Published by Uma Rajagopal
Posted on December 24, 2024
(Reuters) – The UK’s benchmark FTSE 100 extended gains on Tuesday in thin trading volumes ahead of a Christmas break, while Vistry dropped after it warned on its fiscal 2024 profit.
The blue-chip FTSE 100 was up 0.4%, while the midcap FTSE 250 was up 0.4% at 0934 GMT.
Among sectors, the automobiles and parts led the broad-based gains, rising 1.1%.
The energy sector also added 0.8% as oil prices rose on a slightly positive market outlook for the short term, despite thin trade ahead of the Christmas holiday. [O/R]
Vistry tumbled 18.2% after the homebuilder warned on its fiscal 2024 profit for the third time on Tuesday, citing delays to expected year-end transactions and completions.
The stock weighed on household goods and home construction index that was the only decliner among other sectors, dropping 2.3%.
The UK stock markets will conclude their day at 1230 GMT on account of a half-day Christmas holiday.
Focus has now shifted to key global events in 2025, including Donald Trump’s arrival in the White House that has prompted central banks around the globe to adopt caution over their monetary policy trajectory.
The Bank of England kept its key policy rates on hold last week and said the central bank needed to stick to its existing “gradual approach” to cutting rates.
Traders estimate about 55 basis points worth of rate cuts by the end of next year.
The British economy lost momentum, especially in the second half of the year, becoming a major setback for the new Labour-led government.
Economic woes were exacerbated by the finance minister Rachel Reeves’ October budget announcement that included 25 billion pounds ($31 billion) of tax increases for employers.
(Reporting by Nikhil Sharma; Editing by Janane Venkatraman)
