FTSE 100 hits three-month low as gold miners weigh

The blue-chip FTSE 100 index was 0.7 per cent lower, and the mid-cap FTSE 250 was down 0.9 per cent

The FTSE 100 dropped to its lowest level in nearly three months on Thursday, pressured by gold miners, while Unilever soared after beating profit estimates for the first half.

The blue-chip FTSE 100 index was 0.7 per cent lower by 0719 GMT, and the mid-cap FTSE 250 was down 0.9 per cent.

Most major sub-sectors dropped, as investors digested market movements and a slew of corporate updates.

Precious metal miners lead declines on the FTSE 100 with a 4.7 per cent drop. Gold miners Fresnillo and Endeavour Mining slid more than 3 per cent each, as spot gold prices dropped on profit-booking.

Centamin slid 8 per cent to the bottom of the FTSE 250 after it announced its interim results and left its 2024 outlook unchanged.

Energy and industrial miners also dropped 1.2 per cent and 1.4 per cent each, in tandem with oil and copper prices.

Industrial support services stocks were down 2.3 per cent, weighed down by a 6.5 per cent decline in Rentokil after the pest-control company reported its interim half-yearly results.

Personal care, drug and grocery sector was the only outlier, adding 3.8 per cent on strength from Unilever. The soap maker jumped 6.7 per cent after it beat profit estimates for the first half of the year.

Globally, investor sentiment was dampened after big tech companies Alphabet and Tesla failed to impress investors, weighing on the tech-heavy Nasdaq and the S&P 500.

Data-wise, the U.S. PCE price index, due on Friday, will be on watch to gauge the Fed's stance on interest rate cuts.

In other updates, British American Tobacco gained 1.4 per cent after it reported a 1.3 per cent rise in half-year profit exceeding analyst expectations.