A weak start to trading in the US, amid suggestions from central banks about a tightening of monetary policy, helped put the FTSE 100 firmly on the back foot on Thursday afternoon.
By the market close, the blue chip benchmark was down 1.1% at 7,012.02 points, with tech names in the US dragging down the Nasdaq index by 0.4% to 14,585.31 as of 4.30pm UK time.
Heavyweight oil firms BP (BP.) and Royal Dutch Shell (RDSB) weighed on the FTSE 100, both energy behemoths ending in the red amid a slump in crude prices as OPEC reached a compromise on increasing production.
Mid-caps were also weaker, the FTSE 250 softening 1.1% to 22,501.25 points as fears over rising inflation weighed on the more domestically focused stocks.
COMPANIES MOVING ON THE MARKET
In corporate news, UK-based cybersecurity firm Avast (AVST) surged 18.1% to 595.6p, topping the FTSE 100 leaderboard, after it said it was in advanced talks over a merger with peer NortonLifeLock.
Also in demand was cyber security play Darktrace (DARK), bid up 3.8% to 599.5p on a robust trading update and raised profit expectations.
Shares in the world’s largest credit data company Experian (EXPN) jumped 2.5% to £30.50 as it raised its annual outlook after posting a 31% jump in its first-quarter revenue.
Online food delivery platform Just Eat Takeaway.com (JET) upgraded its annual outlook on performance, driven by the removal of fee caps in the US and Canada, improved operational performance.
Order growth forecast for 2021 was lifted to more than 45% from previous guidance of more than 42% order growth, with gross transaction value expected to be in a range of €28 billion to €30 billion.
Shares in Just Eat Takeaway.com cheapened 9.1% to £58.37 with investors still showing concerns for longer-run growth amid intense competition.
Online fashion retailer ASOS (ASC:AIM) said it expected annual adjusted profit to be in line with expectations amid continued social restrictions and global supply chain pressures.
For the four months to 30 June 2021, revenue was up 31% to £1.29 billion, with UK revenue rising 60% to £526.4 million. Its share price, however, plummeted by 18% to £38.54.
ELSEWHERE ON THE MARKET
Recruitment company Hays (HAS) upgraded its outlook on profit after reporting a 39% rise in fees in the fourth quarter of its fiscal year following a sharp rebound in permanent placements.
The company said it now expect FY21 operating profit of about £95 million, ahead of market expectations of about £90.9 million, yet the stock reversed 8.6% to 153.3p.
Shopping centre owner Hammerson (HMSO) said rent collection was 68% in in the first half of the year, as footfall trends in all territories remained encouraging. Its share price was down 1.4% to 35.6p.
Gene and cell therapy group Oxford Biomedica (OXB) has named Dr Michael Hayden as a non-executive director, effective from July 15. The shares softened 0.6% to £13.22.
