Britain’s blue-chip index closed lower on Wednesday, while mid-caps clocked gains as investors assessed a mixed bag of corporate earnings, with the focus shifting to the state of the country’s economy.
The benchmark FTSE 100 was down 0.2%, while the domestically focused FTSE 250 was up 0.3%. Despite the day’s muted performance, Goldman Sachs raised its 12-month forecast for the FTSE 100 to 8,800 from 8,500, following a crucial U.S.-China trade agreement that has helped dial down global recession concerns.
Shares of Imperial Brands fell 7.3% to the bottom of the blue-chip index after the cigarette maker said CEO Stefan Bomhard will retire after five years in the role. Compass Group’s stock fell 2.5% after the catering firm released unchanged annual profit and revenue forecasts.
Shares of Spirax Group dropped nearly 6% after the manufacturing firm reported a slightly lower four-month profit margin.
Precious metal miners led the sectoral decline with a 2.5% drop, as gold prices fell more than 2% to a one-month low.
Keeping losses in check, Burberry’s stock jumped 17% to lead mid-cap performers after the British luxury brand announced plans to shed 1,700 jobs – about a fifth of its global workforce.
ASOS shares gained 3.2% after parcel locker company InPost partnered with the British online fashion retailer to introduce a next-day out-of-home delivery service.
On the economic front, Bank of England Monetary Policy Committee member Catherine Mann said she voted to keep borrowing costs on hold last week because Britain’s labour market had been more resilient than she expected.
Data published on Tuesday showed signs of a cooling UK labour market, but economists said the drop appeared modest.
The BoE cut its benchmark Bank Rate by a quarter of a percentage point on May 8, a decision backed by five of the MPC’s nine members.
Meanwhile, Britain’s finance ministry has hired Bank of America executive Jim O’Neil for a senior position as it tries to boost the country’s weak economic growth, the government said.
Britain’s blue-chip index closed lower on Wednesday, while mid-caps clocked gains as investors assessed a mixed bag of corporate earnings, with the focus shifting to the state of the country’s economy.
The benchmark FTSE 100 was down 0.2%, while the domestically focused FTSE 250 was up 0.3%. Despite the day’s muted performance, Goldman Sachs raised its 12-month forecast for the FTSE 100 to 8,800 from 8,500, following a crucial U.S.-China trade agreement that has helped dial down global recession concerns.
Shares of Imperial Brands fell 7.3% to the bottom of the blue-chip index after the cigarette maker said CEO Stefan Bomhard will retire after five years in the role. Compass Group’s stock fell 2.5% after the catering firm released unchanged annual profit and revenue forecasts.
Shares of Spirax Group dropped nearly 6% after the manufacturing firm reported a slightly lower four-month profit margin.
Precious metal miners led the sectoral decline with a 2.5% drop, as gold prices fell more than 2% to a one-month low.
Keeping losses in check, Burberry’s stock jumped 17% to lead mid-cap performers after the British luxury brand announced plans to shed 1,700 jobs – about a fifth of its global workforce.
ASOS shares gained 3.2% after parcel locker company InPost partnered with the British online fashion retailer to introduce a next-day out-of-home delivery service.
On the economic front, Bank of England Monetary Policy Committee member Catherine Mann said she voted to keep borrowing costs on hold last week because Britain’s labour market had been more resilient than she expected.
Data published on Tuesday showed signs of a cooling UK labour market, but economists said the drop appeared modest.
The BoE cut its benchmark Bank Rate by a quarter of a percentage point on May 8, a decision backed by five of the MPC’s nine members.
Meanwhile, Britain’s finance ministry has hired Bank of America executive Jim O’Neil for a senior position as it tries to boost the country’s weak economic growth, the government said.
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