FTSE 100 Hits Three-Week Low Amid Tech Earnings and Market Volatility

London's FTSE 100 fell to its lowest level in over three weeks as investors reacted to U.S. tech giants Tesla and Alphabet's earnings reports. Aston Martin shares surged following strong half-year earnings. Gold and travel stocks climbed, while Burberry led a decline in personal goods stocks. Market participants are eyeing upcoming U.S. inflation data.

London's FTSE 100 index fell to its lowest level in over three weeks on Wednesday as investors absorbed earnings from U.S. tech giants Tesla and Alphabet. Aston Martin, however, saw its shares surge after an optimistic half-year earnings report.

The blue-chip FTSE 100 index declined by 0.5%, with the mid-cap FTSE 250 down 0.1% by 0720 GMT. Both indices were poised to log a second consecutive session of losses. Weak quarterly earnings from Alphabet and Tesla in the U.S. dampened investor sentiment.

The personal goods sector in London dropped 1.3%, with luxury brand Burberry falling 2.1% after LVMH reported slower sales growth in the second quarter. Most sectors, including financial and energy stocks, showed downward trends. In contrast, precious metals miners increased 2%, breaking a five-session losing streak as gold prices firmed.

Automobile and parts stocks also rose by 2.1%, with Aston Martin up 9.3% after reporting its half-year earnings, logging its best day since September 2023. easyJet climbed 6.9%, leading the FTSE 100 after reporting a 16% rise in third-quarter pretax profit. Travel and leisure stocks increased by 0.7%.

Shares of Ascential surged by 25.8% to top the FTSE 250 after Informa agreed to purchase the Cannes Lions Festival owner for £1.2 billion ($1.6 billion). Traders are also awaiting the domestic purchasing managers' index report, which is expected to clarify the British economic outlook.

Additionally, U.S. inflation data due on Friday will be closely monitored to gauge the Federal Reserve's future stance on interest rate cuts as the central bank's policy decision approaches.