London close: Stocks flat after mixed economic data

London stocks were essentially unchanged at the closing bell on Friday as traders assessed mixed economic data and awaited a speech from Federal Reserve chair Janet Yellen.

UK consumer confidence improved in May, according to a survey. GfK’s consumer confidence index improved to -1 in May from -3 a month earlier, beating estimates for a reading of -4.

“It is a relief that consumer confidence was a little firmer in May following April’s drop to a 16-month low, but the suspicion is that consumers will be cautious in their spending amid heightened uncertainty in the run-up to the 23 June referendum on UK membership of the European Union,” said Howard Archer, chief UK and European economist at IHS Global Insight.

At the same time, a declaration at the G7 meeting in Japan said a vote by the UK to leave the EU would pose a "serious threat to global growth".

The group warned in its final statement that Brexit would reverse the trend of increased global trade, investment and jobs.

In the US, the Commerce Department’s second estimate of first quarter gross domestic product was for a 0.8% rise at a seasonally-adjusted rate, up from the initial estimate of 0.5% but a touch below expectations of 0.9%.

Meanwhile, consumer spending was up 1.9%, in line with the initial estimate and outlays on new home construction rose at a rate of 17.1% compared to an initial estimate of 14.8%.

Pantheon Macroeconomics said: “Overall, these data don't materially change our view that second quarter growth will be 3% or better, and they don't fix the very long running statistical problem which tends to depress first quarter GDP growth relative to the trend.

Consumer sentiment in the US improved less than expected in May, according to the final reading from the University of Michigan.

The University of Michigan’s consumer sentiment index printed at 94.7, down from the initial estimate of 95.8 but above the April reading of 89.0 and the May 2015 reading of 90.7.

Federal Reserve chair Janet Yellen was due to give a speech in Harvard, which investors will be scrutinising for any further clues on the timing of the next interest rate hike.

In commodities, oil prices were under the cosh as supply glut concerns persisted. Brent crude fell 0.52% to $49.33 per barrel and West Texas Intermediate dropped 0.24% to $49.36 per barrel at 1654 BST.

On the corporate front, Carnival was also on the front foot, having slumped in the previous session as it went ex-dividend.

United Utilities bounced back after falling on Thursday, when it reported a big drop in full-year underlying profits following the introduction of new regulated price controls and because of the expected increase in depreciation and other costs.

On the downside, outsourcer Capita was lower after Exane BNP Paribas downgraded the stock 'underperform' from 'neutral'.

Dublin-based pharmaceuticals group Shire was weaker after it announced that 93.8% of its shareholders voted in favour of its $32bn merger with US-based Baxalta Inc.

Market Movers

FTSE 100 (UKX) 6,264.77 -0.01%
FTSE 250 (MCX) 17,206.33 0.08%
techMARK (TASX) 3,117.97 -0.11%

FTSE 100 - Risers

Royal Mail (RMG) 532.50p 2.01%
Carnival (CCL) 3,438.00p 1.75%
3i Group (III) 552.00p 1.66%
Next (NXT) 5,535.00p 1.65%
Hammerson (HMSO) 588.00p 1.47%
United Utilities Group (UU.) 969.00p 1.47%
Burberry Group (BRBY) 1,097.00p 1.39%
easyJet (EZJ) 1,551.00p 1.24%
Kingfisher (KGF) 375.10p 1.13%
InterContinental Hotels Group (IHG) 2,667.00p 1.10%

FTSE 100 - Fallers

Anglo American (AAL) 612.00p -2.73%
Antofagasta (ANTO) 436.60p -2.52%
Randgold Resources Ltd. (RRS) 5,735.00p -2.05%
Capita (CPI) 1,076.00p -2.00%
Rolls-Royce Holdings (RR.) 614.50p -1.76%
Fresnillo (FRES) 1,017.00p -1.45%
BHP Billiton (BLT) 840.30p -1.35%
DCC (DCC) 6,260.00p -1.34%
Berkeley Group Holdings (The) (BKG) 3,330.00p -1.33%
Standard Chartered (STAN) 542.00p -1.31%

FTSE 250 - Risers

Synthomer (SYNT) 361.90p 5.14%
B&M European Value Retail S.A. (DI) (BME) 304.90p 4.88%
PayPoint (PAY) 950.50p 4.85%
Softcat (SCT) 343.50p 4.25%
Serco Group (SRP) 107.90p 3.75%
Phoenix Group Holdings (DI) (PHNX) 879.50p 3.53%
OneSavings Bank (OSB) 331.60p 3.08%
esure Group (ESUR) 284.40p 2.97%
Rank Group (RNK) 254.80p 2.82%
Marshalls (MSLH) 330.30p 2.10%

FTSE 250 - Fallers

Acacia Mining (ACA) 309.40p -4.71%
Centamin (DI) (CEY) 95.55p -4.45%
Sophos Group (SOPH) 217.80p -3.29%
Clarkson (CKN) 2,311.00p -3.22%
Kaz Minerals (KAZ) 150.60p -2.40%
Amec Foster Wheeler (AMFW) 442.70p -2.08%
Rotork (ROR) 195.50p -2.05%
Diploma (DPLM) 741.50p -1.98%
Tullow Oil (TLW) 237.50p -1.94%
UDG Healthcare Public Limited Company (UDG) 601.00p -1.80%