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After a much awaited news conference by China’s National Development and Reform Commission fell short of hopes for greater stimulus, U.K. markets dropped on Tuesday.Rising borrowing rates in the United Kingdom in recent days also presented difficulties for the government, which plans to present its budget at the end of the month. Reaching 4.2%, the yield on 10-year U.K. government gilts is the highest level since the July general election. Having risen 0.3 percent in the previous session, the benchmark FTSE 100 dropped by 1.3%. Tracking reduced copper and iron ore prices as initial hope over concrete details around China’s stimulus measures faded, miners suffered major losses, Glencore, Antofagasta, and Anglo America fell 4-6%.In single stock stories Vistry’s shares plummeted 30%, leading the FTSE 100 index in losses. The British home builder cut its fiscal 2024 profit forecast by 80 million pounds due to higher build costs in one of its divisions, now expecting adjusted PBT of around 350 million pounds. The revised cost assumptions would also reduce profit expectations for 2025 by about 30 million pounds and 2026 by about 5 million pounds. Prior to the latest decline, the stock had risen nearly 39% this year.On the positive side of the ledger shares in Imperial Brands, a cigarette manufacturer, have risen by 4.1%, making it the top gainer on the FTSE 100 index, which has declined by 0.8%. The company forecasts 20% to 30% growth in revenue from next-generation products (NGP) in fiscal 2024. It also announces shareholder returns of £2.8 billion for fiscal 2025, including a £1.25 billion share buyback, and raises the annual dividend by 4.5% to 153.43 pence per share for 2024. The stock has gained 18.9% year-to-date as of the last close.
Technical & Trade ViewFTSE Bias: Bullish Above Bearish below 8225
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