🍎 🍕 Less apples, more pizza 🤔 Have you seen Buffett’s portfolio recently?Explore for Free

UK mid-caps hit near 1-year low, oil majors drag FTSE 100 down

Published 04/10/2023, 08:24
Updated 04/10/2023, 17:30
© Reuters. FILE PHOTO: Signage is seen outside the entrance of the London Stock Exchange in London, Britain. Aug 23, 2018. REUTERS/Peter Nicholls/File Photo
UK100
-
TSCO
-
GC
-
HG
-

By Khushi Singh and Bansari Mayur Kamdar

(Reuters) -Britain's main stock indexes fell on Wednesday with mid-cap stocks nearing one-year lows as Spirent Communications (LON:SPT) sank after a profit warning, while weak energy and mining shares dragged down the commodity-heavy FTSE 100 for the third straight day.

The benchmark FTSE 100 index shed 0.8% and the domestically-focused FTSE 250 index closed 1.1% lower.

The energy sector fell 2.5%, tracking weak crude prices as demand fears stemming from macroeconomic headwinds offset pledges by Saudi Arabia and Russia to continue crude output cuts to the end of 2023.

Concerns about global growth also weighed on UK equities after bond yields rallied on bets that interest rates will have to stay high to dampen inflation.

Heavyweight industrial metal miners lost 1.8% as copper prices fell to their lowest in more than four months.

Tesco (LON:TSCO) gained 4.3% after the country's biggest retailer raised its annual profit forecast and signalled that food inflation would continue to decline.

"Tesco's progress has been remarkable, and largely possible because of its enormous scale," said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown (LON:HRGV).

"The real test will be Christmas, where consumers will want to put on as much of a feast as possible, but where wallets may not allow it. We could be faced with a race to the bottom on festive pricing, which could spell trouble for margins."

© Reuters. FILE PHOTO: Signage is seen outside the entrance of the London Stock Exchange in London, Britain. Aug 23, 2018. REUTERS/Peter Nicholls/File Photo

Shares of Spirent Communications fell 31.3% to lead declines on the midcap index after the telecoms testing services provider warned of lower annual profit.

Fashion retailer Superdry jumped 17.8% on news that it would sell its intellectual property assets in South Asia to Reliance Retail.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.