Growth worries hit FTSE 100; upbeat results power JD Sports

Credit: REUTERS/PETER NICHOLLS

UK blue-chip shares slipped on Tuesday as a second set of disappointing data from China this week added to fears of a global recession, while JD Sports rose to an all-time high on upbeat results.

By Muvija M and Shashwat Awasthi

Sept 10 (Reuters) - UK blue-chip shares slipped on Tuesday as a second set of disappointing data from China this week added to fears of a global recession, while JD Sports rose to an all-time high on upbeat results.

The FTSE 100 index .FTSE dipped 0.2%, having suffered its worst day this month in the last session, while the midcap index was down 0.1% by 0800 GMT.

Investor sentiment took a hit from China data that showed factory prices shrank in August at the sharpest pace in three years due to the prolonged trade war with the United States.

Helping limit losses on the indexes were a 7% rise in blue-chip JD Sports JD.L and a 22% jump in mid-cap Galliford Try GFRD.L.

Shares of the builder rose after it restarted preliminary talks to sell its residential housing businesses to housebuilder Bovis Homes BVS.L. Bovis shares dropped 5.4%.

Meanwhile, sterling hovered at a six-week high it hit on Monday and weighed on AstraZeneca AZN.L and GlaxoSmithKline GSK.L as strength in the local currency meant the value of their U.S. earnings would be lower.

Equipment rental giant Ashtead AHT.L lost 3% despite reporting a rise in earnings. Other industrials Rentokil RTO.L and Spirax-Sarco SPX.L also gave up 2%.

"The results appear to have ticked all the boxes and not raised any major concerns. Expectations were high heading into the event though, so we may just be seeing a little profit taking on the results," Oanda analyst Craig Erlam said.

Oil heavyweights Shell RDSa.L and BP BP.L advanced as crude prices were on a five-day winning streak on hopes that the OPEC and other oil producing countries may agree to extend output cuts to prop up prices. O/R

Barclays BARC.L also rose 3.3%. The lender said it would set aside between 1.2 billion pounds and 1.6 billion pounds more to settle Britain's costliest consumer banking scandal, the mis-selling of payment protection insurance.

FTSE 250 constituent Cairn Energy CNE.L rose 7% as strong half-year results led to a production target upgrade.

Among small-caps, online gambling 888 Holdings 888.L slumped 10.6% after results showed a hit to earnings from a rise in online gaming taxes and administrative expenses due to Brexit preparations.

(Reporting by Muvija M in Bengaluru; Editing by Bernard Orr and Arun Koyyur)

((muvija.m@tr.com; within UK +44 20 7542 1810, outside UK +91 80 6749 3638;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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