London’s FTSE 100 loses ground as UK service sector growth slows
The blue-chip index was down 23.6 points, or 0.28%, to close at 8,335.81.
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Your support makes all the difference.London’s FTSE 100 has been outperformed by European peers on Wednesday, after a new survey suggested the UK’s services firms were knocked by Budget worries last month.
The blue-chip index was down 23.6 points, or 0.28%, to close at 8,335.81.
S&P Global’s PMI survey, closely watched by economists, showed growth in the UK’s services sector slowed to its lowest rate for more than a year in November.
Businesses responding to the survey cited higher payroll costs and forthcoming national insurance hikes for slowing hiring last month, while input prices also rose as a result of higher staffing costs.
Meanwhile, Bank of England governor Andrew Bailey signalled that policymakers continue to see four interest rate cuts next year as the most likely scenario for the central bank.
He also said it was analysing the potential inflation impact of the autumn Budget, but that it was too early to say what that might be.
In Paris, the Cac 40 climbed 0.66% despite the country’s government appearing to be on the brink of collapse, with MPs debating on a no-confidence motion against the prime minister.
On Monday, Michel Barnier invoked a special constitutional tool to push through the controversial 2025 budget without a parliamentary vote.
In Frankfurt, the Dax continued its recent rally having surpassed the 2,000 mark for the first time in its history on Tuesday, and closed 1.08% higher.
Over in New York, the S&P 500 was up about 0.4%, and Dow Jones 0.6% higher, by the time European markets closed.
The pound was up about 0.3% against the US dollar, at 1.271, and up around 0.1% against the euro, at 1.207.
The price of Brent crude oil was down about 0.75% to 73 US dollars per barrel.
In company news, Rio Tinto outlined its long-term investment strategy at its investment day in London, with the company saying it is on track to produce significantly more copper next year.
At the same time, an activist investor called on the mining giant to scrap its primary London listing and focus on Australia.
Its share price held relatively steady on Wednesday, closing 0.3% lower.
Elsewhere, shares in XP Factory were given a lift after the escape room and experiential bar owner said it may grow to as many as 100 sites.
The company, which runs the Escape Hunt and Boom Battle Bar brands, said corporate bookings for Christmas are “significantly ahead” of last year amid improving demand.
It also said sales were up by a third over the first half of its financial year. Shares in XP Factory closed 3.7% higher.
The biggest risers on the FTSE 100 were Legal & General, up 13.4p to 236.3p, Vistry, up 30.5p to 658.5p, IAG, up 10.7p to 2,75.1p, Beazley, up 18p to 806p, and Persimmon, up 28p to 1,274.5p.
The biggest fallers on the FTSE 100 were AstraZeneca, down 310p to 10,480p, Anglo American, down 63.5p to 2,507.5p, National Grid, down 15p to 975p, Smiths Group, down 25p to 1,762p, and DS Smith, down 8p to 577p.