(Reuters) -Britain’s FTSE 100 was nearly flat on Thursday as advances in defence stocks offset declines in energy and mining shares, while investors assessed the country’s latest GDP figures.
As of 1018 GMT, the blue-chip index was down 0.06%, after three consecutive sessions of gains, while the domestically focused midcap index also declined 0.1%
Investors parsed Wednesday’s British GDP data for the second quarter, which showed the economy slowed less than expected despite U.S. trade tariffs and a weaker jobs market.
Much of the slowdown is due to manufacturers frontloading goods in the previous quarter to avoid tariffs, said George Brown, senior economist at Schroders. “This drag should ease in the third quarter, even against a tougher global trade backdrop,” he said.
“We expect the Bank of England to keep rates on hold for the remainder of the year.”
The energy sector was the main drag on the FTSE 100, down 1.3%
Harbour Energy led the losses, falling 4.5%, while oil majors Shell and BP each fell over 1%.
Industrial metal miners also retreated 1% amid weakness in copper and iron ore prices. [MET/L]
The aerospace and defence index led the gains, up 2.2%.
Among individual stocks, British Gas owner Centrica rose 2.5% after announcing it will jointly buy National Grid’s Grain LNG terminal with U.S.-based Energy Capital Partners for about 1.5 billion pounds ($2.04 billion).
Insurer Aviva jumped 3.5% to a 17-year high after raising its interim dividend and reporting a 22% rise in half-year operating profit, boosting the life-insurer’s index 1.6%.
The non-life insurers index also advanced 1.3%, with Admiral Group rising 4.8% after reporting a 67% jump in half-year pretax profit.
Technical products distributor Diploma fell 3.4% after finance chief Chris Davies stepped down over personal conduct issues.
($1 = 0.7365 pounds)
(Reporting by Ragini Mathur in Bengaluru, additional reporting by Rashika Singh; Editing by Sahal Muhammed)
