FTSE slides in run-up to Budget as BP shares tumble
The FTSE 100 finished 66.01 points, or 0.8%, lower to end the day at 8,219.61.
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Your support makes all the difference.The FTSE 100 lost ground on Tuesday after it was dented by a weak performance by oil giant BP.
BP dropped after it reported that profits tumbled by nearly a third in the latest quarter to £1.75 billion, as a slump in refining margins weighed on income.
The energy giant finished 5% lower at 379.25p at the end of trading.
This helped to offset any positivity from strong performances by fellow London-listed firms HSBC and Pearson.
It also came amid pre-Budget caution from traders, with reports that the UK minimum wage could be hiked by 6% in a move which would add to business cost inflation.
The FTSE 100 finished 66.01 points, or 0.8%, lower to end the day at 8,219.61.
Across the Channel, Europe’s other main markets also finished lower, with the German Dax down despite a boost from Adidas after it received a settlement linked to its now-cancelled partnership with Kanye West.
The Cac 40 ended 0.61% lower for the day and the Dax index was down 0.25%.
In the US, the Dow Jones opened slightly lower amid a number of downbeat earnings updates, with McDonald’s among those to reveal a weaker quarterly performance.
Axel Rudolph, senior technical analyst at IG, said: “US stock indices were mixed on Tuesday but their European counterparts traded in negative territory as investors were reacting to recent data and earnings results.
“US job openings at their lowest level in over three years, house prices rising the least in 10 months and the goods trade deficit rising to over two-year highs dampened investors’ spirits, as did corporate earnings.”
Sterling gained ground amid speculation the Budget will include tax hikes and wage increases which could lead to higher price inflation from affected businesses.
The pound was up 0.16% at 1.299 US dollars and up 0.35% at 1.203 euro.
In company news, HSBC made strong gains after the banking giant revealed a nearly 10% jump in profits.
It came as bosses said it will cut senior banker roles over the coming months in a bid to reduce costs, as it moves “at pace” with a major restructuring announced last week.
Shares in HSBC were up 3.1% at 713.7p at the close.
Education publisher Pearson was another notable climber after sales were boosted by its continued push into AI (artificial intelligence).
The company saw shares lift by 4.3% to 1,118p after it reported that underlying revenues grew by 4% in the quarter to September.
C&C Group finished in the red after the Tennent’s lager firm said it had seen “some consumer caution” as shoppers tighten their purse strings ahead of the Budget.
The drinks giant saw shares close 4.2% lower at 154.8p after it highlighted weaker cider sales due to wet summer weather.
Elsewhere, the price of oil finished lower after it recoiled due to concerns over weak demand.
A barrel of Brent crude oil was down by 0.46% to 71.09 dollars (£54.71) as markets were closing in London.
The biggest risers on the FTSE 100 were Pearson, up 46.5p to 1,118p, Fresnillo, up 25.5p to 778.5p, HSBC, up 21.6p to 713.7p, Rentokil, up 6.3p to 386.9p, and Standard Chartered, up 10.6p to 876.4p.
The biggest fallers were Airtel Africa, down 7.9p to 101.7p, BP, down 19.85p to 379.25p, JD Sports, down 4.9p to 128.1p, Imperial Brands, down 73p to 2,243p, and Melrose Industries, down 14.3p to 472.3p.