FTSE 100 Dips Amid Wage Data and BoE Rate Speculations

The UK FTSE 100 index hit a near-month low due to strong wage data causing market jitters about future Bank of England interest rate decisions. Bunzl was the biggest loser due to unexpected deflation impacts, while Goodwin surged following strong profits. Investors anticipate BoE and Federal Reserve announcements.

The UK's FTSE 100 index slumped to a near one-month low on Tuesday, following robust wage data that cast uncertainty over the Bank of England's upcoming interest rate decisions. At 0950 GMT, the FTSE 100 had fallen by 0.6%.

Supplies distributor Bunzl suffered the most significant loss, dropping 4.4% after revealing that unanticipated deflation, particularly within its Continental Europe division, would marginally impact its annual profit. This downturn influenced the general industrial sub-index, which fell by 2%.

Precious metals, energy, and beverages sectors were among the top losers, while personal goods saw gains. In contrast, Goodwin surged 11% after reporting a strong pre-tax profit for the first half. With the Bank of England's policy decision looming, stronger-than-expected British pay data has led investors to temper expectations for rate cuts next year, increasing domestic government bond yields.

(With inputs from agencies.)