UK Markets Dip:
FTSE 100 Edges Lower on Ex-Dividend Trades
The UK’s main FTSE 100 index fell 0.2% early on Thursday, extending its losing streak for the fifth consecutive session, a trend not seen since May. The decline was driven by several stocks trading ex-dividend, including International Consolidated Airlines Group (IAG), Antofagasta, Prudential, Admiral, DS Smith, and Croda, all of which dropped over 1%.
Sector Performance:
Miners and Chemicals Lag, Autos Outperform
Industrial metal miners and chemicals were the worst-performing sectors, weighed down by economic concerns and weak market sentiment. However, the automobiles sector was the top gainer, with household goods also performing well. Notably, homebuilder Vistry rose 2.3% after announcing a £130 million share buyback plan and reporting stronger half-year earnings.
Mid-Cap Index Steady:
FTSE 250 Flat After Recent Lows
The mid-cap FTSE 250 index remained flat, recovering slightly after hitting a nearly one-month low on Wednesday. The index’s performance reflects ongoing domestic economic concerns and market caution ahead of critical economic data.
Market Sentiment:
Focus Shifts to U.S. Jobs Data and Central Bank Decisions
Investor focus is now on upcoming U.S. economic indicators, including the ADP National Employment report and key Purchasing Managers’ Indexes, which could provide insights into the health of the U.S. economy. In Europe, attention will also be on the euro zone’s retail sales data and the UK’s S&P Global PMI.
Central Bank Watch:
BoE and ECB Policy Announcements Loom
Looking ahead, major central banks are set to announce their policy decisions in September. Market participants anticipate that the European Central Bank (ECB) may implement another rate cut, while the Bank of England (BoE) is expected to keep rates steady amid mixed economic signals.
