London Stocks Slide Amid Financials Weakness and Inflation Worries

London stocks closed lower as financials led a weakening market, influenced by looming data releases and policy changes. FTSE indices faced consecutive declines, with finance and housing sectors particularly affected. Investor attention is on inflation and employment data, amidst takeover speculations and sector-specific movements.

London's stock market finished in the red on Monday, led by a downturn in financials, as market players prepared for a week loaded with economic data. Limited optimism came from small gains in healthcare and utilities stocks.

The FTSE 100 dipped by 0.2%, marking a third straight session of losses, while the mid-cap FTSE 250 fell by 0.6%, tracking its fourth consecutive day of decline. The banking heavyweights like Barclays, HSBC, and Standard Chartered fell between 0.7% and 1%, contributing to an overall 0.8% sector decline. Construction & Materials saw a 1.4% dip following a Rightmove survey highlighting a 1.8% drop in average UK home prices over four weeks ending November 8, the largest such drop since 2012. Finance Minister Rachel Reeves is anticipated to introduce a levy on high-value homes in the November 26 budget, which adds to the financial pressures.

The market now braces for the UK's inflation report amid the approaching budget announcement, as the Bank of England considers its rate decision prior to the December 18 meeting. Global focus also stays on U.S. employment data and Nvidia's earnings, with tech valuation concerns persisting. London's market remains somewhat insulated from the tech selloff due to limited exposure. Notably, advertising giant WPP surged 11% on potential takeover interest, marking its best day in five years, while the pharma and utilities sectors made modest gains. Conversely, HICL Infrastructure and Genuit experienced significant downturns after unfavorable announcements.

(With inputs from agencies.)