British stocks experienced an optimistic close on the first trading day of October, buoyed by new data that indicated the continued expansion of the UK manufacturing sector, albeit at a slower pace. By Tuesday's close, the FTSE 100 index registered a gain of 0.36%, joining other European blue-chip indices in a noteworthy rally.
Fresh insights from S&P Global Market Intelligence revealed that the British manufacturing sector enjoyed further expansion in September, propelled by increases in output and new orders. The S&P Global UK Manufacturing PMI for the month settled at 51.5, a slight dip from August's 52.5, yet aligning with market expectations.
However, the enthusiasm among manufacturers appears to be waning as concerns about future prospects grow. Business optimism regarding the year ahead has plunged to a nine-month low, with the magnitude of this confidence drop being particularly alarming, second only to the declines observed in March 2020 when the COVID-19 lockdowns commenced.
Rob Dobson, director at S&P Global Market Intelligence, remarked, "Uncertainty surrounding government policy in the lead-up to the forthcoming Autumn Budget significantly contributed to the erosion of confidence, compounded by a backdrop of negative messaging. Companies are also increasingly apprehensive about broader geopolitical tensions and potential risks to economic growth." On the corporate front, Haleon is set to repurchase shares valued at 230 million pounds sterling from Pfizer, as part of the US biopharmaceutical company’s significant divestment of 2.66 billion pounds worth of shares in the British consumer healthcare group.
This maneuver will see Pfizer reduce its stake in Haleon from 22.6% to 15%. At the close of trading, Haleon's stock exhibited a modest increase of 0.48%..