The FTSE 100 fell on Thursday amid a Europe-wide equity retreat, and London’s leading index factored in a raft of stocks trading ex-dividend.
“There was a sea of red across European markets as healthcare, real estate, financials and industrial stocks were out of fashion,” said Russ Mould, investment director at AJ Bell.
“Weakness in names such as HSBC and AstraZeneca would suggest a more cautious tone among investors, but not a complete shift in sentiment.”
London’s leading index was down 0.4% at the time of writing.
There were more severe declines in Europe, as German consumer data continued to show negativity that pointed to a possible slowdown.
“The biggest downside moves were seen in the German DAX and French CAC which were down 0.7% and 0.6% respectively as lunchtime approached. The Swiss National Bank left its key interest rate unchanged at zero, as expected,” explained David Morrison, Senior Market Analyst at Trade Nation.
“The German GfK Consumer Climate survey was also broadly in line with forecasts. It continues to indicate a fair amount of pessimism amongst those surveyed. The index has been stuck deep in negative territory for the last four years.”
The rip-roaring rally in US stocks shows further signs of a pause, and the S&P 500 was heading for a weaker open, albeit a minor one compared to recent gains.
Stocks trading ex-dividend were among the top FTSE 100 fallers on Thursday, with Phoenix Group losing 5%.
There were also more declines for Ashtead and ConvaTec as the pair posted a second session of notable losses.
JD Sports recovered some of yesterday’s losses caused by their interim results as the group began a £100m share buyback programme.
Rio Tinto was the FTSE 100’s top riser with gains of 2%.