Market Analysis

The FTSE 100, the UK's benchmark index, remained unchanged on Thursday, with gains from positive UK GDP data being offset by declines in companies trading ex-dividend.

The blue-chip FTSE 100 was flat at 0711 GMT after a streak of four consecutive sessions of gains, while the midcap FTSE 250 fell by 0.2%.

The UK's economy grew by 0.6% in the second quarter of 2024, matching economists' forecasts and following a strong 0.7% rebound in the first quarter after a mild recession in late 2023.

Sam North, a market analyst at investment platform eToro, noted, "June's GDP figure was flat, which could initially be concerning. However, it might give the Bank of England additional grounds to consider a rate cut next month."

The pound strengthened against the U.S. dollar, with money markets still predicting a 40% chance of the Bank of England reducing rates by 25 basis points in September.

Investor sentiment remained positive, partly due to the U.S. consumer inflation data, which supported expectations for the Federal Reserve to begin cutting interest rates next month.

Sector-wise, industrial metal miners fell by 1.1%, marking their third consecutive session of losses, as Rio Tinto and Anglo American traded ex-dividend.

Admiral Group saw a significant 11.6% increase after reporting a 32% rise in pre-tax profit for the first half of the year, exceeding forecasts, and announcing a special dividend.

Index heavyweight AstraZeneca rose by 0.8% following the U.S. Food and Drug Administration (FDA) granting priority review status to its cancer drug Imfinzi for limited-stage small cell lung cancer patients in the U.S.

Conversely, HSBC, Barclays, and Entain were among the worst performers, as these companies also traded without entitlement to their latest dividend payouts.

Paraphrasing text from "Reuters" all rights reserved by the original author.