The UK’s main stock index edged higher on Thursday, defying the weak trend across some major global markets as Nvidia failed to meet investors’ lofty expectations, while the focus shifted back to economic data and monetary policy outlook.
The blue-chip FTSE 100 index was up 0.1% as of 0714 GMT, having snapped a four-day winning streak with marginal losses on Wednesday. The domestically-focused mid-cap FTSE 250 dipped 0.1%.
UK markets, which have minimal exposure to technology stocks, somewhat withstood the pullback in AI-related stocks that weighed on U.S. and Asian equity markets after chip giant Nvidia’s current-quarter forecasts failed to live up to a recent history of trouncing Wall Street’s targets.
Construction and material shares led sectoral gains in the UK, while beverages was the worst hit as spirits group Diageo fell nearly 2% on trading ex-dividend.
FTSE 100 edges up led by pharmaceuticals, insurers
Meanwhile, Centrica rose 1.2% after Jefferies upgraded the British energy supplier’s stock to “buy” from “hold”. Bunzl rose 1% after RBC raised the rating on the business supplies distributor’s stock to “sector perform” from “underperform”.
The FTSE 100 is on track for its third straight weekly rise and a slight pullback for the month, lagging behind both Europe’s benchmark STOXX 600 and the U.S. S&P 500 in August.
With big-ticket earnings in the rear-view mirror, all eyes are now on labour market and inflation data out of the U.S. and euro zone, with investors on the lookout for any clues on the quantum of the Federal Reserve’s likely interest rate cut in September.
Source: Brecorder
