* FTSE 100 down 0.8%, FTSE 250 down 0.3%
* Burberry jumps after Q2 results
* 3i drops after H1 report
* FirstGroup marks worst day in more than a year (Adds news items, updates to close)
By Shashwat Awasthi and Muvija M
Nov 14 (Reuters) - London's FTSE 100 underperformed its major global peers on Thursday, suffering its steepest intra-day drop so far this month as falls in private equity company 3i, stocks trading ex-dividend and a stronger pound hammered the exporter-heavy index.
The main index fell 0.8% with 3i Group III.L hitting a five-month low after striking a cautious tone about new investment opportunities and as heavyweight components Sainsbury SBRY.L , Shell RDSa.L RDSb.L and GSK GSK.L traded without dividend entitlement. mid-cap FTSE 250 .FTMC was 0.3% lower, with transport operator FirstGroup FGP.L dropping nearly 20% on its worst day since May 2018 after a bigger first-half loss due to a charge related to its Greyhound bus line business in the U.S.. earners were among the top drags on the main bourse as sterling strengthened on hopes that Conservatives will win a majority in the December election and finally break the deadlock surrounding Britain's departure from the European Union.
Luxury brand Burberry BRBY.L outperformed the index, rising 3.4% as the popularity of designer Riccardo Tisci's collections boosted quarterly sales and offset declines in Hong Kong where trading was hit by ongoing protests. host of trigger points, including weak Chinese factory output data, anxiety around U.S.-China trade, and political uncertainty in the U.S. amid an impeachment inquiry into President Donald Trump also weighed on sentiment globally.
Slowing Chinese factory output growth was another sign of how Beijing's trade dispute with Washington was weighing on demand. To that end, China said the countries were holding in-depth discussions on a "phase one" trade agreement. a deal doesn't go through in the next couple of weeks, the optimism seen in financial markets will rapidly turn into pessimism and I wouldn't be surprised to see a 5-10% correction in equity markets," said Hussein Sayed, Chief Market Strategist at FXTM.
"At this stage, markets are in a wait-and-see mode until further developments emerge."
G4S (CSE: G4S ) GFS.L lost 2.4% after Norway's central bank said the country's wealth fund, the world's largest, can no longer invest in the security services company because of the risk that it contributes to, or is responsible for human rights violations. operator Stobart STOB.L tumbled 5% on the small-cap index after suspending its dividend and posting a bigger first-half loss.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.