Precious metals miners dropped 2%, despite a gold price uptick, with Fresnillo suffering from ex-dividend trading. Big names like AstraZeneca, BP, Natwest, and Standard Chartered also weighed down the indices by trading without dividend entitlements. Bank shares fell by 1.4% after two days of gains, and most sub-sectors saw declines. But Beazley soared 10% with an upgraded forecast and nearly doubled its first-half pre-tax profit to $728.9 million. The automobile sector bucked the trend, gaining 2.5%, led by TFI Fluid Systems' 11% rise post robust half-year results. Entain and Hikma Pharmaceuticals also jumped by 7.2% and 8.1%, respectively, after raising their yearly forecasts.

The FTSE indices were pressured by ex-dividend trades, notably affecting stocks like AstraZeneca and BP. Negative market sentiment further pushed the indices down. Investors should monitor upcoming dividend schedules and market mood to navigate potential risks and opportunities.

The bigger picture: UK's economic slowdown could prompt rate cuts.

The UK's job market is cooling, with slower wage growth in July. This trend will be key for the Bank of England as it considers future interest rate cuts. Slower pay increases might ease inflationary pressures, potentially leading to a more favorable borrowing environment soon.