London Stocks Struggle Amid U.S. Inflation Concerns and Pharma Backlash
London stocks remained subdued as investors processed a Wall Street sell-off influenced by Federal Reserve Chair Jerome Powell's comments on interest rates. Concurrently, the pharmaceutical industry faces challenges with Eli Lilly's CEO criticizing U.K. drug prices. UK market movements followed, with notable declines in biotech, luxury, and auto sectors.
London's stock market faced a sluggish session on Wednesday, grappling with fallout from an overnight Wall Street sell-off. Comments from Federal Reserve Chair Jerome Powell regarding the ongoing struggle between high inflation and a weakening job market caused uncertain investor sentiment concerning future interest rate decisions.
The FTSE 100 dropped marginally by 0.08%, while the FTSE 250 saw a similar dip of 0.07%. Eli Lilly's chief executive harshly criticized the U.K.'s drug pricing as the worst in Europe. This sentiment echoes broader frustration among pharmaceutical giants like Merck and AstraZeneca, contributing to a 0.9% fall in the UK's pharma and biotech sector.
In other corporate moves, the personal goods sector faced significant losses, notably a 3.2% decrease in Burberry's shares. JD Sports Fashion reported a profit drop, maintaining its annual forecast, yet illustrating ongoing industry caution. Meanwhile, aerospace and defense sectors showed resilience, buoyed by changing geopolitical dynamics.
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