On Wednesday, London’s FTSE 100 experienced a decline, primarily driven by Unilever and GSK following their quarterly results. This downturn occurred in a market characterised by caution as investors awaited finance minister John Healey’s inaugural budget and the impending interest rate decision from the US Federal Reserve.
The blue-chip FTSE 100 index fell 0.3% to 10,652.43 points by 0954, while the midcap FTSE 250 inched up 0.1%.
- Healey planned to eliminate fixed gas standing charges from household energy bills starting in 2027, as reported.
- He is anticipated to unveil a prudent budget, aiming to mitigate further pressure on the bond market, with banks and gambling firms potentially facing increased taxation.
- “It’s really a waiting game… We’re not expecting massive moves today and it’s unlikely we’ll see too many surprises,” said Nick Saunders.
- Standard Chartered opens new tab gained 2.8% after the lender said it expects full-year operating income growth to exceed 7% – above its prior 5%-7% guidance.
- Unilever experienced a decline of 2.2% following the announcement of weaker performance in its foods division, which contributed to a nearly 1.2% drop in the personal care, drug, and grocery sector.
- GSK opens new tab bottomed the FTSE 100 with a 5.7% slump as its pipeline-build push and growth plans via a £1.9 billion ($2.52 billion) cost-savings drive failed to convince investors.
- The pharmaceutical and biotechnology sector declined by 1.7%.
- Brent crude futures increased by 1.2% to $115.24 a barrel following an attack on a Saudi Arabian refinery, which has reignited worries regarding possible supply disruptions.
- The broader energy sector was among the few gainers, rising 0.2%.
- “Financials, house builders, utilities and defence stocks are likely to be the most sensitive,” Saunders said
- Markets will closely monitor the Fed’s monetary policy meeting, where it is broadly anticipated to maintain interest rates at their current levels.
