FX.co ★ FTSE 100 Down for 3rd Session

The FTSE 100 closed lower on Wednesday, extending its slide for a third consecutive session as higher-than-expected inflation and a rise in government borrowing dampened sentiment ahead of the UK budget. Annual consumer price inflation accelerated to 3.5% in September, above the consensus forecast of 3.4%, adding to pressure on the Bank of England to raise interest rates. At the same time, public sector net borrowing reached £97.8 billion in the April–September period, £6 billion higher than the Office for Budget Responsibility’s March projection. Borrowing in September alone came in at £24.5 billion, exceeding both forecasts and the level recorded a year earlier.

Sector-wise, banks, miners, defence and aerospace, and consumer stocks dragged the index lower. HSBC slipped 1%, Lloyds Banking Group declined 1.2%, and Rio Tinto fell 2.8%. Fresnillo lost more than 2% after reaffirming its full-year silver production guidance despite reporting lower year-on-year output. Rolls-Royce and BAE Systems also retreated. In contrast, utilities outperformed, with SSE advancing 1.8% and National Grid up 1.6%.