FTSE 100 ends lower after three sessions of gains, on weakness in banking, mining stocks
London’s FTSE 100 closed down on Monday, dragged by Barclays, which fell after a report said that the Bank of England was probing the lender, while weakness in miners added further pressure. The blue-chip FTSE 100 index fell 1.1% to 10,764.69 points after three consecutive sessions of gains. The midcap FTSE 250 slipped 0.6%, snapping a six-day winning streak. Unilever agreed to sell its Welly…
The FTSE 100 index ended lower on Monday, following three days of gains, as weakness in banking and mining stocks weighed on the market. Barclays was among the blue-chip stocks that suffered, falling 3.5% after a Financial Times report stated that the Bank of England was investigating whether the lender's traders had misrepresented the risk of private credit loans.
The FTSE 100 index dropped 1.1% to 10,764.69 points, while the mid-cap FTSE 250 index slipped 0.6%, marking the end of a six-day winning streak. Unilever's announcement to sell its Welly bandage brand to a private-equity firm Forward Consumer Partners was reported by the Wall Street Journal after markets closed. Among the major contributors to the index's decline were Anglo American and Glencore, with their shares falling 4.1% and 3.3%, respectively, amid a dip in copper prices.
Industrial metal miners, aerospace and defense stocks, and utilities also saw declines of more than 2% each. Investors will be closely monitoring UK September inflation and retail sales figures this week, as well as Finance Minister John Healey's first budget speech, which is scheduled for the following week. Reports suggest that income tax on family business transfers and potential windfall taxes on banks may be discussed in the budget.
In other news, British home prices saw an increase in October, but concerns over mortgage rate hikes, driven by the war in Iran, were starting to impact affordability. Serica Energy saw a 2.6% decline after announcing a further delay to the restart of its Triton production vessel and lowering its annual production forecast. Luxury handbag maker Mulberry gained 2.6% following an 18% jump in first-half sales.
Volex and Pets at Home saw gains in the FTSE 250, with the latter rising about 6.7% after receiving a rating upgrade from Peel Hunt. The risk appetite in Europe remained subdued as investors considered political uncertainty in France. Overall, the broader London market saw decliners outnumber advancers by a ratio of 2-to-1.
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