(Reuters) – London’s benchmark index extended declines for the fourth straight session on Wednesday, with the upcoming UK budget and the U.S. election prompting investors to shy away from risk assets, while industrial metal miners dragged the index lower.
The blue-chip FTSE 100 declined by 0.2% to 8,264.5 points by 1000 GMT, while the domestically focussed FTSE 250 index fell by 0.4%. Both touched one-week lows in the previous session.
Industrial metal miners lost 1.2% as copper prices slipped, pressured by a stronger U.S. dollar. [MET/L].
Precious metal miners rose 0.8% as demand for safe-haven assets jumped, and gold hit a record-high. [GOL/]
The prospect of another Trump presidency has been in focus for investors, pushing them to the sidelines until further clarity. Trump’s policies include tariffs and restrictions on undocumented immigration, among other measures, that are expected to push up inflation. [MKTS/GLOB]
Meanwhile, the Bank of England meets in two weeks to take a call on interest rates, with the markets fully pricing a rate cut in November, and seeing a likely further rate cut in December.
Annual consumer price inflation eased to 1.7% in September, the lowest reading since April 2021, data showed last week.
Traders awaited remarks by BoE Governor Andrew Bailey due later in the day that could affect expectations of the central bank’s rate cut path.
Investor focus is also on flash PMI figures due on Thursday and the British budget on Oct. 30.
Among individual stocks, Reckitt gained 2.7% after the Nurofen painkillers and Strepsils lozenges maker reported a smaller-than-expected fall in third-quarter underlying sales.
WPP jumped 4.6% after the British ad group reported a better-than-expected rise in third-quarter organic revenue.
(Reporting by Pranav Kashyap in Bengaluru; Editing by Shailesh Kuber)
By Pranav Kashyap