UK’s FTSE 100 Resilient Amid Global Sell-Off, Buoyed by Health-Care Shares and Weak Pound
London’s blue-chip index holds firm as sector rotation helps offset broader equity market pressure
London’s FTSE 100 index edged slightly higher on Tuesday even as equity markets globally buckled under risk-off pressure.
While the mid-cap FTSE 250 slipped 0.5 per cent and metals and financials weighed heavily, the FTSE 100 benefitted from strong health-care names and a weaker sterling, which provided a tail-wind for the large multinational companies listed in London.
Despite a backdrop of rising global bond yields and investor caution ahead of the Bank of England’s policy meeting, the health-care sector delivered gains of around 1.3 per cent, helping to offset losses in mining and defence stocks.
The pound’s retreat added an additional lift to the Footsie by improving the competitive position of UK exporters and dollar-earnings companies.
The mid-cap index extended a seven-session losing streak, reflecting investor preference for large-cap, more defensive stocks in a fragile market environment.
Metal miners were among the weakest links, with copper and gold prices under pressure amid dollar strength.
Financials also saw broad weakness, as insurers and investment-banking shares slid in line with risk sentiment.
Looking ahead, attention is likely to focus on incoming UK inflation and wage data, and the Bank of England’s signal on interest-rate policy.
With global growth concerns mounting and inflation momentum cooling, markets are increasingly watching for any indication of policy easing.
For now, the modest out-performance of the FTSE 100 underscores the structural strength of large-cap UK firms and the benefit they derive from sterling weakness and resilient sectors in times of turbulence.
While the mid-cap FTSE 250 slipped 0.5 per cent and metals and financials weighed heavily, the FTSE 100 benefitted from strong health-care names and a weaker sterling, which provided a tail-wind for the large multinational companies listed in London.
Despite a backdrop of rising global bond yields and investor caution ahead of the Bank of England’s policy meeting, the health-care sector delivered gains of around 1.3 per cent, helping to offset losses in mining and defence stocks.
The pound’s retreat added an additional lift to the Footsie by improving the competitive position of UK exporters and dollar-earnings companies.
The mid-cap index extended a seven-session losing streak, reflecting investor preference for large-cap, more defensive stocks in a fragile market environment.
Metal miners were among the weakest links, with copper and gold prices under pressure amid dollar strength.
Financials also saw broad weakness, as insurers and investment-banking shares slid in line with risk sentiment.
Looking ahead, attention is likely to focus on incoming UK inflation and wage data, and the Bank of England’s signal on interest-rate policy.
With global growth concerns mounting and inflation momentum cooling, markets are increasingly watching for any indication of policy easing.
For now, the modest out-performance of the FTSE 100 underscores the structural strength of large-cap UK firms and the benefit they derive from sterling weakness and resilient sectors in times of turbulence.
