The FTSE 100 experienced a downturn of approximately 0.4% on Wednesday, reversing gains made in the preceding four sessions and following a record high achieved on Tuesday. The decline was primarily driven by a drop in commodity stock values, influenced by falling oil and precious metal prices. Conversely, sectors traditionally considered less cyclical showed relative strength during the trading day.
- The FTSE 100 fell about 0.4%.
- The fall followed a record high on Tuesday and four consecutive sessions of gains.
- Heavyweight commodity stocks dragged the index down.
- Oil majors Shell and BP slipped over 2%.
- Fresnillo fell around 3% and Endeavour Mining was down about 1.2%.
- Vodafone rose about 2.4%.
- Utility companies Severn Trent, United Utilities and SSE also climbed.
The market experienced a shift in investor sentiment, with a move away from riskier assets like commodities and into more stable sectors such as telecommunications and utilities. This shift suggests a degree of caution amongst investors, potentially driven by concerns about commodity price volatility and external factors affecting the oil market. The performance of these safer sectors indicates that investors are seeking to protect capital in the face of perceived market uncertainty.