Britain’s main stock index closed lower on Wednesday, led by a drop in personal property and housebuilder stocks, as investors assessed crucial economic data from the UK and US ahead of central bank interest rate decisions in coming weeks.
The FTSE 100 index, which is traded on the world’s major stock exchanges, fell 0.4% to its lowest level in three weeks, while the FTSE 250, which is traded on domestic markets, closed unchanged, after its biggest drop in almost a month.
Rate-sensitive housebuilders fell 2.9 percent to a near one-month low after Barratt Developments said it did not expect profit growth until fiscal 2026. The housebuilder fell 4.6 percent.
The personal goods index lost 4 percent, hitting its lowest levels since February 2010, as sector heavyweights Burberry and Watches of Switzerland Group fell 4.5 percent and 3.4 percent respectively.
Automobiles and auto parts were the top sectoral gainers, rising 2.2 percent, while aerospace and defense stocks added 0.9 percent as Rolls-Royce continued to post gains for a second session, adding 1.8 percent.
In data, a survey showed Britain’s services activity grew at the fastest pace since April last month and price pressures eased, pointing to a milder inflation outlook and a stabilization of the economy after July’s election.
U.S. job openings fell to a three-and-a-half-year low in July, suggesting the labor market was losing steam, but probably not enough for the Federal Reserve to consider a big interest rate cut this month.
Among individual stocks, Direct Line Insurance Group fell 2.4 percent after missing half-year operating profit.
Airtel Africa fell 5.2 percent to the bottom of the FTSE 100 after JP Morgan downgraded the stock to Neutral from Overweight.
Insurer and asset manager M&G fell 1.5 percent after lower operating profit in the first half.
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