The FTSE 100 experienced a slight downturn at the beginning of December, reflecting investor apprehension as they await upcoming US economic data releases. The market is also responding to anticipation surrounding a speech by the UK Prime Minister regarding welfare spending. Performance among major companies was mixed, with some sectors showing gains while others lagged.
- The FTSE 100 opened down 0.2%, settling around 9,700.
- November saw a modest 0.1% gain, marking the fifth consecutive monthly rise for the index, its best streak since 2021.
- Investor caution is rising due to forthcoming US economic data, which will influence interest rate outlooks.
- UK Prime Minister Keir Starmer is expected to address welfare spending in a speech later today.
- Rolls-Royce, BAE Systems, and Lloyds underperformed, declining 1%, 1.9%, and 1.1% respectively.
- Unilever and Reckitt gained 1.1% and 1.9% respectively.
- Glencore and Anglo American saw gains of 2.4% and 1.6% respectively.
The FTSE 100’s performance is being shaped by a combination of factors. Market sentiment is sensitive to global economic indicators, especially those from the US, given their influence on monetary policy. Domestic political developments, particularly those related to government spending, are also impacting investor confidence. Mixed performances among major companies suggest sector-specific dynamics are at play, with consumer goods and mining outperforming industrials and financials.