The FTSE 100 remained relatively unchanged, struggling to keep pace with other European markets. Declining oil and metal prices impacted major commodity stocks, while positive GDP data and strong performance from Schroders offered some support. Homebuilders experienced a downturn following cautious outlook statements.
- The FTSE 100 hovered around flat.
- Falling oil and metals prices dragged on heavyweight commodity stocks.
- BP and Shell slid as crude prices fell.
- Miners retreated after a sharp rally earlier in the week: Fresnillo, Antofagasta, Rio Tinto and Anglo American moved lower.
- Precious metals pulled back from record highs.
- Schroders surged nearly 8% after saying earnings would beat expectations.
- Homebuilders underperformed after Taylor Wimpey struck a cautious tone.
- UK GDP grew 0.3% in November, beating forecasts.
The conflicting forces present a mixed outlook for the FTSE 100. Declines in the energy and mining sectors are a significant headwind. However, positive earnings reports from certain companies and stronger-than-expected economic data provide countervailing positive influences, potentially limiting downward movement and creating pockets of opportunity within specific sectors.