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The FTSE 100 opened lower on Thursday as disappointing updates from major UK-listed firms weighed on investor sentiment, while global uncertainties surrounding GDP growth and corporate cost-cutting kept markets cautious.
The FTSE 100 index fell 9.25 points to 9,415.50, extending its decline from Wednesday’s 28-point drop. Early trading was marked by weakness in Whitbread and AstraZeneca, though select industrial and chemical stocks helped limit losses.
Croda International surged 5.92% to £3,728.27, followed by Spirax Group, up 2.63% at £4,913.48.
Centrica and Pearson also posted gains of 1.94% and 1.70%, respectively, as investors rotated into defensives amid macroeconomic concerns.
One of the day’s biggest corporate stories came from Nestlé, the maker of KitKat and Nescafé, which announced plans to cut 16,000 jobs globally over the next two years. The Swiss food giant said the restructuring aims to boost efficiency and automate core operations.
CEO Philipp Navratil emphasized the need for transformation, stating that the company must “change faster” to remain a leader in a shifting global environment.
Whitbread plunged 8% or £267 to £2,957 after scaling back its profit forecast for its Premier Inn Germany operations.
Analysts at Hargreaves Lansdown said Whitbread’s near-term visibility remains limited due to economic uncertainty and weaker event-driven demand in Europe.
The company reported that UK accommodation sales remained flat in the first half, though third-quarter performance improved by 3% year-on-year.
AstraZeneca also traded lower, down £122 to £12,522, after Deutsche Bank downgraded the stock to ‘Sell’. The pharma major’s downgrade offset optimism from Croda’s upbeat third-quarter guidance reaffirmation.
Economists warned that the UK’s fragile recovery remains under threat. Following a 0.1% GDP growth in August, Deutsche Bank expects the third-quarter GDP to grow only 0.2%, roughly half the pace projected by the Bank of England.
Analysts cited budget uncertainty and fallout from the Jaguar Land Rover cyberattack as additional drags on industrial output.
Capital Economics echoed a similar view, noting that persistent inflation and weak consumer sentiment will likely cap growth for the remainder of 2025.
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Asian markets traded mixed, with the Nikkei 225 up 1.2% while Hong Kong’s Hang Seng dropped 0.8%. In commodities, gold hit a new record above $4,240 an ounce before settling near $4,200, while Brent crude rose 0.8% to $62.39 a barrel.
As the UK heads toward the November 26 Budget, analysts expect volatility to persist in equities as investors weigh fiscal tightening, sluggish growth, and global trade headwinds.
