Posted By Jessica Weisman-Pitts
Posted on October 29, 2024
By Shubham Batra and Nikhil Sharma
(Reuters) -The UK’s benchmark FTSE 100 fell on Tuesday due to broader declines led by the energy sector on losses in BP, while investors kept their focus on the upcoming budget later this week.
The blue-chip FTSE 100 fell 0.8%, as of 1621 GMT, while the midcap FTSE 250 index fell 1%, notching its lowest close in over one month.
One of the biggest contributors to overall losses was the energy sector, pulled down by a fall in oil prices and a 5% drop in heavyweight BP’s shares. [O/R]
BP reported a 30% drop in third-quarter profit to $2.3 billion, the lowest in almost four years, weighed down by weaker refining margins and oil trading results.
The aerospace and defence sector also slid 1.2%, partly affected by a 1.4% fall in engineering firm Rolls-Royce Holdings.
Czech electricity producer CEZ will take a minority stake in Rolls-Royce SMR to take part in the small nuclear reactor technology’s roll-out in Britain, the Czech Republic and beyond.
In contrast, HSBC Holdings jumped 3.1% after the lender posted a better-than-expected third-quarter profit on rising wealth and wholesale banking revenue, lifting the banking sector, up 0.8%.
Industrial metal miners also added 0.3% after copper prices bounced on renewed hopes a large fiscal stimulus package by top metal consumer China. [MET/L]
The personal goods index dropped 2.6%.
Among other movers, Pearson was up 3.6% after the British education company reported 5% growth in underlying sales in its third quarter, boosted by stronger performance in assessment and qualifications.
Investors were squarely focussed on the new government’s budget on Oct. 30, where finance minister Rachel Reeves will set out her first tax and spending plans, which must address a difficult fiscal picture without raising major taxes on workers.
Data showed British lenders approved 65,647 mortgages in September, the highest number since August 2022, shortly before the country was hit by the “mini-budget” bond market crisis under former Prime Minister Liz Truss.
(Reporting by Shubham Batra in Bengaluru; Editing by Rashmi Aich and Maju Samuel)
