FTSE 100 slips as stocks trade ex-dividend; US growth concerns linger

UK's main FTSE 100 stock index inched lower on Thursday as handful of stocks traded ex-dividend, while sentiment remained weak amid concerns over the US economy ahead of crucial jobs data.

The blue-chip FTSE 100 index was down 0.2 per cent, as of 0710 GMT, set to extend losses for the fifth session for the first time since May, if declines hold.

The domestically-focused mid-cap FTSE 250 was flat, after touching a nearly one-month low on Wednesday.

Airways owner IAG, miner Antofagasta, insurers Prudential and Admiral, paper and packaging firm DS Smith and chemicals group Croda fell over 1 per cent each on trading ex-dividend.

Industrial metal miners and chemicals were the worst-hit sectors, while automobiles was the top gainer.

Household goods were also among the best performers as homebuilder Vistry rose 2.3 per cent after plans to buy back shares worth 130 million pounds and posting higher half-year earnings.

Online retailer ASOS jumped 12 per cent after forecasting adjusted core profit at the top end of market expectations, while Associated British Foods fell 3 per cent after the Primark owner's trading update.

Meanwhile, fanning US economic worries were this week's weak manufacturing figures and mixed labour data that bolstered the case for a bigger Federal Reserve rate cut ahead of this month's monetary policy meeting.

All eyes are now on the US ADP National Employment and some Purchasing Managers' Indexes, while euro zone's retail sales and S&P Global PMI for UK will also be parsed throughout the day.

Other major central banks including the Bank of England and the European Central Bank are also set to announce their policy decisions in September.

LSEG data shows market participants expect the ECB to deliver another rate cut, while the BoE is likely to hold rates steady.