London stocks fall as mining stocks drag, economic data disappoints
Meanwhile, data showed British economic output failed to grow in the July-to-September period but at least managed to avoid the start of a recession
LONDON: The UK's FTSE 100 slipped on Friday, as prices of most metals slipped, sparking a sell-off in metal mining shares, while data showed the UK economy failed to grow in the third quarter.
The exporter-focused FTSE 100 was down 0.6% at 0814 GMT and the mid-cap FTSE 250 dropped 2.2%. Precious metal miners lost 1.2%, while the industrial metal miners index dropped 0.9%. Prices of most nonferrous metals fell after hawkish comments by U.S. Federal Reserve officials signalled further rate hikes could be required to fight inflation.
Meanwhile, data showed British economic output failed to grow in the July-to-September period but at least managed to avoid the start of a recession. Shares of Diageo moved 7.9% lower after the Johnnie Walker whisky maker said it expected organic operating profit growth to decline in the first half of fiscal 2024, due to weakening sales in Latin America and the Caribbean and higher trade investments.
British homebuilder Redrow expects annual profit and revenue to be at the lower end of its forecast range, hurt by a subdued autumn housing market. The stock was down 4.8% while the homebuilder index dropped 1.6%. Real estate investment trusts fell 4.4%, leading sectoral declines.