UK Stock Indices Slip on Dividend Revisions; GSK Rallies on Settlement Update
The UK's main stock indices fell on Thursday as some businesses traded without dividend pay-outs, while GSK shares rose following
The UK’s main stock indices fell on Thursday as some businesses traded without dividend pay-outs, while GSK shares rose following the settlement of its cases in the US.
The blue-chip FTSE 100 index (.FTSE) dropped 0.073%, while the mid-cap FTSE 250 (.FTMC) declined 0.55%.
GSK agrees to settle about 80,000 Zantac lawsuits for up to $2.2 bln https://t.co/OuGiswelBH pic.twitter.com/wjWiFiV3RZ
— Reuters (@Reuters) October 9, 2024
As the market opens on Friday, the FTSE 100 index is traded with a decline of 0.093%.
Tesco (TSCO.L), WPP (WPP.L), Taylor Wimpey (TW.L), and Kingfisher (KGF.L) all drove the benchmark index down, falling between 1.4% and 5%, as they traded without right to their most recent dividend pay-out.
GSK PLC (LSE:GSK, NYSE:GSK) remained the top performer on the index after settling thousands of complaints alleging its Zantac medicine caused cancer.
Gains in the drugmaker boosted the broader pharma and biotech (.FTNMX201030) index up 0.8%.
Beazley PLC (LSE:BEZ) was also among the day’s gainers, as analysts predicted that insurers’ losses from Hurricane Milton in the United States would be fewer than previously thought.
Vistry Group PLC (LSE:VTY) continued to be under pressure during the day, as a profit warning issued earlier this week for the next years continued to weigh.
UK Economy Sees August Growth; Household Sector Faces Challenges Amid Market Worries
The UK economy resumed growth in August, according to official figures released on Friday. Britain’s GDP was expected to rise by 0.2% in the month, after flatlining in July and June. The reading was consistent with the estimates of economists surveyed by Reuters.
UK GDP data for August up 0.2% MoM after flat in July. Forward looking indicators are consistent with further growth. Looking at the YoY changes, it is still all services….but likely pick up in construction and industry should balance growth next year #ukeconomy #ukmacro pic.twitter.com/9m46DsGywH
— Kallum Pickering (@KallumPickering) October 11, 2024
Overall, the household goods and home building sector (.FTNMX402020) down 2.5% for the fourth consecutive day, leading falls.
Among other movers, Liontrust Asset Management (LIO.L) slumped 0.20% after the asset manager reported a dip in its third-quarter assets under management and advice (AuMA), hampered by negative market confidence ahead of the new government’s inaugural budget.
Investors were paying closely to new inflation data from the United States, which indicated that the headline rate fell in September as overall price increases eased across the world’s largest economy.
DAX Slips as European Markets Await UK GDP and China Stimulus Announcements
European markets are set to open slightly higher on Friday as investors digest U.K. GDP numbers and prepare for China’s highly anticipated fiscal stimulus.
China’s Ministry of Finance is due to conduct a news conference on Saturday, leaving markets on edge as Beijing is generally expected to disclose more stimulus measures.
IKEA calls for more China stimulus measures https://t.co/sAIsRYy7xc pic.twitter.com/kEbYThSs93
— Reuters (@Reuters) October 10, 2024
Analysts have branded the briefing session as China’s “whatever it takes” moment, with authorities appearing ready to take dramatic measures to resuscitate the country’s struggling economy.
The DAX 30 index fell by 0.076% on Friday morning as the market opened and is traded at 19196.36.
Market confidence weakened following September’s US CPI report, affecting demand for DAX-listed equities.
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