LONDON, June 3 — London’s FTSE 100 snapped a three-day winning streak to inch lower today, as B&M European Value Retail’s downbeat earnings outlook and ex-dividend trades weighed, while investors eyed services sector activity data due later in the day.
The blue-chip index fell 0.7 per cent, with the discount retailer declining 2.1 per cent after it forecast trading to remain volatile this year and organic growth to likely decline.
National Grid slipped 4.5 per cent to the bottom of the index, while home improvement retailer Kingfisher lost 2.8 per cent, as they traded without entitlement to a dividend payout.
The domestically focused mid-cap FTSE 250 index declined 0.3 per cent, easing from a record peak scaled in the previous session.
Asian shares stepped back from three-month highs too, as market participants weighed inflation concerns ahead of key US economic data this week, including a weekly unemployment report, May private payrolls data, and monthly jobs numbers.
“Given that it is half-term in many places and markets have been in a tight range for a number of days, it doesn’t feel we are going to get much excitement until the all important payrolls release tomorrow,” Deutsche Bank strategist Jim Reid wrote in a note.
“So, enjoy the next 30 hours of relative calm.”
After breaking above the 7,000-mark in mid-April, the FTSE 100 index has moved in a narrow range since then on worries that a rapid economic growth could lead to higher inflation and sooner tightening of ultra-loose monetary policies.
Earlier this week, data showed a record increase in British manufacturing activity in May, and the focus now turns towards IHS Markit’s services sector PMI due at 0830 GMT.
Among other stocks, Workspace Group dropped 2.3 per cent after the office-space provider slipped into its first annual loss in 12 years.
BT Group fell 2.8 per cent after Deutsche Bank downgraded the telecom group’s stock to “sell,” saying it is overvalued.
Chemicals maker Johnson Matthey rose 1.3 per cent, after it entered into a joint agreement with Nano One Materials to develop lithium-ion battery materials. — Reuters
