FTSE 100 Surges as Energy Gains, Vistry Tumbles Amid Profit Warning

The UK's FTSE 100 rose in thin trading ahead of the Christmas break, with gains in the energy and automobiles sectors. However, Vistry shares plummeted following a fiscal warning, affecting the home construction index. The economy faces challenges amid a Labour-led government and potential central bank rate cuts.

The UK's FTSE 100 index showed an uptick on Tuesday during low-volume trading preceding the Christmas holidays. This rise was propelled by robust performance in the energy and automobile sectors, which saw rises of 0.8% and 1.1% respectively. In contrast, homebuilder Vistry faced a significant setback, plunging 18.2% after announcing its third fiscal 2024 profit warning.

Vistry's downturn cast a shadow over the household goods and home construction index, which fell by 2.3%, marking it as the sole declining sector. The UK stock market is expected to close early at 12:30 GMT due to the half-day Christmas holiday.

Furthermore, attention is now pivoting towards global events slated for 2025, such as Donald Trump's anticipated presidential term, which has caused central banks worldwide to reconsider their monetary policies. Meanwhile, the Bank of England has held its interest rates steady, hinting at a continued gradual rate-cutting strategy despite the economic deceleration.

(With inputs from agencies.)