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FTSE 100 ends flat as lower metal prices offset retail gains

Published 08/22/2024, 03:53 AM
Updated 08/22/2024, 12:02 PM
© Reuters. FILE PHOTO: LSEG signage is seen on screens in the lobby of the London Stock Exchange in London, Britain, May 14, 2024. REUTERS/Hannah McKay/File Photo
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By Khushi Singh and Purvi Agarwal

(Reuters) -The UK's benchmark FTSE 100 ended little changed on Thursday, as lower metal prices weighed on sectoral heavyweights, while investors assessed softer U.S. business activity data ahead of the Jackson Hole economic symposium.

The blue chip FTSE 100 was up 0.1%, while the mid-cap FTSE 250 index was down 0.4%.

Industrial metal miners led sectoral declines with a 1.5% slip, while precious metal miners followed with a 1.1% drop.

Both copper and gold prices eased as the dollar ticked up, taking sector heavyweights Glencore (OTC:GLNCY), Anglo American (JO:AGLJ) and Hochschild down between 1.8% and 2.7%.

On the contrary, retailers led sectoral gains with a 1.4% jump, as JD (NASDAQ:JD) Sports Fashion climbed 10.7% to the top of FTSE 100 after the company reported a 2.4% rise in second-quarter underlying sales.

On the data front, British business activity sped up this month and cost pressures were the weakest in over three years, signalling growth momentum going into the second half of 2024.

U.S. business activity fell to a 4-month low in August, bolstering the likelihood that inflation will stay on a downward trend over the coming months.

Focus now shifts to the eagerly anticipated Jackson Hole economic symposium, with Fed Chair Jerome Powell set to speak on Friday.

The policymaker is expected to acknowledge the case for a September rate cut amid dovish comments from other central bank officials and recent data adding to the narrative of cooling inflation in the United States.

© Reuters. FILE PHOTO: The London Stock Exchange Group offices are seen in the City of London, Britain, December 29, 2017. REUTERS/Toby Melville/File Photo

Among individual stocks, shares of Hays rose 2.5%after annual profit came in line with analysts consensus and the recruiter firm said it would make further cost cuts.

Ithaca Energy (LON:ITH) slipped 5.5%, after the North Sea oil and gas company reported a lower first-half net profit.

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