London’s top financial index finished lower on Wednesday amid concerns of a slowdown in both the UK and US impacted trading.
The FTSE 100 had opened higher amid positive trading updates and acquisition activity, but stumbled on the back of some shaky economic data.
Stocks in the City were partly dented by a surprise fall in retail sales this month, according to fresh CBI (Confederation of British Industry) data, as households continue to witness high interest rates.
As a result, the index finished 22.46 points, or 0.27%, lower to end the day at 8,225.33.
Stateside, the main markets opened lower amid concerns of an economic slowdown as recent AI-boosted optimism faded.
US weakness dragged on sentiment across Europe in the afternoon, with Germany’s Dax was also impacted by a fall for Volkswagen.
The Cac 40 in France ended 0.69% lower and the Dax index was down 0.08% at the close.
Chris Beauchamp, chief market analyst at IG, added: “Tech stocks continue to cling on to small gains this afternoon but the broader tone is firmly negative.
“Higher inflation in Australia has not helped matters, and raises the uncomfortable prospect that major bugbear of the past two years is set to make an unwelcome return, leading to rate hikes featuring in central bank policy once again.
“All eyes are now firmly on Friday’s PCE (personal consumption expenditure) data in the US, at least until Sunday’s French elections.”
In currency, sterling dropped to a month-low against the dollar on the back of signs of consumer weakness in the UK.
The pound was down 0.47% at 1.262 US dollars and was down 0.18% at 1.181 euros.
In company news, Deliveroo was among the day’s risers after reports of takeover interest from US rival DoorDash.
Deliveroo was approached by DoorDash last month over a possible acquisition, according to Reuters reports, but the discussions are said to have ended after the pair were unable to agree on value.
Nevertheless, the takeover speculation helped lift shares by 1.2% to 129p.
AO World was in the green after the technology and white goods retailer posted a stronger-than-expected jump in profits.
It cheered an “outstanding” performance as it reported a 186% surge in underlying pre-tax profits to £34.3 million for the year to March 31.
AO shares finished the day up 1.1% at 114.2p.
Insurance giant Phoenix slipped after the group confirmed it was considering the sale of its SunLife business, which specialises in over-50s savings and retirement products.
Shareholders appeared sceptical of the move, with shares dipping by 1.5% to 518.5p following the update.
The price of oil was broadly stable during the session despite global concerns over potential consumption.
A barrel of Brent crude oil was up by 0.05% to 82.51 US dollars as markets were closing in London.
The biggest risers on the FTSE 100 were ConvaTec, up 4p to 235.4p, Marks & Spencer, up 4.2p to 291.9p, Centrica, up 1.8p to 137.75p, Scottish Mortgage Investment Trust, up 10.6p to 888.4p, and AB Foods, up 26p to 2,524p.
The biggest fallers on the FTSE 100 were IAG, down 4.35p to 163.85p, Smurfit Kappa, down 78p to 3,538p, Entain, down 13.2p to 647.2p, Land Securities, down 12p to 613.5p, and Imperial Brands, down 32p to 2,023p.