London close: Stocks mixed on slew of global data

Stock markets in London ended the trading day with mixed results on Thursday, following a stream of global data and the US Federal Reserve's decision to hold steady on interest rates.

The FTSE 100 rose 0.34% to close at 7,628.26, while the FTSE 250 saw a downturn of 0.71% to end the session at 19,039.41.

Sterling was also painting a mixed picture, last rising 0.78% on the dollar to trade at $1.2763, while it slid 0.12% against the euro to change hands at €1.1677.

“The Fed’s more hawkish talk last night unnerved investors, but by contrast the ECB’s move to boost interest rates has not unduly worried markets,” said IG chief market analyst Chris Beauchamp.

“European markets dropped around the announcement, but rallied off their lows, relieved that the ECB did not strike a more hawkish tone.

“The FTSE 100 has made headway, but below the surface a swathe of UK-focussed firms have seen their share price fall as worries about the Bank of England’s need to tighten further grow stronger.”

ECB hikes rates as expected, US jobs market shows some slack

In economic news, the European Central Bank (ECB) raised its primary interest rates once more, in line with market expectations.

The move comes as a response to enduring inflation levels deemed "too high for too long."

“The governing council is determined to ensure that inflation returns to its 2% medium-term target in a timely manner,” the ECB added in its policy statement.

Elsewhere, the eurozone trade balance took a downturn in April, registering a deficit of €7.1bn, compared to the revised surplus of €14bn recorded in March.

The latest data from Eurostat showed a more significant deficit than the €8.5bn surplus anticipated by analysts.

Across the pond, the US jobs market demonstrated some unexpected slack, as the Department of Labor reported that the number of initial unemployment claims held steady for the week ended 10 June at 262,000.

Economists had projected a decrease to 245,000.

Despite that, American consumers maintained a consistent spending pattern in May, with total US retail sales rising 0.3% month-on-month to reach $686.57bn, against a consensus for a 0.2% drop.

Finally on data, China's economic recovery looked to be on shaky ground as the People's Bank of China lowered its medium-term lending facility rate to 2.65% from 2.75% for the first time in nearly a year.

The move was seen as an effort to spur the economy towards a growth target of 5%.

However, retail sales and industrial production figures in the country came in below expectations, rising 12.7% and 3.5% respectively year-on-year last month, lower than the 18.4% and 5.6% recorded in April.

Halma falls on profit concerns, Asos surges as it reaffirms guidance

On London’s equity markets, Halma’s stock declined 3.42% following its announcement of a decrease in full-year pre-tax profits, despite a 21% surge in revenues and an increase in its dividend.

Melrose Industries was down 2.06% after chief executive officer Simon Peckham sold two million of his shares at 525p each, citing "a change in personal circumstances."

Shares in Land Securities, Intermediate Capital Group, Pets at Home, Computacenter and 3i Infrastructure all experienced downturns as they went ex-dividend.

Intermediate Capital Group recorded the steepest fall with a 6.34% drop, followed by 3i Infrastructure and Pets At Home Group with a decline of 2.82% and 2.63% respectively.

Bunzl's shares dropped 1.48% after it announced that it expected underlying revenue growth for the first half to remain flat, and its group adjusted operating margin to be similar to the first six months of 2022.

Legal & General Group saw its shares slide 2.52% after announcing the appointment of António Simões, former regional head of Europe at Banco Santander, as its new chief executive.

Distilling giant Diageo lost 0.49%, on the back of a rating downgrade from Goldman Sachs.

On the upside, events firm Informa rallied 3.41% after it lifted its full-year profit and revenue outlook following strong performances across all its businesses.

The company said it now expected revenue to surpass pre-Covid levels.

Online fashion retailer Asos rocketed 14.76%, meanwhile, as it celebrated a return to profitability and reaffirmed its full-year guidance.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 7,628.26 0.34%
FTSE 250 (MCX) 19,039.41 -0.71%
techMARK (TASX) 4,562.84 0.07%

FTSE 100 - Risers

Ocado Group (OCDO) 430.00p 5.11%
Informa (INF) 728.40p 3.41%
Reckitt Benckiser Group (RKT) 6,024.00p 2.00%
AstraZeneca (AZN) 11,686.00p 1.53%
Relx plc (REL) 2,619.00p 1.51%
Vodafone Group (VOD) 73.86p 1.40%
Unilever (ULVR) 4,021.00p 1.35%
Standard Chartered (STAN) 679.00p 1.34%
Shell (SHEL) 2,334.50p 1.30%
Imperial Brands (IMB) 1,764.50p 1.26%

FTSE 100 - Fallers

NATWEST GROUP (NWG) 256.20p -3.47%
Halma (HLMA) 2,346.00p -3.42%
Airtel Africa (AAF) 129.40p -3.22%
Legal & General Group (LGEN) 232.00p -2.52%
Barclays (BARC) 153.80p -2.31%
Smurfit Kappa Group (CDI) (SKG) 2,868.00p -2.18%
Frasers Group (FRAS) 684.00p -2.08%
Melrose Industries (MRO) 513.60p -2.06%
Johnson Matthey (JMAT) 1,725.00p -2.02%
Endeavour Mining (EDV) 2,012.00p -1.95%

FTSE 250 - Risers

ASOS (ASC) 376.40p 14.76%
JTC (JTC) 776.50p 7.40%
Games Workshop Group (GAW) 10,510.00p 2.94%
International Distributions Services (IDS) 212.80p 2.75%
Darktrace (DARK) 306.80p 2.27%
Currys (CURY) 51.35p 1.99%
TUI AG Reg Shs (DI) (TUI) 596.50p 1.88%
Telecom Plus (TEP) 1,526.00p 1.73%
Dr. Martens (DOCS) 129.50p 1.57%
Energean (ENOG) 1,119.00p 1.54%

FTSE 250 - Fallers

Intermediate Capital Group (ICP) 1,410.00p -6.34%
Mitchells & Butlers (MAB) 204.80p -4.74%
Synthomer (SYNT) 85.20p -4.70%
Bridgepoint Group (Reg S) (BPT) 207.20p -4.69%
SDCL Energy Efficiency Income Trust (SEIT) 83.30p -4.58%
Bakkavor Group (BAKK) 92.00p -4.37%
LXI Reit (LXI) 94.95p -3.95%
PZ Cussons (PZC) 180.60p -3.42%
Volution Group (FAN) 403.80p -3.40%
Baltic Classifieds Group (BCG) 164.80p -3.06%