London close: Stocks mixed after barrage of corporate updates

London’s stock markets ended Thursday with mixed results, with the top-flight index held aloft by strong earnings reports from major companies like Unilever and Barclays, as investors digested a slew of US data.

The FTSE 100 index rose 0.13%, closing at 8,269.38 points, while the FTSE 250 dipped slightly, shedding 0.19% to settle at 20,790.55 points.

In currency markets, sterling was last up 0.29% on the dollar to trade at $1.2959, while it advanced 0.14% against the euro, changing hands at €1.2001.

“Good news from Unilever and Barclays has driven the FTSE 100 higher today, though uncertainty around next week’s Budget continues to hobble UK assets overall,” said IG chief market analyst Chris Beauchamp.

“The FTSE 100 has spent weeks trying to rally, but to no real effect.

“Just as the US election hangs over Wall Street, so UK investors have decided to sit things out until Rachel Reeves finishes talking next week.”

Beauchamp quipped that Tesla’s earnings were “unsurprisingly” not enough to breathe life into the wider US stock market.

“Instead, we have seen a trimming of gains all day, as the traditional pre-election weak period sets in.

“This should persist at least until the end of the month, and probably until after the election, when history suggests we see stocks resume their march higher.”

UK private sector growth slows ahead of Budget

In economic news, UK private sector growth slowed to an 11-month low in October, according to the latest S&P Global survey.

The composite purchasing managers' index (PMI) fell to 51.7, down from 52.6 in September, in line with market expectations.

A reading above 50.0 signals growth, while anything below indicates contraction.

The services PMI also dropped to 51.8 from 52.4, marking another 11-month low.

The slowdown came just ahead of the UK Budget, adding pressure to the outlook for economic growth.

“Business activity growth has slumped to its lowest for nearly a year in October as gloomy government rhetoric and uncertainty ahead of the Budget has dampened business confidence and spending,” said Chris Williamson, chief business economist at S&P Global Market Intelligence.

“Companies await clarity on government policy, with conflicts in the Middle East and Ukraine, as well as the US elections, adding to the nervousness about the economic outlook.

“The early PMI data are indicative of the economy growing at a meagre 0.1% quarterly rate in October, reflecting a broad-based slowing of business activity, spending and demand across both manufacturing and services.”

Across the Atlantic, US initial unemployment claims for the week ended 19 October fell by 15,000 to 227,000, well below forecasts for 242,000.

That suggested that the US labour market remained robust, despite the Federal Reserve's tight monetary policy.

Continuing claims rose to 1.89 million, the highest level since November 2021, while the four-week moving average ticked up to 238,500, reflecting some underlying labour market volatility.

Meanwhile, US private sector activity exceeded expectations in October, with the S&P Global composite PMI rising to 54.3 from 54.0 in September, indicating solid growth.

Services led the way, with the services PMI increasing to 55.3.

Despite a slight contraction in the manufacturing sector, which recorded a PMI of 47.8, the overall performance underscores resilient economic momentum.

Price pressures eased, as selling prices grew at their slowest rate since May 2020.

S&P Global said that confidence in the outlook over the coming year recovered sharply after a steep decline to a 23-month low in September, “as companies anticipated greater stability and certainty post-election”.

October's optimism hit a 29-month high, with sentiment showing “unusual volatility” as the presidential elections neared.

On the American housing front, US new home sales surged 4.1% in September to an annualised rate of 738,000, the highest since May.

Gains were particularly strong in the Northeast, where sales jumped 21.7%, while the South saw a 5.8% increase.

However, sales fell in the Midwest and remained flat in the West.

Median house prices stood at $426,300, largely unchanged from a year earlier, while the average price dipped slightly to $501,000.

Softcat surges on special dividend, Abrdn sinks on outflows

On London’s equity markets, Anglo American rose 2.88% after the mining giant raised its production guidance for platinum and nickel following a solid third quarter.

London Stock Exchange Group also climbed, by 2.6%, supported by strong third-quarter results, particularly in its subscriptions business.

