Investors Cautious as London Stocks Absorb Corporate Updates; Economic Data in Focus

 

UK stock indexes showed little movement on Thursday as investors processed a series of corporate updates, while caution surrounding upcoming U.S. and British economic data tempered market sentiment.

The FTSE 100 benchmark dipped 0.1%, while the mid-cap FTSE 250 remained unchanged as of 0720 GMT.

The pharmaceutical and biotechnology sector saw a significant impact, with drugmaker GSK plunging 6.5%. This drop followed the U.S. CDC's revised guidance on respiratory syncytial virus vaccines, affecting older adults and delaying recommendations for those under 60.

Investors are closely watching U.S. personal consumption expenditure (PCE) data scheduled for Friday, which could influence the Federal Reserve's decisions on interest rates this year. Additionally, UK gross domestic product (GDP) figures expected this week might bolster expectations for a Bank of England rate cut in August.

Market participants also adopted a cautious stance ahead of the UK's upcoming parliamentary elections on July 4.

In the commodities sector, precious and industrial metal miners saw modest declines of 1.1% and 0.8% respectively, as gold and copper prices stabilized near recent lows.

The automobile and parts segment retreated by 1.5% after data revealed an 11.9% year-over-year decline in Britain's car production for May, marking the third consecutive monthly decrease.

Burberry, a prominent accessories retailer, saw its shares slip 3.2% as the company traded ex-dividend, foregoing its latest dividend payouts.

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author.