London stocks dip after UK economy contracts
London’s top flight finished 11.43 points, or 0.14%, lower to end the day at 8,300.33.
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Your support makes all the difference.The FTSE 100 was on the back foot on Friday after sentiment was knocked by figures revealing that the UK economy declined in October.
The Office for National Statistics (ONS) reported that gross domestic product (GDP) fell by 0.1% for the month, marking the second consecutive monthly contraction.
The data showed a weak month for pubs and restaurants dragged on growth amid some uncertainty before the autumn Budget.
Falling metal prices also knocked commodity stocks during the session.
London’s top flight finished 11.43 points, or 0.14%, lower to end the day at 8,300.33.
Sterling was also down thanks to the drop in GDP, which came as the key services sector saw growth stall for the month.
The pound was down 0.43% at 1.262 US dollars but down 0.6% at 1.202 euros.Elsewhere in Europe, French stocks were lower at the close after centrist leader Francois Bayrou was chosen as the country’s latest prime minister by Emmanuel Macron, amid efforts to halt recent political instability.
The Cac 40 ended 0.15% lower for the day and the Dax index was down 0.1%.
Stateside, the markets opened stronger amid hopes of an interest rate cut by the Federal Reserve next week, while tech stocks benefited from a surge in Broadcom shares following an update.
However, Chris Beauchamp, chief market analyst at IG, said: “Earlier gains have drifted away as US Treasury yields strengthen.
“Yields rose to their highest levels in over two weeks as markets brace for the Federal Reserve’s final meeting of the year.”
In company news, Boohoo made gains after it offered its largest shareholder Frasers Group a seat on its board following a bitter war of words between the groups.
However, it came short of calls to appoint Frasers Group founder Mike Ashley to its board ahead of a shareholder vote next week.
Shares in Boohoo were up 10.9% at 38.52p at the close of play.
Winemaker Chapel Down was also firmly higher after it appointed James Pennefather as its next boss and hailed “strong” pre-Christmas sales.
It told shareholders that Mr Pennefather, who was most recently the boss of The Lakes Distillery, will take over as chief executive in February next year.
It added that “trading in the important final quarter of the year has been strong” and it is on track to meet board expectations for the year. Shares closed 5.7% higher at 37p.
Guinness and Baileys maker Diageo finished up 2.3% at 2,618.5p after it was upgraded by UBS analysts.
The price of oil continued its recent climb to rise higher again on Friday in the face of growing geopolitical risks and the potential for new US sanctions against Russia.
A barrel of Brent crude oil was up by 1.13% to 74.24 dollars (£58.81) as markets were closing in London.
The biggest risers on the FTSE 100 were Rentokil, up 14p to 412.9p, Beazley, up 24p to 839.5p, Diageo, up 60p to 2,618.5p, Hiscox, up 23p to 1,150p, and Marks & Spencer, up 7.5p to 397.7p.
The biggest fallers on the FTSE 100 were Endeavour Mining, down 46p to 1,505p, Spirax, down 185p to 7,195p, Anglo American, down 62p to 2,460.5p, Fresnillo, down 14p to 665.5p, and Rio Tinto, down 100p to 4,900p.