UK’s FTSE 100 opened lower on Thursday after stronger-than-expected US economic data rekindled concerns that interest rates would stay higher for longer, while aerospace supplier Melrose Industries rose on an upbeat profit outlook.
The blue-chip FTSE 100 index fell 0.4% in early trade, while the mid-cap FTSE 250 index slipped 0.3%.
Wall Street’s main indexes tumbled on Wednesday after data showed the US services sector unexpectedly gained steam in August, indicating sticky price pressures.
Further weighing on the exporter-heavy FTSE 100, data showed China’s exports and imports fell in August as the twin pressures of sagging overseas demand and weak consumer spending squeezed businesses in the world’s second-largest economy. Commodity-related stocks fell, with metal miners shedding 1.1% to lead sectoral declines.
Cardboard maker DS Smith and insurers Admiral and Prudential fell between 1% and 1.8% as they traded ex-dividend.
Melrose Industries jumped 7% after the company raised its annual profit expectations on the back of higher-than-anticipated margins at its engines division.