London Stock Market Wavers Amid Corporate Earnings and Interest Rate Jitters
London stocks fell on Tuesday as investors navigated mixed corporate earnings and anticipated interest rate decisions in the U.S. and UK. The FTSE 100 dipped 0.4%, while the beverages sector saw significant losses. Energy and precious metal shares gained, with BP and Fresnillo performing strongly.
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London stocks experienced a dip on Tuesday, influenced by mixed corporate earnings and investor caution regarding pending interest rate decisions in the U.S. and the UK. The FTSE 100 index fell by 0.4%, having previously hit its highest level since early June on Monday. The FTSE 250 index dropped 0.1% by 0710 GMT.
The beverages sector took a significant hit, plunging 6.8% to its lowest point since November 2020. Diageo led the decline with an 8.1% drop following a sharper-than-expected 4.8% fall in annual organic operating profit. In contrast, energy shares rose 0.6%, fueled by a 1.9% increase in BP's shares after the company reported stronger-than-expected second-quarter profits, raised dividends, and extended its share repurchase program. Precious metal miners edged up 0.9%, with Fresnillo seeing a 2.3% rise post its half-year results.
Investor focus remained on upcoming interest rate decisions, with the Federal Reserve likely to keep rates unchanged and the Bank of England's potential rate cut garnering 58% bets, despite persistent services inflation data. A pivotal U.S. jobs report and quarterly earnings from major tech companies, including Microsoft, are also on the horizon this week. Notably, Standard Chartered surged 5.1% in the FTSE 100 after unveiling a record $1.5 billion share buyback and an improved earnings outlook. St. James's Place topped the FTSE 250, soaring 18% as it announced plans to cut costs significantly amidst regulatory scrutiny.
(With inputs from agencies.)