The FTSE 100 experienced a slight decline, ending a nine-day rally. Investor risk appetite waned, leading to selling pressure in banking and mining sectors. Disappointing results from WPP and concerns about China impacted several large companies. However, Fresnillo’s acquisition news provided some positive momentum, while Princes Group’s IPO occurred at the lower end of expectations. All eyes are now on the upcoming Bank of England meeting.
- The FTSE 100 fell 0.3% to 9,730.
- The index pulled back from Thursday’s record high.
- Investor sentiment cooled as traders trimmed exposure to riskier assets.
- Banking stocks and miners weighed on the index.
- WPP lost 1.6% after posting weak third-quarter results.
- Burberry (-2.6%), Standard Chartered (-1.6%), and HSBC (-0.9%) also declined amid concerns over China’s economic outlook.
- Fresnillo gained 1.4% after announcing plans to acquire Canadian gold miner Probe for about £424 million.
- Princes Group priced its IPO at 475 pence per share, valuing the company at £1.16 billion.
- Investors await the Bank of England meeting, where rates are expected to remain on hold.
The market’s slight downturn suggests a period of consolidation after recent gains. Sector-specific challenges, such as weak earnings and external economic concerns, are creating headwinds for some large corporations. Strategic moves by individual companies, like acquisitions, offer some pockets of opportunity. The upcoming monetary policy decision is anticipated to bring clarity regarding future economic conditions.