London close: Stocks rise but weak US data dampens gains

UK stocks rose on Wednesday but upside was only modest after data showed that American retail sales growth slowed to a standstill last month.

The FTSE 100 finished 0.23% higher at 6,949.63, but settled firmly below the intraday high of 6,989.91.

Shares extended gains in morning trade after the Bank of England scaled back its GDP and wage growth forecasts in its inflation report, prompting economists to scale back their predictions for the first rate hike.

However, markets dipped into the red following a shaky start on Wall Street after the US Commerce Department said US retail sales flatlined in April. This compared with a 1.1% jump in March and the 0.2% increase analysts had expected.

"Investors were initially buoyed by the rate-hike delaying power of this retail miss, leading the US markets to slender gains, until disappointment set in," said Spreadex analyst Connor Campbell.

Economic data elsewhere came in broadly mixed on Wednesday, with UK unemployment dropping to a seven-year low, French economic growth beating forecasts and German expansion figures weaker than expected.

Meanwhile, a host of economic indicators overnight from China disappointed, with growth in fixed asset investment, industrial production and retail sales all coming in weaker than anticipated. Analysts said the data raised hopes for further easing measures from the People's Bank of China after last week's interest-rate cut.

Mondi, Barratt and SABMiller impress

Paper and packaging giant Mondi said profits rose 29% in the first quarter on the back of higher volumes and lower costs across Europe, causing shares to set a new all-time high on Wednesday.

Housebuilder Barratt Developments was higher as it raised expectations for housing completions and profits for the full year, giving others in the sector such as Persimmon and Taylor Wimpey a boost.

Full-year profits from brewer SABMiller were higher than market expectations as China returned to growth during the last three months of the year. Adjusted profits were down a less-than-expected 1%.

Catering company Compass Group was in the red despite saying its full-year guidance remains “positive and unchanged” as it reported an increase in first-half earnings.

Admiral was also weaker on the news that chief executive of the motor insurer, Henry Engelhardt, is stepping down in a year’s time.

Mining stocks finished mostly lower, though rising gold prices on a weaker dollar lifted shares of precious metal producers Fresnillo, Randgold, Acacia Mining and Centamin.

Market Movers
techMARK 3,236.38 +0.43%
FTSE 100 6,949.63 +0.23%
FTSE 250 17,861.53 +0.97%

FTSE 100 - Risers
Mondi (MNDI) 1,414.00p +8.94%
Fresnillo (FRES) 749.50p +5.05%
Persimmon (PSN) 1,820.00p +4.12%
Barratt Developments (BDEV) 564.00p +3.39%
Randgold Resources Ltd. (RRS) 4,881.00p +2.95%
Ashtead Group (AHT) 1,171.00p +2.81%
Taylor Wimpey (TW.) 182.30p +2.42%
Dixons Carphone (DC.) 460.10p +2.11%
SABMiller (SAB) 3,576.00p +2.10%
Aberdeen Asset Management (ADN) 443.60p +2.09%

FTSE 100 - Fallers
Compass Group (CPG) 1,119.00p -3.78%
TUI AG Reg Shs (DI) (TUI) 1,207.00p -3.67%
Morrison (Wm) Supermarkets (MRW) 176.90p -2.37%
Admiral Group (ADM) 1,452.00p -1.56%
Aggreko (AGK) 1,624.00p -1.46%
Sainsbury (J) (SBRY) 275.50p -1.25%
Tesco (TSCO) 224.70p -1.21%
Smith & Nephew (SN.) 1,112.00p -1.07%
HSBC Holdings (HSBA) 614.00p -0.97%
National Grid (NG.) 882.10p -0.95%

FTSE 250 - Risers
Acacia Mining (ACA) 304.00p +6.00%
Centamin (DI) (CEY) 65.90p +5.52%
Ted Baker (TED) 2,872.00p +5.28%
Petrofac Ltd. (PFC) 892.00p +4.69%
Countrywide (CWD) 579.50p +4.41%
Crest Nicholson Holdings (CRST) 479.90p +4.33%
Premier Oil (PMO) 187.50p +3.88%
AL Noor Hospitals Group (ANH) 850.00p +3.79%
Just Eat (JE.) 458.50p +3.73%
NMC Health (NMC) 875.00p +3.61%

FTSE 250 - Fallers
Man Group (EMG) 169.50p -3.86%
Mitie Group (MTO) 292.30p -2.53%
Jardine Lloyd Thompson Group (JLT) 1,021.00p -2.02%
Grafton Group Units (GFTU) 805.00p -1.95%
Rank Group (RNK) 199.70p -1.72%
Enterprise Inns (ETI) 134.20p -1.32%
Pets at Home Group (PETS) 266.60p -1.15%
Nostrum Oil & Gas (NOG) 591.00p -1.09%
Zoopla Property Group (WI) (ZPLA) 216.00p -1.05%
Booker Group (BOK) 146.70p -1.01%