On Monday, Britain's FTSE 100 experienced a two-month low due to a downturn in mining stocks, primarily driven by falling metal prices. Additionally, Vistry Group's lowered annual profit
forecast pulled down the FTSE 250.
Both the commodity-focused FTSE 100 and the mid-cap FTSE 250 registered a 0.5% decline, with the latter reaching its lowest point in a year. These indices are currently on their fourth consecutive session of losses.
Precious metal miners faced a 1.3% drop as the strengthening U.S. dollar and increasing Treasury yields put pressure on gold prices. On the other hand, industrial metal miners witnessed a 1.4% dip as copper prices slid due to mounting concerns about the Middle East conflict and rising inventories.
Danni Hewson, Head of Financial Analysis at AJ Bell, commented on the situation, stating, "People are considering a slowdown in economic output, and the potential for recession does weigh on commodities."
Homebuilder Vistry announced a tempered annual profit forecast and revealed plans to cut approximately 200 jobs as part of a restructuring effort, leading to a 5.3% decline in their shares, positioning them at the bottom of the FTSE 250.
The broader homebuilder index saw a 1.6% decrease, and real estate stocks fell by 1.8%, making them the leading decliners among sectors. Hewson emphasized the role of undermining consumer confidence in people postponing home purchases, especially first-time buyers.
Keller Group saw an impressive 13.2% surge, leading gains in the mid-cap index. The engineering contractor announced that it anticipates its annual operating profit to significantly surpass market expectations. As a result, the construction and materials index experienced a 0.8% increase, leading the gains.
Indivior shares increased by 3.5% after the drugmaker revealed its intention to pay $385 million to settle a lawsuit.
Furthermore, Moody's, the ratings agency, revised Britain's outlook from "negative" to "stable" on Friday. This change was attributed to the restoration of policy predictability, which had been marred by heightened volatility in the previous year. Photo by Kaihsu Tai, Wikimedia commons.