FTSE 100 falls as JD Sports tumbles on profit warning

The UK’s FTSE 100 slipped on Thursday, as JD Sports plunged after issuing a downbeat forecast, while a rebound in government bond yields put pressure on stocks.

The blue-chip FTSE 100 index dipped 0.2% to 10,723.02 points by 1017 GMT, while the midcap FTSE 250 fell 0.3% to 24,575.63 points.

British sportswear and fashion retailer JD Sports tumbled nearly 15%, on track for its biggest percentage drop in nine months, after it cut its profit outlook following a slump in second-quarter sales in its key North American market.

Shares of insurer Legal & General and wealth manager Investec fell 3.6% and 4.5%, respectively, as they traded without entitlement to a dividend payout.

The yield on British 30-year bonds edged up to nearly 5.80% after having fallen to as low as 5.76% on Wednesday following a surprise U.S. Treasury buyback announcement, as worries about inflation and ballooning government debt kept markets nervous.

Meanwhile, oil prices climbed to three-week highs, driven by concerns that the impasse in the Iran war will continue to disrupt supply from the key Middle Eastern producing region.

U.S. President Donald Trump warned of economic consequences against any country that provided “any type of lifeline to Iran.”

Brent crude rose more than 2% to $94, helping lift shares of British energy majors BP and Shell.

Among other UK movers, rail ticketing company Trainline extended its prior day’s losses by 10% following the competition regulator’s probe into ticket pricing.

Ashtead Technology fell 15.4% after the subsea equipment rental and solutions firm forecast annual results below market expectations due to project delays across multiple regions.