FTSE 100 retreats as financial and energy stocks drag, GDP data disappoints
London’s FTSE 100 fell 0.6% due to disappointing Q3 GDP data and declines in financial and energy stocks. The FTSE 250 also dipped 0.3%. Aviva's financial targets and 3i Group's cautious investment approach contributed to the decline. The UK economy barely expanded in Q3, reinforcing expectations for a Bank of England interest rate cut in December. Sterling briefly dropped but recovered. Precious metal miners and some individual stocks like Persimmon, Burberry, and Wizz Air saw gains.
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FTSE 100 slips 0.6%, FTSE 250 down 0.3%
Aviva’s financial targets disappoint investors
3i Group cautious on new investments
UK economy barely expands in Q3
Nov 13 (Reuters) - London’s FTSE 100 fell on Thursday after a three-day run of record highs, dragged by financial and energy shares, as investors assessed disappointing third-quarter economic growth data.
The blue-chip index (.FTSE) was down 0.6% as of 12:11 GMT, though it remained within reach of the significant 10,000 points milestone.
The mid-cap FTSE 250 (.FTMC) also dipped 0.3%.
Investment banks & brokerages (.FTNMX302020) dropped 6.3%, as investment firm 3i Group (III.L) slumped 14.6%, set for its worst day since May 2022, after the company said it is cautious in deployment of capital into new investment.
Energy sector (.FTNMX601010) declined 1.1% after a report showing rising crude inventories in the U.S. reinforced oversupply concerns, bringing down oil prices.
Britain’s economic performance showed minimal momentum in the third quarter, with growth hampered by a cyber attack on Jaguar Land Rover in September.
This lacklustre showing reinforced market expectations for an interest rate cut from the Bank of England in December. Finance Minister Rachel Reeves’ budget announcement is scheduled for November 26.
Sterling (GBP=) briefly touched a session low following the data release before recovering to trade 0.2% higher.
Global markets remained focused on the flow of economic data from the U.S. after President Donald Trump signed legislation ending the country’s longest government shutdown. The 43-day data blackout left both the Federal Reserve and traders uncertain about labour market conditions and inflation trends.
Life insurers (.FTNMX303010) fell 1.3% on Thursday, as Aviva (AV.L) dropped 4.3% after the insurer’s new financial targets failed to impress investors.
But precious metal miners (.FTNMX551030) climbed 8.2% as gold prices hit a more than three-week high.
Homebuilder Persimmon (PSN.L) rose 2.3% after reporting a rise in its forward sales despite consumer uncertainty.
Burberry (BRBY.L) shares rose 2.4%, hitting their highest since July 29, after the luxury brand posted its first quarter of growth in two years.
Wizz Air’s (WIZZ.L) shares climbed 8.7% after the airline reported strong first-half operating profit.
