FTSE 100 Down for 3rd Session
The FTSE 100 traded lower on Wednesday, extending its decline for a third consecutive session as unexpectedly high inflation and rising government borrowing weighed on sentiment ahead of the UK budget. Annual consumer price inflation accelerated to 3.5% in September, exceeding forecasts of 3.4%, increasing pressure on the BoE to raise interest rates. Meanwhile, government borrowing reached £97.8 billion in the April—September period, £6 billion above the OBR’s March forecast. September borrowing alone totalled £24.5 billion, surpassing both projections and the year-earlier level. Banks, miners, defence and aerospace, and consumer stocks led the market lower. HSBC fell 1%, Lloyds Banking Group lost 1.2%, while Rio Tinto dropped 2.8%. Fresnillo declined more than 2% after maintaining its annual silver production outlook despite lower output year on year. Rolls-Royce and BAE Systems also fell. Utilities bucked the trend, with SSE rising 1.8% and National Grid gaining 1.6%.
The FTSE 100 traded lower on Wednesday, extending its decline for a third consecutive session as unexpectedly high inflation and rising government borrowing weighed on sentiment ahead of the UK budget. Annual consumer price inflation accelerated to 3.5% in September, exceeding forecasts of 3.4%, increasing pressure on the BoE to raise interest rates. Meanwhile, government borrowing reached £97.8 billion in the April—September period, £6 billion above the OBR’s March forecast. September borrowing alone totalled £24.5 billion, surpassing both projections and the year-earlier level.
Banks, miners, defence and aerospace, and consumer stocks led the market lower. HSBC fell 1%, Lloyds Banking Group lost 1.2%, while Rio Tinto dropped 2.8%. Fresnillo declined more than 2% after maintaining its annual silver production outlook despite lower output year on year. Rolls-Royce and BAE Systems also fell.
Utilities bucked the trend, with SSE rising 1.8% and National Grid gaining 1.6%.