UK's FTSE 100 drops as oil and defence stocks weigh on the index; domestic unemployment rises
?London's FTSE 100 fell on Tuesday due to losses in energy stocks and defence stocks. Investors also assessed new jobs data which reinforced expectations of a rate cut from the Bank of England in the coming week.
The UK blue-chip FTSE 100 index fell by 0.3% at 1022 GMT, after closing 1% higher in the previous session. Meanwhile, the midcap FTSE 250 was largely unchanged.
Energy stocks dropped?1.1% as oil prices fell, despite the prospect of a Russia-Ukraine deal looking more likely. This led to?expectations that sanctions could be eased.
Aerospace and Defence Index fell 1.8% after talks about a possible peace deal in Ukraine. Rolls-Royce BAE Systems and Babcock, Britain's largest listed defence companies, were all down between 1.4% and 4.1%.
U.S. officials stated on Monday that Ukraine could receive security assurances modeled on NATO's Article 5 Mutual Defence pledge as part of a proposed peace agreement with Russia.
Travel-focused index grew by 0.9%. At least 17 sectors traded in the green.
In the lead-up to the annual budget of finance minister Rachel Reeves last month, Britain's jobless rate reached its highest level since the beginning of?2021. The private sector's pay growth also slowed down to the lowest in five years. The poor jobs data has increased expectations that the Bank of England is going to cut rates on Thursday in order to boost a faltering economic situation.
IG Group, a stock trading platform, rose 5.6% among individual stocks after it said that revenue growth would be around the middle of its range in 2026.
Serica Energy's stock rose 2.71% following the announcement that it had acquired a portfolio from Spirit Energy of Southern North?Sea Assets.
Investors across the Atlantic remained cautious as they awaited a series of U.S. economic data, such as the jobs report that could help gauge Federal Reserve policy for next year.
Wall Street futures traded lower. (Reporting and editing by Tharuniyaa lakshmi in Bengaluru, Nikhil Sharma from New York; Leroy Leo is the editor)
(source: Reuters)
