The UK's FTSE100 is down as energy and industrial shares weigh
The FTSE 100 index in London dipped on Wednesday, after two sessions of record-high levels. Losses in energy and industrial shares weighed heavily on the market.
Blue-chip index fell 0.1% to 9,886 as of 1214 GMT. However, it is still nearing record levels and within striking range of the 10,000 point. The mid-cap index FTSE 250 rose 0.1%.
The market sentiment improved this week as investors hoped for a resolution to the U.S. Government shutdown.
Investors expect that the U.S. House of Representatives will vote soon to end the shutdown, which has prevented the release of important economic data. This resolution will likely give Federal Reserve greater clarity in its upcoming interest rate decisions.
Experian, a credit data specialist, fell 3.1% in the UK, despite its forecast of a 11% revenue increase for the full year, which is at or near the top of their outlook range.
AstraZeneca, the pharmaceutical giant, fell 0.5% from its previous record high. The pharmaceutical and biotechnology industry as a whole fell 0.6%.
Oil prices dropped after Tuesday's spike, and energy shares fell, with oil giants BP and Shell dropping 0.8% and 0.3% respectively.
Homebuilders declined 1.8%. Taylor Wimpey shares dropped nearly 4% following a report of a weaker autumn selling season, as British buyers reacted cautiously ahead of the Budget announcement.
Personal goods grew the most, by 3.2%.
Utilities rose 2.4%, while SSE soared 12.3% and reached a new record after announcing a five-year plan of 33 billion pounds ($44.29billion) to upgrade the UK’s regulated electricity network.
Market participants await the preliminary UK GDP numbers for the third-quarter on Thursday. These figures will provide important insights into the economy of the country before the budget announcement by the government later this month.
Smithson Investment, among others, rose 6.7% following the announcement of plans to convert assets into an open ended fund. Avon Technologies, meanwhile, jumped to a new five-year-high after an optimistic outlook for fiscal year.
(source: Reuters)