London close: Stocks give up gains to finish in the red

The FTSE 100 index fell 0.48% to 8,318.24 points, while the FTSE 250 lost 1.15% to 20,906.60 points.

In currency markets, sterling was last down 0.51% on the dollar to trade at $1.2986, as it weakened 0.08% against the euro, changing hands at €1.1999.

“US earnings season has entered one of those odd fallow periods that sees a still-young reporting period in a lull, bereft of major names,” said IG chief market analyst Chris Beauchamp.

“Combined with an equally-empty calendar, this means that markets have struggled to make much headway in today’s session.

“Without such news to distract them, thoughts have turned back to the Middle East situation, leading to investors switching to risk-off mode.”

Beauchamp noted that Monday’s gains took gold to its third-consecutive record high.

“Geopolitical worries and rising expectations of a Trump win in November continue to boost the commodity, which enjoyed one of its best years in recent memory.

“Oil prices are up too, but after brutal losses over the past two weeks, suggesting this is more like profit-taking than anything else.”

UK house price growth stagnates, consumer confidence improves

In economic news, UK housing market activity surged in October, with a 12% year-on-year increase in homes listed for sale, according to data from Rightmove.

That marked the highest number of available homes per estate agent since 2014.

Despite strong buyer interest - up 17% - the influx of supply limited house price growth.

The national average asking price rose by just 0.3% to £371,958, falling well short of the typical 1.3% increase for October.

Rightmove attributed the “muted” growth to increased market uncertainty ahead of the upcoming Budget.

“With the ball in the buyer’s court and the pick of a big crop to choose from, sellers need to be pricing competitively to find a buyer, particularly with affordability still very stretched,” said Tim Bannister, director of property science at Rightmove.

“We’re not seeing activity slow down, but some estate agents report that some movers are now waiting for Budget clarity and anticipated cheaper mortgage rates later this year.”

Elsewhere, UK consumer confidence improved in October, as the S&P Global UK consumer sentiment index rose to 47.3, up from 46.0 in September.

While still below the neutral 50 mark, the index showed its second-highest reading in over three years, driven by improved household optimism.

Rising wages and easing inflation supported this recovery, as more consumers reported a positive outlook on their finances.

“Consumer confidence is showing signs of reviving again after being hit by gloomy talk surrounding the Budget, which pulled sentiment off the recent post-election high seen in July,” said Maryam Baluch, economist at S&P Global Market Intelligence.

“Confidence is being supported first and foremost by the strong labour market, with the survey showing both job security and income from employment improving at some of the fastest rates seen since data were first collected in 2009.

“An easing of inflation worries, combined with expectations of a further lowering of interest rates, has also helped allay worries over the cost of living.”

On the continent, Germany saw a decline in wholesale prices for the first time in seven months.

The producer price index (PPI) fell 0.5% in September, according to the Federal Statistical Office, surpassing expectations of a 0.2% decline.

On an annual basis, the PPI dropped 1.4%, reflecting continued deflation in the energy sector.

Earlier in the global day, the People’s Bank of China cut its one-year and five-year loan prime rates by 25 basis points each, to 3.10% and 3.6%, respectively.

Gold miners and oil plays rise, miners give up gains

On London’s equity markets, gold miners were in the green as the price of the yellow stuff continued driving higher, amid investor uncertainty surrounding the US election and ongoing tensions in the Middle East.

Fresnillo led the charge, climbing 6.26%, while Endeavour Mining and Hochschild Mining rose 1.18% and 1.28%, respectively.

Oil majors BP and Shell also saw gains, up 1.31% and 0.75%, respectively, as rising oil prices supported the sector.

Passenger transport operator FirstGroup added 0.57% after announcing its acquisition of London-based Anderson Travel, a move that bolstered its portfolio in the private hire and tour service sector.

Future's shares rebounded 5.83%, recovering from a sharp decline last week after the unexpected resignation of chief executive Jon Steinberg.

Analysts at JPMorgan acknowledged the leadership change was a setback but maintained optimism about the company’s valuation.

PureTech Health also advanced 2.79%, buoyed by news that Seaport Therapeutics, a company it helped establish, completed an oversubscribed $225m series B funding round.

On the downside, Antofagasta, Glencore, and Rio Tinto all ended the day lower, despite early gains fueled by a rise in copper prices following China’s rate cuts.

By the close, Antofagasta was down 0.77%, Glencore slipped 0.13%, and Rio Tinto dipped 0.19%.

Intertek Group dropped 3.85% after RBC Capital Markets downgraded the stock from ‘outperform’ to ‘sector perform,’ while Ocado Group fell 3.33% amid reports that a former Microsoft executive, Adam Warby, was set to be named its next chairman, replacing Rick Haythornthwaite.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,318.24 -0.48%
FTSE 250 (MCX) 20,906.60 -1.15%
techMARK (TASX) 4,779.26 -0.66%

FTSE 100 - Risers

Fresnillo (FRES) 747.50p 6.33%
Smith (DS) (SMDS) 457.60p 2.37%
BP (BP.) 404.85p 1.31%
Reckitt Benckiser Group (RKT) 4,824.00p 1.01%
London Stock Exchange Group (LSEG) 10,615.00p 0.76%
Shell (SHEL) 2,551.00p 0.57%
Smurfit Westrock (DI) (SWR) 3,383.00p 0.51%
International Consolidated Airlines Group SA (CDI) (IAG) 214.10p 0.47%
Croda International (CRDA) 3,752.00p 0.27%
Halma (HLMA) 2,491.00p 0.24%

FTSE 100 - Fallers

Intertek Group (ITRK) 4,918.00p -3.85%
Entain (ENT) 707.20p -2.78%
easyJet (EZJ) 507.60p -2.50%
Prudential (PRU) 657.40p -2.38%
Pershing Square Holdings Ltd NPV (PSH) 3,616.00p -2.38%
Airtel Africa (AAF) 115.00p -2.04%
Weir Group (WEIR) 2,116.00p -2.04%
JD Sports Fashion (JD.) 133.95p -1.94%
Spirax Group (SPX) 6,680.00p -1.91%
DCC (CDI) (DCC) 5,145.00p -1.91%

FTSE 250 - Risers

Future (FUTR) 852.00p 7.24%
Bakkavor Group (BAKK) 164.50p 5.79%
PureTech Health (PRTC) 154.80p 2.79%
TBC Bank Group (TBCG) 2,840.00p 2.16%
Centamin (DI) (CEY) 171.50p 2.14%
HGCapital Trust (HGT) 515.00p 1.78%
Ithaca Energy (ITH) 103.80p 1.76%
Syncona Limited NPV (SYNC) 108.80p 1.68%
Hochschild Mining (HOC) 238.00p 1.28%
Apax Global Alpha Limited (APAX) 146.60p 1.10%

FTSE 250 - Fallers

W.A.G Payment Solutions (WPS) 78.80p -6.41%
JTC (JTC) 1,062.00p -5.00%
Savills (SVS) 1,122.00p -4.92%
Bloomsbury Publishing (BMY) 644.00p -3.88%
Watches of Switzerland Group (WOSG) 433.20p -3.82%
Me Group International (MEGP) 204.00p -3.55%
Vesuvius (VSVS) 377.00p -3.46%
Genuit Group (GEN) 493.50p -3.33%
Volution Group (FAN) 595.00p -3.25%
Clarkson (CKN) 3,480.00p -3.20%