Market Jitters: Metals, UK Budget, and Trump Speculation Weigh Down London Markets

London's FTSE indices continued to fall, affected by the forthcoming UK budget and the U.S. election uncertainty. Industrial metal miners dropped with falling copper prices, though precious metal miners gained. Investors remain cautious amid potential Trump's policies and expect Bank of England's interest rate decisions.

London's financial markets remained on edge, with the FTSE 100 falling 0.2% to 8,264.5 points, marking its fourth consecutive decline. Concerns over the looming UK budget and U.S. election have prompted investors to retreat from riskier assets. The domestically focused FTSE 250 also slid by 0.4%, reaching one-week lows.

The drop in industrial metal miners by 1.2% coincided with a dip in copper prices, attributed to the strengthening U.S. dollar. In contrast, precious metal miners recorded a rise of 0.8%, as safe-haven demand drove gold to unprecedented highs.

Investor apprehensions regarding another potential Trump presidency have heightened, considering his known policies that could elevate inflation. The market stays alert for the Bank of England's decisions, fully factoring in a possible rate cut in November and considering further cuts in December. Meanwhile, the yearly decrease in consumer price inflation to 1.7% in September has shifted attention to upcoming PMI figures and the British budget announcement on October 30.