Personal goods, homebuilder stocks lead FTSE 100 lower

The blue-chip FTSE 100 index was down 0.4 per cent, reaching its lowest levels in three weeks earlier in the session

Britain's main stock index closed lower on Wednesday, led by a decline in personal goods and homebuilder stocks, while investors assessed key UK and U.S. economic data ahead of interest rate decisions by central banks in coming weeks.

The blue-chip FTSE 100 index was down 0.4 per cent, reaching its lowest levels in three weeks earlier in the session. The domestically-focused mid-cap FTSE 250 closed flat, after its biggest decline in almost a month.

Rate-sensitive homebuilders were near one-month lows, down 2.9 per cent, after Barratt Developments said it did not anticipate profit growth until fiscal 2026. The homebuilder stumbled 4.6 per cent.

The personal goods index retreated 4 per cent, reaching its lowest levels since February 2010, as sectoral heavyweights Burberry and Watches of Switzerland Group plunged 4.5 per cent and 3.4 per cent respectively.

Automobiles and parts were the top sectoral gainer, jumping 2.2 per cent, while aerospace and defence shares gained 0.9 per cent as Rolls-Royce continued gains for the second session, advancing 1.8 per cent.

On the data front, a survey showed Britain's services activity grew last month at the fastest pace since April and price pressures eased, pointing to a more benign inflation outlook and a settling of the economy after July's election.

U.S. job openings dropped to a 3-1/2-year low in July, suggesting the labour market was losing steam, but probably not enough for the Fed to consider a big interest rate cut this month.

Among individual stocks, Direct Line Insurance Group declined 2.4 per cent after a half-year operating profit miss.

Airtel Africa tumbled 5.2 per cent to the bottom of the FTSE 100 after JP Morgan downgraded the stock to "Neutral" from "Overweight".