Sept 10 (Askume) – London’s FTSE 100 index weakened on Tuesday amid a sell-off in health care and energy stocks, while slowing wage growth in Britain raised the prospect of further interest rate cuts by the Bank of England.
The blue-chip FTSE 100 index (.FTSE) fell 0.8% after recording its best day in more than a month on Monday. The mid-cap FTSE 250 (.FTMC) closed flat.
The pharmaceuticals and biotech sector (.FTNMX201030) fell 1.5% to its lowest in more than a month, with AstraZeneca (AZN.L) the biggest loser, dropping 2.4%.
A drugmaker detailed results Monday from a large lung cancer trial showing its experimental precision medicineOverall patient outcomes were not significantly improved.
Heavyweight energy stocks (.FTNMX601010) fell 1.7% as Brent crude futures dropped below $70 a barrel for the first time since December 2021 after OPEC+ cut its demand forecast for this year and 2025.
The automobiles and parts index (.FTNMX401010) fell the biggest, down 2.9%, followed by the banks index (.FTNMX301010) at 1.9%.
Precious Metal Miners(.FTNMX551030) led the gainers with shares of gold mining company Centamin (CEY.L) rising as much as 6.7%.
AngloGold Ashanti (AU.N) will acquire a smaller Egypt-focused rival in a stock and cash deal worth $2.5 billion .
The interest rate-sensitive property and home building index was also among the biggest gainers as data showed UK wage growth fell to a two-year low in the three months to July, while employment rose.
Economists said the data cleared the way for the Bank of England to cut interest rates in November.
In terms of individual stocks, financial solutions provider Alpha Group (ALPH.L) fell 11.1% after announcing a CEO succession plan, leaving it at the bottom of the mid-cap index. Clive Kahn will replace founder Morgan Tilbrook as CEO from January 2025.
Semiconductor wafer maker IQE (IQE.L) said its annual performance fell short of analysts’ expectations, sending its shares down 19.2%.
