The FTSE 100 underperformed its European counterparts on Thursday, driven lower by disappointing earnings reports, declining oil prices, and several stocks trading ex-dividend. Weakness in specific sectors and companies, coupled with concerning UK GDP data, contributed to the index’s decline.
- The FTSE 100 traded lower.
- BP and Shell fell over 1% due to concerns about a global supply surplus impacting crude markets.
- GSK (-0.7%) and Sainsbury’s (-4%) dragged on performance as they traded ex-dividend.
- 3i plunged 10% after reporting slower sales growth at Action.
- Aviva dropped over 3.5% due to weakness in its UK general insurance business, despite upgraded targets and stronger profits.
- Rolls-Royce slipped around 1% citing ongoing supply chain issues, despite solid demand.
- UK GDP grew just 0.1% in Q3, with September output contracting 0.1%.
The market sentiment towards the FTSE 100 appears cautious. Several major companies experienced significant downturns due to internal issues and external economic pressures. The weak UK economic data adds to the uncertainty, suggesting potential headwinds for the index’s future performance.