Bunzl's Downturn Hits FTSE 100 Amid Global Trade Concerns

Britain's FTSE 100 index fell after Bunzl revised its forecast and paused its buyback program, marking its worst trading day. Domestic inflation eased but failed to boost sentiment. Global stocks declined due to U.S. chip sales restrictions to China. The precious metals sector gained as gold surpassed $3,300.

Britain's FTSE 100 index declined on Wednesday, weighed down by a sharp drop in Bunzl shares. The business supplies distributor revised its 2025 forecast downward, paused its share buyback program, and saw its shares plunge 23.1%, marking an historic low.

Despite a slowdown in domestic inflation, the potential ramifications of ongoing trade wars continue to stir investor anxiety. This disappointment preceded the Bank of England's upcoming interest rate decision, where a reduction is anticipated.

The global market faced further pressure from U.S. restrictions on chip sales to China. Amid this volatility, the precious metals sector emerged as a strong performer, buoyed by rising gold prices driven by safe-haven demand.

(With inputs from agencies.)