The FTSE 100 remained relatively stable on Thursday, failing to maintain its momentum from the previous three days of gains and underperforming compared to other European markets. Losses among heavyweight constituents trading ex-dividend and weakness in the mining sector offset gains in other areas. Stronger-than-expected UK GDP data further complicated the market landscape.
- The FTSE 100 was little changed after three days of gains.
- HSBC, Shell, BP, Rio Tinto, Unilever, and GSK all traded ex-dividend, impacting the index negatively.
- Rio Tinto was down 4%, with iron ore prices declining ahead of Chinese steel output data.
- Admiral surged 5.6% following better-than-expected profit.
- Aviva rose 2.4% due to strong operating profit growth and progress integrating Direct Line.
- Stronger-than-forecast UK GDP data added to the Bank of England’s hawkish bias.
The performance of the FTSE 100 appears to be a story of offsetting factors. Dividend payouts from major companies created a drag on the index, further compounded by commodity price concerns impacting mining stocks. However, positive earnings reports from some financial institutions provided some upward pressure. The overall economic outlook, indicated by the GDP figures, suggests a complex environment for the Bank of England’s monetary policy decisions.