FTSE 100 slips as earnings disappoint

London's main index inched lower on Thursday as companies, including Pearson and Whitbread, gave dismal trading updates, while sentiment was subdued as some key elements of the U.S.-China trade deal were not clear. China will boost purchases of U.S. goods and services by $200 billion over two years in exchange for the rolling back of some tariffs under the deal.

The Phase 1 deal, however, does not fully eliminate the tariffs, while the purchase targets, which include energy, farm and manufacturing products, look daunting to achieve. The FTSE 100 gave up 0.1%, with education company Pearson sinking 12% to its lowest level since October 2008 and Premier Inn-owner Whitbread slipping 6%, as the corporate earnings season kicked into high gear.

Associated British Foods outperformed the blue-chip bourse, as it rose 3% after it posted solid revenue growth at its Primark fashion chain and stood by its annual earnings forecast. The midcap FTSE 250 gained 0.1%, helped by a 9% surge in Wood Group after the oilfield services provider forecast higher 2019 core earnings.