The FTSE 100 opened lower after macroeconomic concerns overshadowed gains in commodity-linked stocks. The index dropped by around 27 points to 9,870, with utilities, defence, and select consumer names dragging the benchmark lower. Meanwhile, mining stocks outperformed amid a fresh surge in gold prices.
Mining stocks were among the top performers, supported by bullion prices breaking above $4,400 per ounce for the first time.
Endeavour Mining rallied 2.25% to £3,998 as higher realized gold prices improved earnings expectations.
Fresnillo also advanced 1.70% to £3,224, extending its recent gains, while diversified miners Glencore rose 1.94% to £397.10 and Rio Tinto gained 1.32% to £5,915, benefiting from improved sentiment across metals markets.
The rally in precious metals was driven by expectations of further US interest rate cuts and strong safe-haven demand.
Utilities and defence stocks faced selling pressure. National Grid fell 1.01% to £1,130 and Severn Trent dipped 0.98% to £2,730, while BAE Systems fell 0.64% to £1,713, weighing on the index.
DCC also declined 2.77% to £4,838, while Reckitt Benckiser fell 1.09% to £6,014.
GSK confirmed it had reached a voluntary agreement with the US government to reduce prescription drug prices in exchange for relief from potential tariffs. The deal aligns GSK with the White House’s “most favoured nation” pricing framework.
As part of the agreement, GSK will offer discounts up to 66% on several medicines, including a large portion of its inhaled respiratory portfolio used to treat asthma and COPD.
Harbour Energy slipped after announcing a $3.2 billion acquisition of LLOG Exploration. This move expands its presence in the Gulf of America but adds balance-sheet risk in the near term.
Rank Group warned of a €7.1 million payment fraud at its Spanish operations, putting pressure on the stock.
Latest national accounts showed GDP grew just 0.1% in Q3, following a downward revision to Q2 growth.
The Office for National Statistics noted slowing services growth and a decline in production, particularly in car manufacturing.
Business surveys from the Confederation of British Industry also pointed to continued contraction in private sector activity and subdued hiring intentions.
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The S&P 500 and Nasdaq called 0.3% and 0.5% higher, but the Dow Jones was flat, after a mixed week, which ended marginally higher for the S&P and Nasdaq but lower for the Dow.
Asian markets are all in green this morning, led by Japan's Nikkei, which is up 1.8%, with India's Sensex and China's domestic Shanghai Composite both rising 0.6%.
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