Retailers help drag FTSE 100 to three-month low as firms warn over tax rises

A anemic time of trading for miners and retailers has helped resistance London’s FTSE 100 to a three-month low, portion Vistry shares dropped sharply aft it warned implicit outgo pressures.

The blue-chip scale dropped 68.35 points, oregon 0.84%, to adjacent astatine 8,072.39 connected Friday, the lowest level since aboriginal August.

Mining giants Antofagasta, Glencore, Anglo American and Rio Tinto were among the day’s biggest fallers with losses of much than 5% pursuing a crisp driblet successful lipid prices.

The terms of Brent crude lipid slid astir 2.5% to 73.70 US dollars per barrel.

Shares successful retailers including Marks & Spencer, JD Sports Fashion, Sainsbury’s and Frasers Group besides fell aft a swathe of precocious thoroughfare businesses person warned implicit the interaction of taxation rises successful the Budget.

Asda was the latest supermarket to accidental the summation successful leader taxes would “probably beryllium inflationary to immoderate degree”, with it expecting to look £100 cardinal successful other costs.

This week, Sainsbury’s warned of a £140 cardinal hit, portion M&S said it was expecting £60 cardinal successful other costs, which volition beryllium pushed higher by an summation to the nationalist minimum wage.

Furthermore, housebuilder Vistry tumbled to the bottommost of the FTSE 100, with its shares down by much than 15% aft it warned that the higher complaint of nationalist security would besides beryllium felt on its proviso chain.

The institution besides said it was expecting immoderate unit connected physique costs implicit the adjacent year.

It was a anemic showing for different apical banal markets successful Europe connected Friday.

In Paris, the Cac 40 tumbled 1.17%, and successful Frankfurt, the Dax fell 0.76%.

Over successful the US, trading started connected a stronger footing with the S&P 500 up 0.4% and Dow Jones up 0.6% by the clip European markets closed.

The lb was down astir 0.6% against the US dollar astatine 1.29, and up 0.2% against the euro astatine 1.205.

In different institution news, shares successful British Airways proprietor IAG jumped aft it said its net soared by much than 15% successful caller months.

It reported an operating nett of 2 cardinal euros (£1.7 billion) successful the 3 months to the extremity of September, with little substance costs than the anterior year.

The institution besides announced a 350 cardinal euro (291 million) stock buyback scheme, adding that it expects its “strong fiscal show to proceed for the remainder of the year”. Shares successful IAG closed 7.2% higher.

The biggest risers connected the FTSE 100 were IAG, up 15.7p to 234.5p, Endeavour Mining, up 68p to 1,669p, Intercontinental Hotels Group, up 250p to 9,258p, BT, up 3p to 140p, and Pearson, up 22p to 1,204p.

The biggest fallers connected the FTSE 100 were Vistry, down 135.5p to 738p, Antofagasta, down 119.5p to 1,689p, Glencore, down 20.6p to 394.8p, Rio Tinto, down 255p to 4,946p, and Marks & Spencer, down 18.7p to 374.5p.