald Trump said he reached an agreement with Chinese President Xi Jinping to reduce tariffs in exchange for China’s pledge to crack down on the illicit fentanyl trade — a move that could ease trade tensions between the two largest economies.
