Bleak company reports drag London stocks lower; LSEG weighs
Reuters
Published May 17, 2023 08:41
Updated May 17, 2023 21:06
By Johann M Cherian and Shashwat Chauhan
(Reuters) - London stocks closed lower on Wednesday, with the London Stock Exchange Group (LON:LSEG) falling after an investor consortium sold shares in the market operator and British Land Company and JD Sports Fashion providing downbeat corporate updates.
The blue-chip FTSE 100 fell 0.4%, down for the second consecutive day.
The London Stock Exchange Group slipped 2.7% after U.S. buyout firm Blackstone (NYSE:BX) and Thomson Reuters Corp sold shares worth around 2.7 billion pounds ($3.41 billion) of the financial market operator, according to Barclays (LON:BARC) Bank.
JD Sports Fashion fell 4.3% after the sportswear retailer reported lower annual profit.
British Land Co skid 5.7% after the real-estate firm reported a drop in its property valuations as high interest rates weighed on the sector.
The FTSE 250 midcap index slipped 0.3% as Watches of Switzerland Group slumped 5.8% on a marginal sales decline in the first quarter.
A day after data showed UK unemployment rising, Bank of England Governor Andrew Bailey said there were some signs of a cooling of inflation pressure in Britain's labour market.
"Following yesterday's numbers, sentiment has risen that the BoE is closer to ending its rate hiking cycle, which is a boost to risk appetite and a further plus for riskier stocks as opposed to the traditional defensive ones," said Stuart Cole, chief macro economist at Equiti Capital.
Defensive stocks such as healthcare major AstraZeneca (NASDAQ:AZN) and consumer staples major Diageo (LON:DGE) fell 1.2% and 1.5%, respectively, weighing on the FTSE 100.
UK-listed equities have been range-bound since late-April as multiple factors rattled investors, including domestic inflation, a weak outlook for commodity-linked stocks and the risk of a U.S. debt default.
Bucking the sombre mood, Melrose Industries (LON:MRON) gained 4.4% after the jet parts supplier lifted its 2025 adjusted operating margin forecast.
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Written By: Reuters
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