FTSE 100 Slips as JD Sports Shares Plunge on Lower Profit Outlook and Rising Bond Yields
Market Overview and Key Movers
Aug 20 (Reuters) - The UK's FTSE 100 slipped on Thursday, as JD Sports plunged after issuing a downbeat forecast, while a rebound in government bond yields put pressure on stocks.
The blue-chip FTSE 100 index dipped 0.2% to 10,723.02 points by 1017 GMT, while the midcap FTSE 250 fell 0.3% to 24,575.63 points.
Major Decliners
JD Sports Shares Plunge
• British sportswear and fashion retailer JD Sports tumbled nearly 15%, on track for its biggest percentage drop in nine months, after it cut its profit outlook following a slump in second-quarter sales in its key North American market.
Other Notable Losers
• Shares of insurer Legal & General and wealth manager Investec fell 3.6% and 4.5%, respectively, as they traded without entitlement to a dividend payout.
• Among other UK movers, rail ticketing company Trainline extended its prior day's losses by 10% following the competition regulator's probe into ticket pricing.
• Ashtead Technology fell 15.4% after the subsea equipment rental and solutions firm forecast annual results below market expectations due to project delays across multiple regions.
Bond Yields and Macro Factors
Rising Bond Yields
• The yield on British 30-year bonds edged up to nearly 5.80% after having fallen to as low as 5.76% on Wednesday following a surprise U.S. Treasury buyback announcement, as worries about inflation and ballooning government debt kept markets nervous.
Oil Prices Surge
Middle East Tensions and Supply Concerns
• Meanwhile, oil prices climbed to three-week highs, driven by concerns that the impasse in the Iran war will continue to disrupt supply from the key Middle Eastern producing region. [O/R]
• U.S. President Donald Trump warned of economic consequences against any country that provided "any type of lifeline to Iran."
• Brent crude rose more than 2% to $94, helping lift shares of British energy majors BP and Shell.
(Reporting by Anand Gopal and Sruthi Shankar in Bengaluru; Editing by Harikrishnan Nair)
