13th Aug 2026 12:10
(Alliance News) - London's FTSE 100 was lower on Thursday, underperforming against European peers as index heavyweights went ex-dividend.
The FTSE 100 index traded down 23.20 points, 0.2%, at 10,809.95. The FTSE 250 rose 70.50 points, 0.3%, at 24,885.38. The AIM all-share was down 0.54 of a point, 0.1%, at 803.39.
The Cboe UK 100 was down 0.2% at 1,073.53, the Cboe UK 250 was up 0.5% at 21,673.70, and the Cboe small companies was down 0.5% at 19,024.81.
The mood in mainland Europe was more upbeat, with sentiment boosted by dwindling Federal Reserve interest rate hike expectations.
In European equities on Thursday, the CAC 40 in Paris was up 0.2%, while the DAX 40 in Frankfurt was up 0.5%.
"Easing US inflation which came bang in line with expectations has helped soothe fears about an imminent rate hike from the Federal Reserve," AJ Bell analyst Russ Mould commented.
US consumer price inflation data for July was in-line with expectations, numbers on Wednesday showed, strengthening the case for a rate hold next month, though numbers for August could swing the pendulum back in favour of a hike.
The Fed's next rate decision is on September 16. According to the CME FedWatch Tool, there is a 64% chance it leaves rates unmoved. Ahead of the decision, there is the August consumer price index reading on September 11, which could move the dial again. A week ago, the odds of a hold stood at 45%. A month ago, they stood at 25%.
The Bureau of Labor Statistics said US consumer prices rose 3.4% on-year in July, abating from a 3.5% increase in June. The reading was in line with consensus cited by FXStreet.
US producer price data is released at 1330 BST. Numbers are expected to show the annual rate of producer price inflation eased to 4.9% in July from 5.5% in June.
Sterling fell to USD1.3493 on Thursday afternoon, from USD1.3507 at the time of the London equities close on Wednesday. Versus the euro, it was weaker at EUR1.1692 from EUR1.1704.
The euro bought USD1.1536, down slightly from USD1.1539 at the time of the London equities close on Wednesday. Against the yen, the buck rose to JPY159.34 from JPY159.24.
The yield on the US 10-year Treasury was steady at 4.67%, where it stood at the time of the London equities close on Wednesday. The yield on the US 30-year Treasury was unmoved at 5.23%.
In New York, the Dow Jones Industrial Average and S&P 500 are called to open 0.2% higher, while the Nasdaq Composite is called to open up 0.1%.
The Nasdaq Composite had shot up 0.5% on Wednesday, as tech shares cheered the cooler US inflation data. Among those to surge on Wednesday, SpaceX rose 9.7% to close at USD146.15, back above its USD135 initial public offering price.
Baillie Gifford US Growth Trust and Scottish Mortgage Investment Trust were up 2.6% and 1.9% in London. SpaceX is among their investees.
Gold traded at USD4,385.71 an ounce on Thursday afternoon, down from USD4,422.11 at the time of the closing bell on the London Stock Exchange on Wednesday. A barrel of Brent was lower at USD87.63 from USD88.88.
A senior Iranian official said on Thursday that the Strait of Hormuz remains under the control of the Islamic republic after President Donald Trump claimed US control over the strategic waterway.
"Today, you see that the Strait of Hormuz is under the management and control of the Islamic republic, and our country continues on its path in complete security," said Hossein Taeb, head of the paramilitary Basij forces affiliated with Iran's Revolutionary Guards, according to state television.
In London, gold miners and oil majors fell.
BP and Shell were down 1.8% and 1.1%, as the duo went ex-dividend.
Fresnillo declined 3.5%, the precious metal miner also going ex-dividend.
Heaping more pressure on the FTSE 100, shares in Rio Tinto, GSK and NatWest also went ex-dividend. Drugmaker GSK lost 0.6% and lender NatWest was down 0.9%.
Miner Rio Tinto shed 4.6%. The miner welcomed an agreement announced between Tomago Aluminium, the Australian federal government, and the New South Wales state government which secures "the long-term future of Australia's largest aluminium smelter". Rio owns just under 52% of Tomago, located in the Hunter region in New South Wales.
Tomago Aluminium will enter a 10‑year power purchase agreement beginning after its current contract with AGL Energy expires in December 2028, with electricity to be supplied from 100% renewable sources from 2033. Tomago Aluminium will invest AUD1.1 billion, approximately USD776.9 million, in the smelter between now and 2038, including AUD100 million for decarbonisation initiatives.
In addition, Tim Ayres, minister for Industry & Innovation in Australia, said in an ABC Radio National interview that there is an AUD2.5 billion package, funded by state and federal governments, that "secures this vital aluminium asset for Australia".
Ayres said in the interview: "The big challenge for Tomago Aluminium has been that coal fired power is too expensive. The owners of the facility have made that clear not just privately to us, but publicly to the workforce here and to the Australian people.
"It's a AUD2.5 billion commitment. We are backing that in a full-throated way. This is a government with the largest pro-manufacturing policy platform in Australian history."
Copper miner Antofagasta reported improved half-year earnings, but it trimmed its output view. The stock fell 5.1%, the worst large-cap performer.
It now expects copper output in the range of 625,000 to 655,000 tonnes for the whole of 2026, its outlook cut from 650,000-700,000 tonnes. Los Pelambres has resumed operations after "extraordinarily severe weather conditions in Chile", the miner said.
"While there has been no material impact on key equipment and infrastructure, detailed inspections have identified the need for repairs to certain pipeline platforms and water management systems," it added.
Savills surged 9.3%. The London-based real estate services provider said pretax profit fell 56% to GBP7.0 million in the six months that ended June 30 from GBP15.8 million a year prior. However, underlying pretax profit, which strips out acquisition costs, improved 47% to GBP34.3 million from GBP23.3 million.
Revenue rose 8.7% to GBP1.23 billion in the first half of 2026, from GBP1.13 billion a year ago.
Secure Trust Bank added 1.5%. The business and consumer lender reported a rise in half-year profit, and it has left its guidance unchanged. Secure Trust said pretax profit in the first half of 2026 rose 41% to GBP31.4 million from GBP22.3 million a year prior, with operating income down 21% to GBP83.8 million from GBP106.3 million a year prior.
"I am pleased with the group's growth in lending, profits and returns in the first half of 2026, which already reflects strong execution against our plans and reinforces confidence in our medium-term targets. The actions we have taken to reposition the group for sustainable growth and improved returns are delivering results and strengthening our ability to serve customers better and create long-term value for shareholders," CEO Ian Corfield said.
Secure Trust has upped its interim dividend by 5.1% to 12.4p per share from 11.8p.
By Eric Cunha, Alliance News news editor
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