FTSE 100 Plummets Amidst Strong Wage Growth and Investor Pressure

Britain's FTSE 100 hit a three-week low as strong wage growth data led investors to rethink expectations of Bank of England interest rate cuts. The blue-chip index fell 0.8% and the mid-cap FTSE 250 dropped by 1.3%. Bunzl and Chemring Group were significant contributors to these declines.

In a tumultuous trading session, Britain's FTSE 100 plunged to its lowest in three weeks, driven by unexpected domestic wage growth figures. Investors recalibrated their forecasts on Bank of England's interest rate cuts, resulting in a 0.8% drop in the blue-chip index, while the FTSE 250 fell 1.3%.

The business supplies distributor Bunzl emerged as the day's biggest loser, shedding 5.7% following concerns over low prices affecting annual profits, particularly in Europe. This decline impacted the general industrial sub-index, which slid by 2.3% as investor sentiment weakened.

Further weighing on market dynamics, Chemring Group fell by 13% due to lower annual underlying pretax profit, affecting aerospace and defence stocks, down 1.4%. Conversely, Goodwin's performance defied the trend with a significant 6.8% increase in first-half pretax profit.

(With inputs from agencies.)