(Reuters) -London stocks were steady on Tuesday and were on track to end the third quarter higher, while ASOS slid after the fashion retailer issued a revenue warning.
UK’s internationally exposed FTSE 100 inched up 0.1% as of 1122 GMT and domestically focused FTSE 250 climbed 0.2% in choppy trading.
Financials stocks were higher, with HSBC adding 0.7%, while 3i Group and Lloyds Banking Group were also marginally higher.
On the other hand, precious metal miners fell 1.2%, leading declines among sectors, as prices of safe-haven gold, silver and platinum slid on profit taking. [GOL/]
Still, UK’s main indexes are on track for quarterly gains, with the export-heavy index on track for its biggest quarterly jump since October 2022.
Much of it was driven by relief following the U.S.-UK trade agreement in May along with expectations of an interest rate cut by the U.S. Federal Reserve.
However, concerns around the precarious fiscal situation back home had shot up gilt yields earlier this month, while also limiting gains in domestically focussed midcap stocks.
Investor nervousness was reflected sectorally as precious metal miners are poised for their steepest quarterly gains on record.
Businesses are bracing for potential tax hikes in the UK government’s November budget as it strives to find ways to plug a hole in public finances.
The likelihood that gambling firms could be hit weighed on stocks such as Evoke, which lost 1.8%.
Meanwhile, ASOS warned that annual revenue would fall short of market expectations due to weak consumer demand, sending shares of the British fashion retailer down 10%.
Close Brothers lost 2.4% after the lender warned its fiscal 2026 net interest margin would come in below analysts’ forecasts.
BT group lost 2.6% after brokerage New Street Research downgraded the telecom stock to “neutral” from “buy’.
Global sentiment was also gloomy, with Washington fast approaching a potential government shutdown. On the data front, investors assessed a second estimate to UK’s second quarter gross domestic product.
(Reporting by Johann M Cherian in Bengaluru; Editing by Leroy Leo)
