Shares listed in London concluded the day with minor changes as increasing tensions in the Middle East take center stage, generating a sense of uncertainty across major markets. As the trading day came to a close, the FTSE 100, which comprises the largest companies listed on the London Stock Exchange, experienced a slight decrease of 0.02%. On the economic front, the headline S&P Global UK Construction PMI surged to a remarkable 29-month high of 57.2 for the reporting period, up from 53.6 in August.
This robust performance is indicative of a healthy construction sector, signaling growth and resilience amidst global economic challenges. Tim Moore, economics director at S&P Global Market Intelligence, attributed this surge to a blend of lower interest rates, stable domestic economic conditions, and an increase in infrastructure projects that have positively impacted order books in recent months. Additionally, data released by the Society of Motor Manufacturers & Traders revealed a marginal increase in the number of new vehicle registrations within the UK, which reached 275,239 units in September, compared to 272,610 units during the same month last year.
This uptick suggests a gradual recovery in the automotive sector as consumer confidence improves. Turning to corporate news, Barclays has reaffirmed its overweight rating on Reckitt Benckiser Group—denoted by the trading symbol $RKT—highlighting the company's ongoing transformation initiatives, although shares of Reckitt dipped by 0.39% during trading.
Analysts have expressed caution regarding the group's ambitious strategy, recalling their prior attempts at simultaneous integration of various business segments and the resultant challenges faced between 2017 and 2019, which ultimately led to significant operational disappointments and a reshuffle within senior management.
In contrast, the current strategy emphasizes the use of external consultants to facilitate a smoother transition and ensure that internal management remains focused on the operational aspects of the business. This prudent approach may help mitigate the distractions that plagued Reckitt's earlier transformation efforts..