UK markets mixed as tobacco settlement hits FTSE 100
FTSE 100 dips 03% while FTSE 250 gains 02%. British American Tobacco settles Canadian lawsuit impacting index. Retail sales rise unexpectedly‚ metal miners see gains amid Chinese stimulus. Markets anticipate potential rate cut
The UK stock market showed mixed results on 10/18/24 with the FTSE 100 dropping 03% and the FTSE 250 rising 02%. This movement came after the FTSE 100 had reached its highest point since late May the previous day
British American Tobacco experienced a 32% decline following a $236 billion settlement (along with Philip Morris and Japan Tobacco) to resolve a long-standing tobacco lawsuit in Canada. This settlement had a significant impact on the blue-chip index
Despite the overall dip‚ some sectors saw gains. Precious metal miners increased by 17%‚ matching golds record-high prices. Industrial metal miners also rose 13%‚ boosted by Chinas new stimulus measures which pushed up copper prices
Unexpectedly British retail sales grew 03% in September‚ contradicting predictions of consumer caution due to potential tax increases before the governments upcoming budget
The markets performance this week was largely driven by Wednesdays inflation data‚ which showed a decrease to 17% – below the Bank of Englands 2% target. This strengthened expectations for a rate cut on 11/7/24‚ with traders estimating an 87% chance of a 25 basis point reduction
In company news Future PLC saw a nearly 20% drop after announcing its CEO would step down next year. Conversely‚ Dowlais surged 115% following an upgrade by BNP Paribas. Boohoo experienced an 84% decline as its CEO announced his departure and the company revealed plans for a strategic review that might lead to its break-up
Both the FTSE 100 and FTSE 250 ended their two-week losing streaks‚ with the FTSE 100 having its strongest weekly performance in over two months
