FTSE 100 falls despite jump in healthcare stocks
The leading London index was down 32.2 points, 0.43%, to 7,489.19.
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Your support makes all the difference.The London Stock Exchange sank lower on Wednesday as energy and mining stocks dragged on the leading index.
It comes amid continuing bleak sentiment from economic powerhouse China, which reported worse-than-expected trading figures for November.
This is despite the fact that hopes were raised earlier in the morning on news that the Chinese government would be moderating its Covid restrictions after two years of “perpetual restrictions and lockdowns”, analysts said.
Nevertheless, a strong performance for healthcare stocks helped narrow the losses for the FTSE 100.
GSK saw its share price shoot up by more than 8% after a US judge dismissed a well-documented lawsuit claiming that its heartburn drug Zantac caused a risk of cancer.
The pharmaceutical giant has continuously given assurances that there is no cancer risk in using the drug, which was recalled in 2019 after regulators raised concerns.
European markets have remained on the back foot today after the latest China trade numbers for November saw both imports and exports fall off a cliff
Healthcare giants Haleon, Dechra Pharmaceuticals and AstraZeneca were also floating towards the top of the blue-chip index.
But it was not enough to pull the FTSE 100 out of the red and it closed down 32.2 points, 0.43%, to 7,489.19.
Michael Hewson, chief market analyst at CMC Markets UK, said: “European markets have remained on the back foot today after the latest China trade numbers for November saw both imports and exports fall off a cliff.
“The surprise wasn’t in the fact that the numbers were weak, it’s how weak they were, with exports plunging 8.7%.
“Some of the reasons have been well documented, the unrest at the Foxconn plant on Zhengzhou being one such example.
“Imports also plunged by more than expected at 10.6%, the worst month since May 2020, as Chinese domestic demand continued to struggle in the face of over two years of perpetual restrictions and lockdowns.”
It was a similar story for European stocks elsewhere, which had also fallen at close. The German Dax was down 0.57% and the French Cac had dipped 0.41%.
US stocks were on the backfoot when European markets closed, with the S&P 500 down by 0.21% and Dow Jones down by about 0.05%.
In better news for the UK, the pound was up 0.5% to 1.2193 against the US dollar, and up 0.2% to 1.1607 against the euro.
In company news, hospitality firm Mitchells & Butlers said it had swung back to profit as sales recovered following the easing of pandemic restrictions.
The All Bar One and Toby Carvery owner said that a return to office working had boosted city centre locations, but it was being hit by higher energy costs and price inflation.
Investors were in a good mood about the firm’s prospects and its shares were up by 6.48% at close.
It was a similar story for fashion retailer Quiz which also reported a return to profit as shoppers enjoyed the return of big parties and events.
The company said that sales had picked up in recent weeks and during the Black Friday sales period, as it continued to cut costs where possible across the business. Shares in Quiz were up by 2.22%.
On the other hand, Moonpig saw its share price tumble after saying it had been impacted by Royal Mail postal strikes and cost pressure on consumers.
The greeting card and gifts business said it had increased its cheaper range of gifts after consumers were pricing down over budget concerns.
Its share price had fallen 8.93% at close.
The biggest risers on the FTSE 100 were GSK, up 104.6p to 1,492.4p, Ocado Group, up 23.6p to 685.8p, Haleon, up 10.5p to 305.7p, DS Smith, up 8.1p to 317p, and Dechra Pharmaceuticals, up 56p to 2,736p.
The biggest fallers on the FTSE 100 were Ashtead Group, down 179p to 4,889p, Rolls-Royce Holdings, down 2.96p to 90.53p, Harbour Energy, down 9p to 300.3p, Glencore, down 15.8p to 540.3p, and BT Group, down 3.4p to 116.9p.