London’s top stock indices faltered on Wednesday with financial firms dragging on the FTSE 100, despite the OECD upgrading its economic growth forecast for the UK.
The FTSE 100 dipped 14.06 points, or 0.17%, to close at 8,268.7.
Asia-focused financial firms Prudential and Standard Chartered were among the biggest fallers of the day, as the dust settled following news of economic stimulus measures in China which boosted stocks on Tuesday.
Meanwhile, a new report from the Organisation for Economic Co-operation and Development (OECD) placed the UK joint-second in its economic growth forecasts for 2024.
The last time the OECD put out a forecast in May, the UK was at the bottom of the pile of G7 countries, but has since found that growth projections had risen this year.
It was an equally downbeat session for other top stock market indices in Europe. In Paris the Cac 40 was down 0.5%, and in Frankfurt the Dax declined 0.39%.
Across the pond, in New York, the S&P 500 was more or less flat and the Dow Jones was down about 0.5% by the time European markets closed.
The pound was losing ground against key currencies on Wednesday. Sterling slipped about 0.5% against the US dollar at 1.335, and was down 0.3% against the euro at 1.1965.
The price of Brent crude oil slipped about 0.9% to 74.50 US dollars per barrel.
In company news, shares in DFS were given a lift despite the sofa specialist revealing it tumbled to a loss for the past year and reporting declining sales.
Nevertheless, the retailer said trading since July has been in line with expectations and that it was expecting a gradual recovery across the market over the course of the year. Shares in DFS closed 6.6% higher.
Everyman shares also edged up after the cinema group said it had stronger audiences over the first half of the year, and that it had weathered the impact of strike action in Hollywood on film schedules.
The company said it was looking forward to seeing a boost from upcoming film releases including Joker, Gladiator II and Wicked. Its share price increased 3.4%.
Elsewhere, Rightmove rejected the latest takeover approach from Rupert Murdoch’s REA Group, worth £6.1 billion, telling shareholders the proposal “continues to be unattractive”.
REA said it was “disappointed” by the latest rejection and the fact that it has had no substantial engagement with Rightmove. Shares in Rightmove closed 1.6% lower.
The biggest risers on the FTSE 100 were Rentokil, up 16.1p to 376.7p, Fresnillo, up 20.5p to 619.5p, Endeavour Mining, up 59p to 1,905p, Smiths Group, up 39p to 1,764p, and easyJet, up 11.2p to 521.2p.
The biggest fallers on the FTSE 100 were Prudential, down 22.6p to 642.2p, BP, down 9.9p to 400.25p, Persimmon, down 40.5p to 1,641p, Standard Chartered, down 17p to 763.2p, and Diageo, down 51.5p to 2,497.5p.