Trading
B&M European, ex-dividend trades drag FTSE 100 lower ahead of services activity data
By Devik Jain
(Reuters) – London’s FTSE 100 snapped a three-day winning streak to inch lower on Thursday, as B&M European Value Retail’s downbeat earnings outlook and ex-dividend trades weighed, while investors eyed services sector activity data due later in the day.
The blue-chip index fell 0.7%, with the discount retailer declining 2.1% after it forecast trading to remain volatile this year and organic growth to likely decline.
National Grid slipped 4.5% to the bottom of the index, while home improvement retailer Kingfisher lost 2.8%, as they traded without entitlement to a dividend payout.
The domestically focused mid-cap FTSE 250 index declined 0.3%, easing from a record peak scaled in the previous session.
Asian shares stepped back from three-month highs too, as market participants weighed inflation concerns ahead of key U.S. economic data this week, including a weekly unemployment report, May private payrolls data, and monthly jobs numbers.
“Given that it is half-term in many places and markets have been in a tight range for a number of days, it doesn’t feel we are going to get much excitement until the all important payrolls release tomorrow,” Deutsche Bank strategist Jim Reid wrote in a note.
“So, enjoy the next 30 hours of relative calm.”
After breaking above the 7,000-mark in mid-April, the FTSE 100 index has moved in a narrow range since then on worries that a rapid economic growth could lead to higher inflation and sooner tightening of ultra-loose monetary policies.
Earlier this week, data showed a record increase in British manufacturing activity in May, and the focus now turns towards IHS Markit’s services sector PMI due at 0830 GMT.
Among other stocks, Workspace Group dropped 2.3% after the office-space provider slipped into its first annual loss in 12 years.
BT Group fell 2.8% after Deutsche Bank downgraded the telecom group’s stock to “sell,” saying it is overvalued.
Chemicals maker Johnson Matthey rose 1.3%, after it entered into a joint agreement with Nano One Materials to develop lithium-ion battery materials.
(Reporting by Devik Jain in Bengaluru; Editing by Subhranshu Sahu and Uttaresh.V)
-
Investing2 days ago
7 Tips to Start Your Retirement Planning
-
Trading3 days ago
FBS Financial Market Analysts Forecast Gold Prices to Rise to $2,800
-
Finance3 days ago
Bandit Network’s Points SDK and Brave Ads Power Astar zkEVM’s Quest Platform “Yoki Origins”
-
Banking3 days ago
The Role of Geopolitical Tensions in Shaping Digital Banking’s Future in Emerging Markets