Thursday, 10 August: At the open, London shares dived lower for the second day in a row; the FTSE 100 was comparatively lower to other main European bourses as ex-dividends weighed. This is simply the date by which you have to be registered in order to receive the dividend, following this deadline shares typically move to reflect the dividend payment. Throughout the session the index continued to slide and eventually finished 1.51% lower, below the 7,400 mark.
As mentioned, sentiment didn’t change overnight and risk-off prevailed, with precious metals the big winner on the day as well as other safer assets. Of course the situation between the US and N.Korea is the prevailing issue, and after N.Korea announced it still plans for a missile strike near Guam, tensions look like they’re here for the weekend at least.
Oil performed relatively well on the day and it currently sits c.1% higher at $52.75 p/bbl. Further compounding the FTSE to its worst 1-day drop since April was were the weak industrial production figures released today. Production fell by 0.4% overall, with the drop of 3.6% in transport equipment one of the main reasons; car production specifically falling by 6.7%. Construction output also declined 1.3%.
There weren’t many winners on the day but Coca-Cola sat atop the FTSE for practically the whole day, as shares climbed over 9% after a positive earnings update. Worldpay Group shares also climbed (+4.9%) after their merger with US rival Vantiv was completed. The latter is a US based credit card processing company, and they agreed to buy Worldpay for £8bn. The shares will be delisted from the LSE and Vantiv will seek a secondary listing from the NYSE back in London for their new shares.