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FTSE 100 slips to one-month low as miners fall after China boost fades

Published 10/08/2024, 03:41 AM
Updated 10/08/2024, 01:17 PM
© Reuters. FILE PHOTO: Signage for the London Stock Exchange Group is seen outside of offices in Canary Wharf in London, Britain, August 3, 2023. REUTERS/Toby Melville/File Photo
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By Shubham Batra

(Reuters) -Britain's benchmark FTSE 100 recorded its worst day in two months on Tuesday led by losses in miners after China refrained from specifying measures to stimulate its economy, while homebuilder Vistry dropped after cutting its annual profit outlook. 

The blue-chip index FTSE 100 dropped 1.4%, hitting a one-month low, while the midcap index FTSE 250 fell 1.1%. 

Most sectors in the FTSE 350 were trading in the red, driven by industrial metal miners that slipped over 5% as prices of base metals fell after initial optimism over top consumer China's stimulus measures faded. [MET/L]

Chinese officials disappointed markets by providing few details on plans to bolster China's slowing economy.

Other sectors such as banks and energy also saw heavy selling pressure, with the latter down 2.7%, tracking lower oil prices. 

Shares of Vistry dropped 23% after the company cut its fiscal 2024 profit outlook by 80 million pounds ($104.7 million) after discovering one of its divisions had understated the cost of some of its developments.

The homebuilder dragged the household goods and home construction sector down by 4.2% to a three-month low.

Crest Nicholson, Bellway (LON:BWY), Persimmon (LON:PSN) and Taylor Wimpey (LON:TW) were down between 1.1%-6.5%.

Imperial Brands (OTC:IMBBY) was the top percentage gainer on the FTSE 100 with a 4.1% jump as it forecast growth of 20% to 30% in fiscal 2024 next generation products revenue and announced shareholder returns of 2.8 billion pounds.

© Reuters. FILE PHOTO: Signage for the London Stock Exchange Group is seen outside of offices in Canary Wharf in London, Britain, August 3, 2023. REUTERS/Toby Melville/File Photo

Meanwhile, a survey showed British shoppers increased their spending moderately in annual terms last month despite industry concerns about tax rises in Finance Minister Rachel Reeves' upcoming budget and a looming rise in household energy bills.

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