The FTSE 100 experienced a mixed trading day, closing marginally higher at 9,196. Early gains were curtailed by weakness in utilities, although strength in defense and precious metals stocks provided some support. Investors are anticipating upcoming U.S. economic data, while also digesting domestic economic signals, including credit data and manufacturing PMI figures.
- The FTSE 100 closed at 9,196.
- Defense stocks like Babcock, Rolls-Royce, and BAE Systems rose due to a £10 billion warship deal with Norway.
- Endeavour and Fresnillo performed well as gold prices neared record highs and silver reached a 14-year high.
- Domino’s Pizza announced a £20m share buyback, leading to a rally in its stock.
- SSE Plc, United Utilities Group, Severn Trent and 3i Group experienced the largest declines.
- A fresh PMI survey showed the UK’s manufacturing sector downturn continued in August.
- Bank of England data revealed healthy credit flows and increasing mortgage approvals.
The minor gains in the FTSE 100 reflect a market navigating contrasting forces. Positive momentum in specific sectors, fueled by international deals and precious metal prices, was offset by declines in others and concerns about the manufacturing sector. The health of the British economy appears mixed, with some indicators suggesting underlying strength while others point to ongoing challenges. This suggests a period of careful monitoring and selective investment strategies within the FTSE 100.