FTSE Index Drops as Pound Hits Two-Month Low
- The FTSE 100 index in London fell by 47.90 points to close at 8,258.64 due to the pound's decline against the US dollar.
- Major corporations including Lloyds and Reckitt Benckiser reported mixed earnings, with some shares rising despite overall negative market trends.
- Investor sentiment remained low, highlighting ongoing economic uncertainties and external factors affecting market performance.
In London on October 23, 2024, the FTSE 100 index continued its downward trend, closing lower for the fourth consecutive day as the British pound fell to a two-month low against the US dollar. This decline was attributed to decreased metal prices affecting miners and commodity firms. Although strong earnings from companies like WPP and Reckitt Benckiser provided some positive sentiment, they were insufficient to lift the overall market mood. The dollar strengthened amid concerns surrounding the upcoming US election, impacting the pound's performance. Additionally, earnings reports revealed mixed results among major corporations. While Lloyds reported improved consumer confidence, it also noted a slight profit drop compared to the previous year. Several firms, including Frasers Group, opted to hold off on major investment decisions amid uncertainties in the market. In the trading session, a barrel of Brent crude oil prices fell significantly, mirroring the overall negative market environment. Notably, the session saw some companies experiencing sizeable declines, such as 3i Group and Anglo American, contributing to the index's drop. Despite these challenges, certain firms like WPP and Reckitt managed to rise in share value, highlighting the variance in performance across sectors. The overall lack of investor enthusiasm suggested a cautious approach to market engagement, emphasizing the ongoing economic uncertainties and the impact of external factors like global political events on investor confidence.