Market Analysis
On Wednesday, London's FTSE 100 fell to its lowest level in over three weeks as investors assessed the latest earnings reports from U.S. tech giants Tesla and Alphabet. In contrast, Aston Martin's shares surged following its half-year earnings update.
The FTSE 100 dropped 0.5%, while the mid-cap FTSE 250 declined by 0.1% by 0720 GMT, marking a second consecutive day of losses.
Disappointing quarterly results from major U.S. tech firms Alphabet and Tesla dampened investor sentiment and reduced risk appetite.
In London, personal goods stocks fell by 1.3%. Burberry saw a 2.1% drop after LVMH, the world's largest luxury group, reported slower sales growth in the second quarter.
The broader market also experienced declines, with financial and energy stocks trending lower. However, precious metal miners saw a 2% increase, leading the gains, as gold prices stabilized. This sector was poised to end a five-session losing streak, the longest since February.
Automobile and parts stocks rose by 2.1%, with Aston Martin's shares climbing 9.3% following a positive half-yearly earnings report, marking its best performance since September 2023.
easyJet's shares climbed 6.9% to lead the FTSE 100 after reporting a 16% increase in third-quarter pretax profit. Travel and leisure stocks gained 0.7%.
Ascential surged 25.8% to the top of the FTSE 250 after Informa announced it would acquire the Cannes Lions Festival owner for £1.2 billion ($1.6 billion).
Investors are also awaiting the domestic purchasing managers index report later today for insights into the British economy's current state. Additionally, U.S. inflation data, scheduled for release on Friday, will be closely monitored to anticipate the Federal Reserve's approach to interest rate cuts as its next policy decision approaches.
Paraphrasing text from "Reuters" all rights reserved by the original author.