FTSE 100 Hits Three-Month Low Amid Gold Miners' Downturn, Unilever Shines Bright

The FTSE 100 index saw its lowest point in nearly three months, dropping 0.7% due to declines in precious metals and energy stocks. Unilever was a positive outlier, surging 6.7% after surpassing profit estimates. Investor sentiment was generally dampened by underwhelming results from major tech companies including Alphabet and Tesla.

The FTSE 100 fell to its lowest in nearly three months on Thursday, pressured by gold miners, while Unilever surged after beating profit estimates for the first half.

The blue-chip FTSE 100 index was down 0.7% by 0719 GMT, and the mid-cap FTSE 250 was off 0.9%. Most major sub-sectors fell, as investors digested market movements and a slew of corporate updates.

Precious metal miners led declines on the FTSE 100 with a 4.7% drop. Gold miners Fresnillo and Endeavour Mining slipped over 3% each, as spot gold prices tumbled on profit-booking. Centamin slipped 8% to the bottom of the FTSE 250 after announcing its interim results and leaving its 2024 outlook unchanged.

Energy and industrial miners also fell 1.2% and 1.4% each, in tandem with oil and copper prices. Industrial support services stocks trended 2.3% lower, weighed down by a 6.5% decline in Rentokil after the pest-control firm reported its interim half-yearly results.

Personal care, drug and grocery sector was the only outlier, gaining 3.8% on strength from Unilever. The Dove soap maker climbed 6.7% after beating profit estimates for the first half of the year. Globally, investor sentiment was dampened after big tech companies Alphabet and Tesla failed to impress investors, weighing on the tech-heavy Nasdaq and the S&P 500.

Data-wise, the U.S. personal consumption expenditures (PCE) price index, due on Friday, will be on watch to gauge the Federal Reserve's stance on interest rate cuts. In other updates, British American Tobacco rose 1.4% after reporting a 1.3% rise in half-year profit, exceeding analyst expectations.

Centrica slipped to the bottom of the FTSE 100 with a 7.8% decline after the energy company reported a fall in first-half adjusted operating profit. BT shed 3.5% after the mobile and broadband provider delivered its trading statement for the first quarter.

(With inputs from agencies.)