The FTSE 100 slipped again on Thursday as miners and companies trading ex-dividend weighed on the index despite a storming session in the US.
London’s leading index was down by 0.3% at the time of writing.
“The FTSE 100 was dragged lower as several heavyweights traded without the rights to their latest dividends on Thursday,” said AJ Bell investment director Russ Mould.
“This meant the index was the wallflower at the party, unable to join in with the gains seen elsewhere in Europe after a positive session in Asia and yesterday on Wall Street. Easing US inflation which came bang in line with expectations has helped soothe fears about an imminent rate hike from the Federal Reserve.
“Brent crude oil prices eased a touch as investors were at least able to reassure themselves that there hadn’t been any further deterioration in the backdrop in the Middle East over the last 24 hours.”
The FTSE 100’s performance on Thursday was in contrast to a strong session for US indices overnight, which powered ahead on the back of upbeat results from AI infrastructure stocks.
“Strong results from neoclouds like CoreWeave and Nebius point to relentless demand, with Nebius eyeing contracts at prices aligned with those achieved in SpaceX’s recent deals,” explained Matt Britzman, senior equity analyst, Hargreaves Lansdown.
“At those levels, the data centre payback period could be one to two years, making the spending far easier to justify. The crucial question now isn’t whether today’s pricing supports the buildout, but how long that pricing can last.”
In London, Antofagasta was rooted to the bottom of the leaderboard amid disappointment around lower production forecasts. Profits and revenue soared on the back of high copper prices, and the dividend was hiked by 80%. But investors understandably focused on what was to come, and that could be fairly tepid if production wobbles.
Adam Vettese, market analyst for etoro, said: “Antofagasta’s half year update delivered a classic mixed bag that the market has chosen to read cautiously.”
“Stronger copper prices and impressive cost discipline pushed earnings and cash flow higher, allowing a generous lift in the interim dividend. Yet the sharp production shortfall and the subsequent cut to full-year guidance have overshadowed the financial beats. Shares falling at the open underline that investors are prioritising operational reliability over short-term profit momentum.”
Antofagasta was down 5%. Rio Tinto was 3.8% in the red, largely due it losing the rights to its upcoming dividend.
It wasn’t all doom and gloom on Thursday. Housebuilders continued their rally, with Persimmon nearing 1,200p and Barratt Redrow taking the top spot in the FTSE 100 leaderboard with a gain of 2.8%.
Scottish Mortgage Investment Trust benefited from a US tech rally and rose 1.9%.