FTSE 100 ends lower after three sessions of gains, on weakness in banking, mining stocks
- FTSE 100 index fell 1.1% to 10,764.69 points
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 bandage brand to private-equity firm Forward Consumer Partners, the Wall Street Journal reported after markets closed.
Barclays fell 3.5% as a report by The Financial Times said the Bank of England was examining whether the lender’s traders misrepresented illiquid private credit loans to understate their risk.
The broader sector was down 2.3%.
Anglo American and Glencore fell 4.1% and 3.3%, respectively, among the benchmark’s biggest drags, as copper prices dipped.
Industrial metal miners, aerospace and defence stocks and utilities were also down more than 2% each.
Investors will be watching for UK September inflation and retail sales figures this week, just as earnings season gets underway.
Finance Minister John Healey’s first budget speech is due next week. According to media reports, income tax on family business transfers and windfall taxes on banks are expected.
Asking prices for British homes rose in October amid signs that rising mortgage rates — caused by the war in Iran — were starting to weigh on affordability and more resilient parts of the market, property website Rightmove said.
Serica Energy fell 2.6% after flagging a further delay to the restart of its Triton production vessel and lowering its annual production forecast
Luxury handbag maker Mulberry gained 2.6% after reporting an 18% jump in first-half sales.
Volex bottomed the FTSE 250 after its half-year trading update, while Pets at Home rose about 6.7% after Peel Hunt’s rating upgrade.
Risk appetite was subdued in Europe as investors weighed political uncertainty in France.
In the broader London market, decliners outnumbered advancers by a 2-to-1 margin.