Published by Jessica Weisman-Pitts
Posted on November 19, 2024
2 min readLast updated: January 28, 2026
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(Reuters) – London stocks closed nearly flat on Tuesday after a choppy trading session, as investors avoided big bets ahead of a key inflation report and monitored tensions between Russia and the U.S. over Ukraine.
(Reuters) – London stocks closed nearly flat on Tuesday after a choppy trading session, as investors avoided big bets ahead of a key inflation report and monitored tensions between Russia and the U.S. over Ukraine.
The export-focussed FTSE 100 closed 0.11% lower, while the midcap FTSE 250 index pared early losses and ended higher by 0.17% aided by utilities stocks – a defensive sector. The midcaps index touched a three-month low during the session.
Globally, safe-haven assets such as gold and the U.S. dollar traded higher after Russia updated its nuclear doctrine by lowering its threshold for a nuclear retaliation as Ukraine said it used long-range U.S.-made missiles for the first time.
Personal goods index led the declines with a 2.7% fall, mostly affected by Burberry that slid 4.7%.
Mulberry Group fell 11% after the luxury group reported a wider first-half loss than a year earlier, and said it was taking steps to streamline its operations and improve margins under new CEO Andrea Baldo.
Imperial Brands rose 3% after reporting forecast-beating operating profit and said it expected another strong performance next year. The stock was among the top gainers on the FTSE 100.
Brokerage Goldman Sachs cut its forecast for the FTSE 100 for the next one year to 8,500 points from 8,800, while UBS upgraded its outlook on UK equities to “overweight.
So far into the year, the FTSE 100 index has risen 4.7%, a nudge above the pan-European STOXX 600 index’s 4.5% rise.
Investors were squarely focussed on Wednesday’s inflation report after Bank of England Governor Andrew Bailey said upcoming interest rate cuts should be more gradual following tax changes in the recent government budget, which retailers have flagged could feed price pressures.
A Reuters poll of economists suggest the BoE will keep policy rates unchanged in December in light of renewed worries over global inflation.
Among others, Diploma’s shares fell 7.2% to become the biggest loser on the blue chip index after the technical products and services provider missed annual revenue estimates.
In contrast, Vesuvius’s shares rose 9.3% to the top of the midcap index after the steel and foundry specialist launched a new 50 million pound ($63.18 million) share buyback.
(Reporting by Johann M Cherian and Nikhil Sharma in Bengaluru; Editing by Shinjini Ganguli and David Gregorio)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. Central banks attempt to limit inflation, and avoid deflation, to keep the economy running smoothly.
The FTSE 100 is a stock market index that represents the 100 largest companies listed on the London Stock Exchange by market capitalization. It is a key indicator of the UK stock market's performance.
The Bank of England is the central bank of the UK, responsible for monetary policy, issuing currency, and maintaining financial stability. It sets interest rates to control inflation and supports the economic framework.
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