UK’s FTSE 100 fell at open on Thursday driven by declines in defence stocks after BAE Systems slipped, while global sentiment turned cautious after minutes from the US Federal Reserve’s July meeting were perceived to be hawkish.
The blue-chip FTSE 100 was down 0.4% by 0711 GMT, while more domestically focussed FTSE 250 dropped 0.3%.
Shares of BAE Systems fell 3% after the British defence group said it agreed to buy Ball Corp’s aerospace business for about $5.55 billion in cash.
The aerospace and defence sector index dropped 1.7%. Bank of Georgia gained over 11.5%, leading gains among mid-caps, after the company reported higher quarterly pre-tax profit.
The Fed’s July meeting minutes showed policymakers were divided over the need for more interest rate hikes, with “some participants” citing the risks to the economy of pushing rates too far even as “most” policymakers continued to prioritize the battle against inflation.
Precious metal miners fell 0.9% as gold prices touched five-month lows on a stronger dollar and rise in bond yields.
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