By Patrick Munnelly, Market Strategist, Tickmill
On Monday, the UK’s FTSE experienced relatively stable performance, with gains in mining stocks that were tracking higher metal prices, offsetting the drag caused by the shares of Barclays following less-than-stellar quarterly results. The commodity-focused FTSE 100 posted a modest gain of 0.2%.
Barclays third quarter results disappointed
British lender Barclays LON:BARC faced a challenging day, with its shares declining by 6.3%. This drop was triggered by the bank’s third-quarter profit, which showed a slight dip from the previous year, primarily due to reduced revenues in its investment banking division. Consequently, the banking index led the market in its decline, seeing a 1.5% drop.
Shares of Bunzl LON:BNZL saw a decline of 4% after the business supplies distributor revised its full-year revenue forecast downward. This adjustment was primarily driven by the impact of lower product prices, which had put pressure on the company’s financial outlook.
Barclays and Bunzl were pipped to the bottom spot by Experian LON:EXPN which shed 10% on the session.
Rio Tinto benefits from lower US treasury yields
On the positive side of the ledger, Precious metal miners managed to secure a 0.3% gain, with Rio Tinto LON:RIO benefiting from a retreat in U.S. Treasury yields and gaining over 3% to sit at the top of the blue chip index. Additionally, demand for precious metals, often considered safe-haven assets, experienced an upsurge amid escalating tensions in the Middle East.
UK unemployment remains steady
Concurrently, labour market data from the UK revealed that the unemployment rate remained steady at 4.2% during the three months leading up to August.
Nevertheless, the broader view of the labour market reflected a softening trend, with a reduction in the number of people employed. This development is solidifying expectations of a rate pause by the Bank of England (BoE) during its upcoming policy meeting, as it assesses the economic landscape.
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