UK Stocks Dip Amid Nvidia Fallout and Utility Concerns

UK stocks faced declines for the third consecutive session. Utilities and technology sectors lagged as investors scrutinized Nvidia's performance. The midcap index shed 0.5%, with significant drops in Drax Group and PPHE Hotel. The Confederation of British Industry reported reduced confidence and activity in the services sector.

On Thursday, UK stocks experienced a third day of losses, with the blue-chip FTSE 100 and midcap index both falling 0.5% by 1030 GMT. The declines were exacerbated by concerns in the utilities and technology sectors, following Nvidia's results, which fell short of some analyst projections.

Drax Group led the midcap index's downturn, plummeting 9.7% due to an investigation by Britain's financial watchdog into its biomass sourcing disclosures. Other utility stocks such as Centrica, SSE and United Utilities also experienced losses of 1.4% to 1.7%.

In the technology sector, a 1.5% drop was observed, in line with global trends post-Nvidia results. Additionally, precious metal mining stocks slipped 1.7%, while the FTSE 250's PPHE Hotel dropped 13.8% after declining half-year earnings. Banking giant Barclays fell 1.1% after selling its Entercard stake. Conversely, Softcat rose 3.8% after forecasting increased annual profit for the third time in six months.

(With inputs from agencies.)