Ex-dividend trading weighs on FTSE 100

UK's FTSE 100 slipped in early deals on Thursday, as several blue-chip stocks traded ex-dividend, while midcaps held near one-week lows on fears that aggressive steps by the Bank of England to tame inflation will cause a sharp economic downturn.

UK's FTSE 100 slipped in early deals on Thursday, as several blue-chip stocks traded ex-dividend, while midcaps held near one-week lows on fears that aggressive steps by the Bank of England to tame inflation will cause a sharp economic downturn. The FTSE 100 index was down 0.1% at 0710 GMT. Miner Anglo American fell 3.8% as it traded without entitlement to its dividend payout. Lender HSBC, asset manager Abrdn, insurer Legal & General all fell between 2.4% and 4.8%, dragging down the index.

The domestically focussed midcap index was flat, after hitting a one-week low in the previous session. The prospect of hawkish central banks weighed on the mood, after data on Wednesday showed Britain's annual consumer price inflation jumped to a higher-than-expected 10.1% in July, fuelling bets of another big rate hike by the Bank of England next month.

AO World jumped 9.6% after the online electricals retailer said its trading had been broadly in line with expectations in the first quarter of the 2023 financial year. Made.com fell 12.0% after the online furniture retailer said it was considering equity capital raise.