LONDON – London stocks experienced a downturn on Tuesday as investors weighed a mix of corporate earnings results and anticipated interest rate decisions from the US and UK.
The blue-chip FTSE 100 index fell by 0.4% after reaching its highest level since early June on Monday. The mid-cap FTSE 250 index also saw a slight decline of 0.1% by 0710 GMT.
The beverages sector faced the most significant losses, plummeting 6.8% to its lowest point since November 2020. Diageo led this decline, dropping 8.1% to the bottom of the FTSE 100 following a larger-than-expected 4.8% decrease in annual organic operating profit.
Conversely, energy shares gained 0.6%, supported by a 1.9% increase in BP’s stock. BP reported a second-quarter profit that exceeded expectations, raised its dividend, and extended its share repurchase program.
Precious metal miners saw a modest rise of 0.9%, with Fresnillo leading the charge with a 2.3% gain following its half-year results.
Investor sentiment was cautious ahead of the upcoming interest rate decisions in both the US and the UK. The Federal Reserve is anticipated to maintain current rates, while there is a 58% chance of a rate cut by the Bank of England, despite ongoing concerns about persistent services inflation.
Additional attention this week includes a key US jobs report and quarterly earnings reports from major technology firms, with Microsoft set to release its results after the market close on Tuesday.
In London, Standard Chartered’s stock rose 5.1% to top the FTSE 100 after the bank announced its largest-ever share buyback of $1.5 billion and revised its earnings forecast upwards for the year. St James’s Place saw an 18% increase, leading the FTSE 250 after the wealth manager revealed plans to cut significant costs in a bid to restore investor confidence following recent regulatory scrutiny.
