UK FTSE 100 opens lower after US credit rating surprise downgrade

Aug 2 (Reuters) – Britain’s FTSE 100 opened lower on Wednesday as global risk sentiment took a hit after ratings agency Fitch downgraded the US credit rating, while BAE shares Systems rose after the defense company raised its guidance for the full year.

At 0709 GMT, the bluechip FTSE 100 index (.FTSE) fell 0.8%, hitting a two-week low, while the more country-focused mid-cap FTSE 250 Index (.FTMC) lost 0.6%.

fitch on tuesday degraded US to AA+ from AAA, citing fiscal deterioration over the next three years and repeated debt ceiling negotiations that threaten the government’s ability to pay its bills.

BAE systems (BAES.L) added 4.7% after Britain’s biggest defense firm upgraded its guidance for 2023, forecasting annual earnings per share to grow 10-12%.

London-listed shares of Smurfit Kappa fell 3.0%, after Europe’s largest producer of paper packaging reported a drop in first-half core profit to 1.1 billion euros ($1.21 billion).

ConvaTec Group (CTEC.L) it jumped 4.0% after the tech firm raised its full-year guidance.

Reporting by Shashwat Chauhan in Bangalore; Edited by Rashmi Aich

Our standards: The Thomson Reuters Trust Principles.