© Reuters. FILE PHOTO: Signage for the London Stock Exchange Group is seen outside of offices in Canary Wharf in London, Britain, August 3, 2023. REUTERS/Toby Melville/file photo
By Johann M Cherian
(Reuters) -UK’s reversed early declines in choppy trading on Tuesday, helped by safe-haven sectors like consumer staples and healthcare, while lender Close Brothers hit its lowest levels in a month after reporting annual results.
The mid-cap firm fell as much as 7% in early trading and was last down 3.8% after its annual financial results took a hit from increased provisions in relation to Novitas.
The mid-cap housing the merchant bank shed 0.1%.
“Close say they have made a good start to FY 2024, but it is clear that the group is still not firing on all cylinders,” said Steve Clayton, head of equity funds at Hargreaves Lansdown (LON:).
The internationally focused FTSE 100 added 0.2%, helped by sectors traditionally considered relatively resilient in the midst of economic downturns.
Healthcare firms and the food beverage and tobacco sector housing consumer staples firms added 0.2% and 0.5%, respectively. Investment banks gained 0.7%.
Following hawkish statements by central bankers last week, concerns of interest rates staying higher for longer have lifted yields on government bonds globally, pressuring riskier assets like equities.
Among other movers, ASOS (LON:) pared some losses and was last down 0.4% as the online fashion retailer reported a slump in fourth-quarter sales and said second-half earnings were expected to be around the bottom of its guided range.
In a bright spot, A.G. Barr added 0.4% after the Irn-Bru maker posted a rise in its first-half profit, while Smiths Group (LON:) climbed 0.8% after posting a surge in annual operating profit in July.
Small-cap firm Videndum slumped nearly 30% after the company forecast a weak second half of the year, citing significant impact from strikes by Hollywood writers and actors.
