The UK stocks have seen a decline for the 2nd consecutive day and hence the annual gains have trimmed down as well. The investors are concerned over the US condition as a deal on the budget is yet to be reached. Despite growth in the Chinese manufacturing industry and the overall British business sentiment improvement, the stock could not advance ahead today.
The benchmark index of UK known as The FTSE 100 Index or UKX went down by 0.5% to 5897.81. The gauge however has shown improvement of 5.8% in this year, mainly helped by the decision of European Central Bank to come up with unlimited bond purchase program. The same was implemented to support the weakest economies in the Euro region. On the other hand, the broader FTSE All Share Index plummeted by 0.4%. The benchmark index of Ireland, ISEQ Index published better results though. The same surged ahead by 0.4% today. The volume of shares changing hands was 40% less if compared to that of the 30-day average. The FTSE 350 Industrial Metals & Mining Index or also known as F3METL went down by 29%.
According to Adam Carroll, the Fund Manager of UK Equity Department of NFU Mutual Insurance Ltd. many investors were under the assumption that the US problem will get solved soon, however, the current scenario does not support that view. Adam added that in US, a political game is being played currently and when such games are played, the results don’t look good for the economy.
Coming to individual stocks, the Marks and Spencer Group went down by 0.9% and is at 383.3 pence currently. The largest clothing retailer of UK suffered the slump as according to a recent news report, the UK based retailer should expect a hard time in the New Year. On the other hand, the owner of famous brands such as Bisto gravy and Hovis bread, Premier Foods experienced its biggest drop in the last 5 months. It saw a plunge of 7.6% and is at 113 pence now. Its drop also marks the biggest decline of today among all the shares listed in the FTSE All Share Index. UK based beverage can maker Rexam suffered a drop of 0.1% to get down to 436 pence, despite announcing the decision of Chinese authorities to approve the sales of its personal care unit.