UK Shares Decline For 3rd Day
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The FTSE 100 fell by 0.83% on Thursday, marking its third consecutive day of losses as investors reacted to a mix of corporate earnings and broader geopolitical developments.
The index closed at 8,682.84, down 73 points, underperforming European markets, which saw gains in sectors like autos following tariff-related news.
Melrose Industries led the declines, dropping more than 10% despite reporting 2024 profits at the higher end of expectations and forecasting robust future cash generation.
The sell-off was attributed to profit-taking by investors, who had already priced in the positive results.
Rentokil Initial fell 3.5% after issuing a weaker-than-expected outlook, raising concerns about its growth trajectory.
Similarly, Reckitt Benckiser reported improved fourth-quarter sales growth, but disappointing volumes weighed on investor sentiment.
On the positive side, Admiral Group surged nearly 7% after surpassing profit estimates, driven by strong performance in its insurance business.
Schroders also gained 6% following the announcement of cost-cutting measures aimed at improving efficiency and profitability.
In global developments, US President Donald Trump announced a one-month delay on auto tariffs for Canada and Mexico, providing temporary relief for automakers and easing concerns about supply chain disruptions.
This news boosted European auto stocks, contributing to the Stoxx 600’s gains.
Meanwhile, European leaders convened in Brussels to discuss defence strategies, continued support for Ukraine, and ways to maintain cooperation with the United States.
These discussions come amid growing geopolitical tensions and uncertainties in global trade.
The FTSE 100’s decline underscores the challenges facing UK markets as they navigate a complex landscape of corporate earnings, geopolitical developments, and monetary policy adjustments.
The coming weeks will be critical as markets assess the impact of the ECB’s rate cut and ongoing global trade dynamics.
Sources: Trading Economics, MarketScreener
