By Pranav Kashyap
(Reuters) -London’s blue-chip stock index extended declines for a fourth straight session on Wednesday, dragged down by mining stocks as the upcoming UK budget and the U.S. presidential election prompted investors to shy away from risky assets.
The FTSE 100 and the domestically focussed FTSE 250 fell 0.6% each, with both the indexes closing just above one-week lows touched in the previous session.
Industrial metal miners lost 1.6%, while precious metal miners slipped 1.4% as prices of copper and gold slipped against a stronger dollar. [MET/L][GOL/]
The prospect of another Trump presidency has been in focus for investors, pushing them to the sidelines until further clarity. Former U.S. President Donald Trump’s policies include tariffs and restrictions on undocumented immigration, among other measures, that are expected to push up inflation. [MKTS/GLOB]
Meanwhile, the Bank of England meets in two weeks to take a call on interest rates, with the markets fully pricing a rate cut in November, and see a likely further rate cut in December.
Annual consumer price inflation eased to 1.7% in September, the lowest reading since April 2021, data showed last week.
Traders awaited remarks by BoE Governor Andrew Bailey due later in the day that could affect expectations around the central bank’s easing path. Investor focus is also on flash PMI figures due on Thursday and the British budget on Oct. 30.
Among individual stocks, Reckitt gained 3.9% after the Nurofen painkillers and Strepsils lozenges maker reported a smaller-than-expected fall in third-quarter underlying sales.
WPP jumped 6.1% after the British ad group reported a better-than-expected rise in third-quarter organic revenue.
(Reporting by Pranav Kashyap and Sruthi Shankar in Bengaluru; Editing by Shailesh Kuber, William Maclean)
