On November 15, 2024, the FTSE 100 index fell by 37 points, closing at 8,198.83, reflecting growing concerns over the UK economy as GDP growth slowed to just 0.1% in the third quarter of 2024, down from 0.5% in the previous quarter. This disappointing economic performance has led to increased caution among investors [a5b5c0ed].
The decline in the FTSE 100 is compounded by recent inflation data from the US, where year-on-year inflation for September was reported at 2.4%, exceeding expectations. Core inflation also came in higher than anticipated at 3.3% [853f4cb1]. Federal Reserve Chair Jerome Powell indicated that there is no immediate rush for further US rate cuts, which has influenced global market dynamics and contributed to a drop in gold prices, now at $2,566 an ounce [a5b5c0ed].
Among the leading fallers in the FTSE 100 was GSK, which has been under pressure following the announcement of a $2.2 billion settlement related to its Zantac product [853f4cb1]. In contrast, Audioboom raised its profit expectations to $2.8 million (£2.2 million) after reporting a significant 49% increase in revenue [a5b5c0ed].
The economic landscape in the UK remains challenging, with production output decreasing by 0.2%, although the services and construction sectors showed slight growth of 0.1% and 0.8%, respectively [a5b5c0ed]. Ben Jones from the CBI noted that uncertainty ahead of the upcoming Budget on October 30 has affected business decisions, further contributing to the cautious sentiment in the market [a5b5c0ed].
As the UK government prepares for a challenging fiscal environment, the FTSE 100 continues to be influenced by both domestic economic challenges and international market dynamics, with investors closely monitoring upcoming economic indicators and corporate earnings [5339c61a].