London close: Stocks finish lower ahead of Budget, US election

London markets closed in negative territory on Wednesday as investor caution prevailed ahead of the upcoming Budget and amid ongoing uncertainty surrounding the US presidential election.

The FTSE 100 index dipped 0.58% to finish at 8,258.64 points, while the FTSE 250 fell by 0.57% to 20,829.93 points.

In currency markets, sterling was last down 0.35% on the dollar to trade at $1.2938, while it lost 0.17% against the euro, changing hands at €1.2003.

The absence of major economic data releases on the day left investors focused on looming macroeconomic concerns.

“The lack of enthusiasm among investors to chase this market is palpable,” said IG chief market analyst Chris Beauchamp.

“At least we have Tesla earnings tonight to liven things up, and which will help inject a bit of excitement into the market.

“Even Lloyds has been unable to hold on to its gains after today’s results, with the shares drifting into the red as the day has gone on.”

Beauchamp added that even after Tesla’s earnings are released tonight, markets could struggle to make any meaningful progress.

“Even without thinking about the US election, which is impossible to ignore, the upcoming payrolls report and Fed decision in coming weeks provide two additional hurdles to navigate.

“While volatility hasn’t exactly spiked, it still feels like there is a nasty surprise lurking just around the corner.”

Heathrow raises full-year passenger forecasts after bumper summer

There was a dearth of major economic data releases globally on Wednesday, but on home shores, Heathrow Airport looked to have more-than-recovered from the Covid-19 pandemic after it reported a 12.6% rise in pre-tax profit to £696m for the first nine months of the year, driven by a surge in passenger numbers during a busy summer of sport and music events.

The airport, owned by the Ferrovial-led FGP Topco consortium, handled 63.1 million passengers, marking a 6.2% year-on-year increase, with over 30 million travellers passing through during the peak summer months.

As a result, Heathrow raised its full-year forecast to 83.8 million passengers.

Despite a 3.2% dip in revenue to £2.65bn and a slight 0.7% decrease in adjusted EBITDA to £1.54bn, the airport saw a notable turnaround in adjusted pre-tax profit, reaching £350m, compared to a £19m loss in the same period last year.

WPP and Reckitt rise, Lloyds gives up its gains

On London’s equity markets, shares in WPP surged 6.1% after the advertising giant reported a return to growth in the third quarter and reaffirmed its full-year outlook.

The company posted a 0.5% rise in like-for-like revenue excluding pass-through costs, while reported revenue increased by 1.4% and like-for-like revenue grew by 4.1%.

Reckitt Benckiser also performed strongly, climbing 3.99% after the consumer goods company’s third-quarter net sales growth exceeded expectations.

Housebuilder Barratt Redrow saw a 2.51% rise as it reported more stable market conditions and highlighted its rapid progress in integrating the two businesses, forecasting cost synergies of at least £90 million.

In the mining sector, Hochschild Mining gained 1.29% after maintaining its full-year production guidance and reporting its strongest third-quarter performance in nearly five years.

Brick manufacturer Ibstock advanced 1.13% following an upgrade from Jefferies to ‘buy,’ citing strong demand in the UK brick market.

On the downside, Lloyds Banking Group dipped 0.61% to reverse its earlier gains.

Despite beating expectations with a pre-tax profit of £1.82bn for the third quarter, the bank saw a slight 2% decline in statutory profits compared to last year.

Elsewhere, Volution Group fell 3.71% after Davy downgraded the stock to ‘neutral,’ citing concerns that the shares had risen too quickly following a 75% increase over the past year.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,258.64 -0.58%
FTSE 250 (MCX) 20,829.93 -0.57%
techMARK (TASX) 4,747.40 -0.32%

FTSE 100 - Risers

WPP (WPP) 820.80p 6.10%
Smurfit Westrock (DI) (SWR) 3,574.00p 4.59%
Reckitt Benckiser Group (RKT) 4,953.00p 3.99%
Smith (DS) (SMDS) 477.40p 3.11%
Barratt Redrow (BTRW) 485.30p 2.51%
Rentokil Initial (RTO) 378.40p 1.72%
Ashtead Group (AHT) 5,900.00p 1.51%
Pearson (PSON) 1,045.00p 1.51%
Compass Group (CPG) 2,506.00p 0.85%
SSE (SSE) 1,892.50p 0.69%

FTSE 100 - Fallers

3i Group (III) 3,300.00p -2.45%
Anglo American (AAL) 2,323.50p -2.35%
Smiths Group (SMIN) 1,577.00p -2.23%
Unilever (ULVR) 4,653.00p -2.23%
Phoenix Group Holdings (PHNX) 512.50p -1.91%
IMI (IMI) 1,750.00p -1.91%
Glencore (GLEN) 400.30p -1.86%
Rightmove (RMV) 620.60p -1.80%
Centrica (CNA) 123.30p -1.79%
Frasers Group (FRAS) 795.50p -1.79%

FTSE 250 - Risers

PRS Reit (The) (PRSR) 107.80p 3.85%
Wizz Air Holdings (WIZZ) 1,300.00p 3.59%
Aston Martin Lagonda Global Holdings (AML) 107.30p 3.07%
SSP Group (SSPG) 171.50p 2.45%
Harbour Energy (HBR) 268.40p 2.05%
Morgan Sindall Group (MGNS) 3,955.00p 1.41%
Baltic Classifieds Group (BCG) 325.50p 1.40%
Hochschild Mining (HOC) 236.00p 1.29%
Burberry Group (BRBY) 712.00p 1.25%
Patria Private Equity Trust (PPET) 533.00p 1.14%

FTSE 250 - Fallers

Ninety One (N91) 168.90p -4.52%
RHI Magnesita N.V. (DI) (RHIM) 3,225.00p -4.44%
Volution Group (FAN) 571.00p -3.71%
Currys (CURY) 85.50p -3.06%
Close Brothers Group (CBG) 368.60p -3.00%
Auction Technology Group (ATG) 440.50p -2.97%
Foresight Group Holdings Limited NPV (FSG) 472.00p -2.88%
Crest Nicholson Holdings (CRST) 182.40p -2.88%
Jupiter Fund Management (JUP) 83.60p -2.79%
Man Group (EMG) 203.80p -2.67%