UK’s blue-chip stock index slipped on Wednesday after a slew of global data highlighted growing risks of a recession, with investors looking for comments from central bank policymakers which could guide near-term monetary policy expectations.
The FTSE 100 index (.FTSE) slipped 0.3% by 0711 GMT, inching down for a third consecutive session. The midcap FTSE 250 index (.FTMC), down 0.1%, hit over one-month lows.
Investors were on edge after business activity data signalled the global economy is increasingly at risk of sliding into recession. In Britain, a fall in factory output slowed private sector activity in August.
Focus is on the Kansas City Federal Reserve’s annual summit in Jackson Hole, Wyoming,with the U.S. central bank looking like it might avoid tipping the U.S. Economy into recession, but the outlook for Europe is far more worrying.
Among single stocks, HSBC (HSBA. L) slipped 1% after China’s Ping An Insurance Group defended its call to spin off HSBC’s Asia business, saying it cared about investment returns from its large stake but was not an activist investor.