FTSE 100 hit by economic worries, ex-dividend trades

21 Aug, 2020

LONDON: UK shares ended lower on Thursday after the US Federal Reserve struck a cautious note over the US economic recovery, while several big companies going ex-dividend added to pressure on the bluechip index. The FTSE 100 ended down 1.6%, with insurer Prudential and miner Anglo American among those trading ex-dividend. The midcap index fell 0.5%.

Minutes from the Fed's July 28-29 policy meeting warned of a highly uncertain path for recovery from the global health crisis that has hammered economic growth across the world. Real estate stocks were one of the few sectors that gained on the day, benefiting from safe-haven demand.

On corporate news-driven moves, miner Antofagasta fell more than 5% after reporting a plunge in half-year earnings. Along with Antofagasta's results, a drop in copper prices from a more than one-year high also hit miners, with Glencore, BHP and Rio Tinto falling between 2% and 4%.

Losses in the midcap index were limited by gains in Mike Ashley's Frasers Group along with a number of real estate stocks. Frasers jumped 13% after it forecast growth of up to 30% in its new financial year, while electricals maker AO World added more than 3% as it said demand for its products and services continued even after its rivals reopened stores in July.

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