Barclays gained 4.16%, after the bank raised its net interest income guidance for 2024 and expressed confidence in meeting its financial targets.

Consumer goods leader Unilever advanced 2.94%after reporting a 4.5% increase in underlying sales for the third quarter, surpassing analysts' expectations.

IT infrastructure services provider Softcat soared 10.74%after announcing a special dividend following robust cash generation.

Opioid addiction treatment specialist Indivior was up 5.05% following positive results.

Bloomsbury Publishing surged 8.21%after upgrading its full-year expectations on the back of record first-half profits.

Luxury label Burberry also gained, rising 4.13% on the back of strong third-quarter sales growth at French peer Hermès, which shrugged off the broader slowdown in the luxury market.

On the downside, BAE Systems slipped 1.38% as it traded without dividend entitlement, while Quilter reversed earlier gains, closing down 0.48% despite an upbeat rating from Jefferies.

Abrdn tumbled 11.22% after reporting £3.1bn in third-quarter outflows.

Travis Perkins slumped 4.56% after cutting its full-year profit forecast, while Bunzl fell 1.3% despite reporting revenue growth and reaffirming its guidance.

Inchcape lost 4.72% as the automotive distributor warned that foreign exchange headwinds, particularly the devaluation of the Ethiopian birr, would impact its results.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,269.38 0.13%
FTSE 250 (MCX) 20,790.55 -0.19%
techMARK (TASX) 4,746.67 -0.02%

FTSE 100 - Risers

Barclays (BARC) 246.85p 3.65%
Unilever (ULVR) 4,799.00p 3.14%
Anglo American (AAL) 2,391.00p 2.91%
London Stock Exchange Group (LSEG) 10,615.00p 2.21%
Intermediate Capital Group (ICG) 2,124.00p 1.82%
Standard Chartered (STAN) 856.00p 1.64%
Scottish Mortgage Inv Trust (SMT) 864.00p 1.60%
Entain (ENT) 727.20p 1.42%
NATWEST GROUP (NWG) 360.90p 1.29%
BT Group (BT.A) 144.70p 1.26%

FTSE 100 - Fallers

SSE (SSE) 1,843.50p -2.59%
Schroders (SDR) 354.40p -2.32%
Bunzl (BNZL) 3,490.00p -1.58%
United Utilities Group (UU.) 1,055.00p -1.49%
BAE Systems (BA.) 1,303.50p -1.47%
InterContinental Hotels Group (IHG) 8,452.00p -1.47%
Severn Trent (SVT) 2,645.00p -1.45%
Rolls-Royce Holdings (RR.) 554.00p -1.32%
Croda International (CRDA) 3,734.00p -1.24%
Smurfit Westrock (DI) (SWR) 3,530.00p -1.23%

FTSE 250 - Risers

Softcat (SCT) 1,697.00p 10.77%
Bloomsbury Publishing (BMY) 736.00p 7.92%
Indivior (INDV) 686.50p 5.05%
Spire Healthcare Group (SPI) 230.00p 4.55%
Burberry Group (BRBY) 743.60p 4.44%
Bytes Technology Group (BYIT) 500.50p 4.27%
Trustpilot Group (TRST) 247.00p 4.22%
CMC Markets (CMCX) 329.00p 3.95%
Kainos Group (KNOS) 828.00p 3.64%
Aston Martin Lagonda Global Holdings (AML) 110.30p 2.80%

FTSE 250 - Fallers

Abrdn (ABDN) 146.45p -10.67%
Inchcape (INCH) 722.00p -5.31%
Travis Perkins (TPK) 879.50p -4.61%
Pennon Group (PNN) 569.00p -4.05%
Kier Group (KIE) 143.40p -4.02%
Endeavour Mining (EDV) 1,826.00p -2.51%
Foresight Solar Fund Limited (FSFL) 86.80p -2.47%
RHI Magnesita N.V. (DI) (RHIM) 3,150.00p -2.33%
Morgan Advanced Materials (MGAM) 252.50p -2.13%
Telecom Plus (TEP) 1,750.00p -2.13%