London's FTSE 100 drops as consumer, mining stocks weigh
- The blue-chip FTSE 100 index fell 0.3% after four straight sessions of gains, with Diageo
London's FTSE 100 fell on Thursday, dragged down by heavyweight consumer and mining stocks, as investors weighed risks from rising global COVID-19 infections and supply chain disruptions.
The blue-chip FTSE 100 index fell 0.3% after four straight sessions of gains, with Diageo, Unilever , Rio Tinto and BHP Group being among the top drags.
The domestically focussed mid-cap index eased 0.1% after scaling record highs in the previous session, with travel-related stocks leading the declines.
Wizz Air, TUI and easyJet were among the top drags, down between 1.3% and 2%.
The FTSE 100 has recovered 10.2% so far this year, supported by easing pandemic-related restrictions and dovish central bank policies.
The index still underperforms its European and US peers as it is more likely to be affected by global factors like a weaker dollar as most companies listed in the index have a wider international presence.
"Market sentiments have been exhaustively disturbed by the persistent challenges including the industry-wide shortage of staff and deficiency of raw materials," said Kunal Sawhney, chief executive of Kalkine.
Sawhney expects British shares to rise further in the coming weeks with the FTSE 100 extending gains beyond YTD highs on higher consumer spending during the holiday season.
Global stocks eased as investors reduced their risk exposure ahead of the Federal Reserve's Jackson Hole symposium on Friday and what central bank chairman Jerome Powell might say about US tapering monetary stimulus.
Among stocks, recruitment agency Hays Plc added 1.7% after it forecast a "dramatic" recovery in the jobs market and said it would resume dividends.
U.K. bakery and fast food chain Greggs Plc rose 0.2% even after it became the latest food business to acknowledge a hit from supply chain interruptions. Retail stocks were down 0.8%.
British Land inched 0.2% higher after it said it was sharpening its focus on office campuses and retail and fulfilment projects through recent acquisitions and sales of properties worth 350 million pounds.
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