UK stocks slip as banks and commodity-linked stocks weigh

Lloyds Banking

Tue 17:24

Updates to market close
Oct 20 (Reuters) - Britain's FTSE 100 ended lower on Tuesday as banks and commodity-linked stocks weighed, while signs of resilience in the labour market kept expectations alive for a Bank of England rate hike next month.
The blue-chip FTSE 100 index .FTSE fell 0.29% to 10,733.00 points, while the midcap FTSE 250 .FTMC was down 0.06% at 24,364.76.
Britain’s jobs market showed some recovery signs, with pay growth edging up and payrolls rising in September, data from the Office for National Statistics showed, bolstering the case for a rate increase at BoE's November meeting
Traders have almost fully priced in a quarter-point interest rate raise by the BoE next month, according to LSEG data
Banks .FTNMX301010 eased 0.8% and hit a more than four-month low. Heavyweight lenders HSBC HSBA.L, Lloyds LLOY.L and NatWest NWG.L fell between 0.8% and 1.2%
Energy stocks also weighed on the market, with heavyweights BP BP.L and Shell SHEL.L down 1.7% and 0.7%, respectively
The FTSE 350 basic resources index .FTUB5510 was down 1.6%, with miner Anglo American AAL.L falling 2% after maintaining its 2026 copper production guidance despite a 5% drop in third-quarter copper output
Defensive names offered some support. The FTSE 350 utilities index .FTUB6510 rose 1.5%, while National Grid NG.L gained 1.8% and was among the biggest boosts to the FTSE 100
Technology and online grocery firm Ocado OCDO.L rose 6.6% to top the FTSE 250 after J.P. Morgan raised its price target on the stock to 460 pence from 290 pence
The index for British homebuilders .FTNMX402020 jumped 3.3% to hit its highest since October 2
Oil prices slipped after touching a five-month high as traders weighed Houthi attacks on Saudi infrastructure and reports of vessel attacks in the Gulf O/R
The Times reported that Finance Minister John Healey rejected calls to raise capital gains tax ahead of his October 28 budget, amid concerns that higher taxes could prompt wealthy individuals to leave Britain or delay asset sales

(Reporting by Darshan Kumar and Medha Singh in Bengaluru; Editing by Harikrishnan Nair and Jonathan Ananda)
((darshan.kumar@thomsonreuters.com))