FTSE 100 Slides On Worries Over Fiscal Plan
(RTTNews) - U.K. stocks slipped into the red on Thursday, with higher bond yields and Shell's profit warning weighing on sentiment.
U.K. construction companies experienced a modest increase in business activity during September, but the return to growth was fueled by delayed projects and easing supply shortages rather than a flurry of new orders, a survey showed earlier today.
Fitch Ratings has cut the U.K.'s credit outlook from stable to negative, saying the large and unfunded fiscal package announced as part of the new government's growth plan could lead to a significant increase in fiscal deficits over the medium term.
The benchmark FTSE 100 was down 16 points, or 0.2 percent, at 7,036 after losing half a percent on Wednesday.
Oil major Shell slumped 4.1 percent after a warning that its natural gas trading and refining divisions are under stress.
Ferrexpo, an exporter of high-grade iron ore pellets to the global steel industry, fell about 1 percent after reporting lower production in the third quarter.
Halma gained nearly 1 percent after announcing it has bought Weetech Holding GmbH for €57.5 million in cash.
Imperial Brands jumped 4 percent. The tobacco firm announced a 1 billion pounds ($1.13 billion) share buyback program and said FY22 trading has been in line with expectations.
Johnson Matthey, a sustainable technologies provider, rose over 1 percent on saying it has started fuel cell recycling at Zhangjiagang, in Jiangsu province of China.
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