The FTSE 100 opened lower on Tuesday, October 14, primarily due to the weakness in the mining and energy sectors. London’s blue-chip index fell 23.90 points to 9,418.97, with a rise in UK unemployment, disappointing company results, and renewed US-China trade tensions prompting investors to turn cautious.
EasyJet led the gainers, surging 3.88% to £482, after Italian media reports hinted at potential bid interest from shipping major MSC. Although MSC denied any acquisition plans later in the day, speculation fueled strong investor demand.
Housebuilders also gained ground, with Persimmon rising 2.40% to £1,197 and Berkeley Group up 1.52% to £4,000, supported by improving mortgage conditions and a gradual recovery in housing demand.
Barratt Redrow added 1.39% to £387.60, while Centrica climbed 1.18% to £171.85, driven by defensive buying in a volatile market.
Close Brothers Group shares fell 3% to £433.6 after the lender announced it would set aside an additional £135 million to cover potential car finance compensation, bringing its total provision to £300 million.
The move follows the Financial Conduct Authority’s (FCA) proposal for a redress scheme covering customers mis-sold car loans between 2007 and 2024.
Energy major BP dropped £6 to £416 after warning of a weak oil trading result. The company maintained net debt at $26 billion (£19.6 billion), unchanged from Q2.
Meanwhile, miners extended their decline as Anglo American slipped 3% to £2,915 and Glencore eased £7.4 to £349.85, pressured by falling copper prices and uncertainty over China’s trade retaliation.
Grocery price inflation in the UK accelerated to 5.2% from 4.9% last month, according to Worldpanel by Numerator.
Despite higher prices, Tesco increased its market share to 28.3%, up 0.7 percentage points, as sales rose 6.9% year-on-year.
The unemployment rate rose to 4.8%, the highest since mid-2021, according to the Office for National Statistics (ONS). Payrolled employment fell 93,000 over the year to August, though it improved slightly month-on-month.
Average earnings, including bonuses, increased by 5%, led by 6% growth in the public sector.
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Wall Street futures pointed lower, with S&P 500 down 0.7% and Nasdaq 1% weaker, as traders awaited quarterly results from major US banks.
In Asia, markets fell sharply, with Japan’s Nikkei 225 down 3%, and Brent crude declining to $62.88 per barrel. Meanwhile, gold briefly hit $4,150 an ounce before settling below $4,100.
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