FTSE 100 Plunge: Jitters Over Economic Data and Sector Slumps

FTSE 100 faced a 0.6% fall amid disappointing economic growth data and sector slumps, particularly in financials and energy. Markets reacted to stagnant quarterly growth, and Sterling showed volatility. Positive movement seen in homebuilding and luxury goods sectors, with investors eyeing upcoming budget announcements.

The FTSE 100 index saw a 0.6% drop on Thursday after achieving record highs over three consecutive days. This decline largely stemmed from the underperformance of financial and energy shares as investors processed third-quarter economic growth data deemed disappointing.

Despite being within striking distance of the 10,000 points milestone, the blue-chip index showed sensitivity to several sector-specific setbacks. Investment banks suffered losses of 6.3%, with 3i Group's shares nosediving by 14.6% following a cautious stance on capital deployment into new investments. The energy sector faced a 1.1% decline owing to oversupply concerns from rising U.S. crude inventories.

The broader economic context showed Britain's growth as sluggish, exacerbated by a cyberattack on Jaguar Land Rover. Investors are now looking towards Finance Minister Rachel Reeves' budget on November 26, while life insurers and precious metal miners presented mixed performances, and stock gains were recorded in the homebuilding and luxury sectors.

(With inputs from agencies.)