(Reuters) -London stocks edged lower on Monday, pressured by weakness in automakers and a stronger pound, as investors awaited comments from several Federal Reserve officials later in the day.
The benchmark FTSE 100 was down 0.11% at 1006 GMT, while the domestically-focused FTSE 250 fell 0.12%.
British automobiles and parts stocks fell 1.6%, tracking losses in the broader European automobile sector after Porsche scaled back plans for its electric vehicle rollout, prompting the luxury sportscar maker and its parent Volkswagen to slash their 2025 profit outlooks.
British luxury carmaker Aston Martin slipped 3.2%.
Sterling’s strength against the greenback also weighed on export-oriented firms, as investors paused after Friday’s selloff driven by fiscal concerns.
The Bank of England left key interest rates unchanged last week as it contended with sticky inflation and uncertainty around jobs and growth.
Caution dominated broader sentiment after a report on Friday showed Britain’s borrowing exceeded official forecasts, adding pressure on Finance Minister Rachel Reeves ahead of her November budget.
Precious metal miners rose 5.1%, the most among sectors, as gold hit a record high on rising expectations of a more dovish rate path. [GOL/]
Miner Fresnillo was among the top gainers in the FTSE 100 with a 4% rise while Hochschild jumped 8.8%.
Other miners, including Glencore and Rio Tinto, added 1.2% and 1.4%, respectively. An index of industrial metal miners edged up 1.3%, tracking gains in copper prices. [MET/L]
London-listed airlines declined due to delays at European airports following a reported cyberattack. EasyJet, British airways owner IAG and Wizz Air, fell between 1.3% and 1.5%.
British food ingredients maker Tate & Lyle fell about 6%, the most on the FTSE 250, after Morgan Stanley downgraded the stock to “underweight” from “equal-weight.”
Investors will watch for remarks from at least five Fed officials later Monday, while Chair Jerome Powell is due to speak Tuesday after last week’s 25-basis-point rate cut.
(Reporting by Sanchayaita Roy in Bengaluru; Editing by Tasim Zahid)
