UK's FTSE 100 falls as energy stocks weigh; Autumn Statement in focus
Software company Sage (SGE.L) reported an 18% rise in its full-year underlying operating profit, sending its shares to a record high
LONDON: UK's FTSE 100 erased early gains to edge down on Wednesday as heavyweight energy stocks fell on lower oil prices, while the market response to the interim budget update was largely muted.
British finance minister Jeremy Hunt announced on Wednesday a bigger-than-expected cut in social security contributions and made incentives for business investment permanent in a bid to speed up the country's sluggish economy.
"It's a very muted response, I think a lot of these announcements were already factored in by the market," said Giles Coghlan, chief market analyst at brokerage GCFX.
The pound fell 0.2% against the dollar.
The large-cap FTSE 100 (.FTSE) was last down 0.1%, while the mid-cap index (.FTMC) climbed 0.8%.
British pub stocks including J D Wetherspoon (JDW.L), Marston's (MARS.L) and Fuller, Smith & Turner (FSTA.L) rose between 2.7% and 1.6% after the finance minister said the government would freeze all alcohol duties until Aug. 1 next year.
Spirits giant Diageo (DGE.L) rose 1.3%.
NatWest Group (NWG.L) fell 1.0% after Hunt said he would explore options for a Natwest retail share offer in the next 12 months.
Oil and gas sector (.FTNMX601010) dipped 2.5% as crude prices tumbled after OPEC+ producers delayed a meeting on output planned for Sunday, raising questions about the future course of production cuts.
Software company Sage (SGE.L) reported an 18% rise in its full-year underlying operating profit, sending its shares to a record high.
HSBC (HSBA.L) lost 1.4% after RBC downgraded the Asia-focussed lender's stock to "sector perform" from "outperform".
Entain (ENT.L) jumped 5.9% on a report that activist investors have built positions in the Ladbrokes-owner.
Kingfisher (KGF.L) slipped 6.5% after the home improvement retailer cut its annual profit forecast for the second time in three months.
Meanwhile, Intermediate Capital Group (ICP.L) added 1.6% as the asset manager is set to join the FTSE 100 index in December, replacing Hargreaves Lansdown (HRGV.L).
