Posted By Jessica Weisman-Pitts
Posted on December 2, 2024
By Nikhil Sharma
(Reuters) – The UK’s main stock indexes inched lower on Monday after clocking healthy gains in November, pressured by losses in homebuilders and precious metal miners.
The blue-chip FTSE 100 dipped 0.1% and the midcap FTSE 250 was down 0.2% at 0950 GMT, but both indexes were still performing better than other European peers affected by political turmoil in France.
Precious metal miners slipped 1.4% after gold prices dropped 1% on Monday, hurt by a firmer dollar and profit-booking. [GOL/]
Homebuilders Vistry Group and Persimmon were the top losers on the blue chip index, falling 3.5% each, after brokerage RBC cut the rating on their stocks to “underperform” from “perform”.
The broader homebuilders index slid 1.5%.
Meanwhile, British house prices rose in November at the fastest annual pace since November 2022, according to data from mortgage lender Nationwide, which reinforced resilience in the property sector despite higher borrowing costs.
In contrast, the personal goods sector was the top gainer, adding 1.4%.
Among other movers, Topps Tiles was down 0.3% after deeper losses earlier in the session. The company’s largest shareholder, MS Galleon, called for a management overhaul and strategy change due to its failure to adapt to the changing retail landscape, The Times reported on Sunday.
However, Topps Tiles said its strategy, which is mainly focused on the expansion of its online businesses, has full support from its board.
The S&P Global Purchasing Managers’ Index for the UK manufacturing fell to 48.0 in November, below an initial estimate of 48.6, indicating further contraction in British factory activity.
Investors now await comments from Bank of England (BoE) regulators Nathanael Benjamin and Lee Foulger at 1200 GMT. They are expected to speak with businesses on the central bank’s half-yearly financial stability report.
All eyes will be on BoE Governor Andrew Bailey on Wednesday for more clues on the central bank’s monetary policy path.
(Reporting by Nikhil Sharma in Bengaluru; Editing by Shinjini Ganguli)
