FTSE 100 Dips Amid Ex-Dividend Trades and U.S. Economic Concerns

UK's FTSE 100 stock index slid 0.2% as ex-dividend trades and weak U.S. economic sentiment weighed. Among top losers were IAG, Antofagasta, and Prudential, while homebuilder Vistry and retailer ASOS showed gains. Attention now shifts to U.S. job data and upcoming central bank policy decisions in September.

UK's main FTSE 100 stock index inched lower on Thursday, impacted by ex-dividend trades and weak sentiment driven by U.S. economic concerns ahead of crucial jobs data.

The blue-chip FTSE 100 index fell 0.2% as of 0710 GMT, on track for a fifth consecutive session of losses, a streak unseen since May. Meanwhile, the FTSE 250, focused on domestic mid-cap stocks, remained flat after hitting a one-month low.

Notable declines came from stocks trading ex-dividend like IAG, Antofagasta, Prudential, Admiral, DS Smith, and Croda, each dropping over 1%. Industrial metals and chemicals sectors suffered the most, while the automobile sector saw gains. On the upside, household goods stocks performed well, with Vistry rising 2.3% on a share buyback plan and strong earnings, and online retailer ASOS surging 12% on positive profit forecasts.

Concerns over the U.S. economy were fueled by weak manufacturing data and mixed labor statistics, highlighting the potential for a larger Federal Reserve rate cut ahead of an upcoming policy meeting. Attention is on U.S. ADP National Employment and PMI data, along with euro zone retail sales and S&P Global UK's PMI. Major central banks, including the Bank of England and European Central Bank, are also set to announce key policy decisions in September, with expectations for varying rate actions.

(With inputs from agencies.)