UK stocks fall as financials and consumer staples weigh; Dunelm Group jumps
- Dunelm gains on strong full year results, optimistic 2022 profit guidance
- Smiths Group tops FTSE 100 after agreement with ICU Medical
- FTSE 100 down 0.9%, FTSE 250 down 0.5%
September 8 (Reuters) – UK stocks fell on Wednesday, dragged down by financials and consumer staples, as Dunelm Group climbed to the top of the mid-cap index after releasing bullish annual results.
The blue-chip FTSE 100 Index (.FTSE) was down 0.9%, while the FTSE 250 Mid-Cap Index (.FTMC) was down 0.5%.
Bank stocks (.FTNMX301010) lost 1.2%, with major lenders Barclays (BARC.L) and Lloyds Banking Group (LLOY.L) falling 1.4% and 1.3% respectively, after Morgan Stanley reduced its stock price targets.
Consumer staples including soap maker Dove Unilever (ULVR.L), spirits maker Diageo (DGE.L) and tobacco maker British American Tobacco (BATS.L) each fell by 0, 9% to weigh the most on the FTSE 100 index.
“Concerns about the spread of the Delta variant hampering economic recovery in parts of the world are now weighing on European markets,” said Susannah Streeter, senior investment and market analyst at Hargreaves Lansdown.
“A spending cut accompanying tax hikes announced by (Finance Minister) Rishi Sunak is also likely to dampen the recovery, as consumer confidence is likely to suffer as people will have less take-home pay. so the grand reopening of the hospitality and retail boom that we have seen may fade. “
On October 27, Sunak will present a biannual budget report and three-year spending plan, for which most ministries have been urged to save, after announcing heavy tax increases to fund health and care on Tuesday. social. Read more
Halfords Group (HFD.L) fell 4.4% after the bicycle and auto parts retailer said the disruption to the global supply chain was impacting its cycling business. Read more
Contrary to trend, Dunelm Group (DNLM.L) gained 7.2% after the furniture retailer declared a special dividend and forecast a profit for fiscal year 2022 slightly above analysts’ forecasts. Read more
Smiths Group (SMIN.L) rose 4.5% to top the FTSE 100 after the tech company agreed to sell its medical unit to US-based ICU Medical Inc (ICUI.O) for $ 2.4 billion. Read more
Report by Devik Jain in Bangalore; edited by Uttaresh.V and Rashmi Aich
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