London close: FTSE ends up as investors mull weak payrolls report

(Sharecast News) - London stocks rose on Friday as a weak US non-farm payrolls report made a September rate hike by the Federal Reserve unlikely.

The FTSE 100 closed up 0.3% at 10,901.09, while Brent crude was up 1.2% at $83.49 a barrel and West Texas Intermediate was 1.2% higher at $78.27.

Figures released earlier by the Bureau of Labor Statistics showed the US economy unexpectedly shed jobs in July.

Non-farm payrolls fell by 23,000 following a revised 20,000 increase in June, missing consensus expectations for an 80,000 increase. June's figure was revised down from a 57,000 jump, while May's figure was revised down from a 129,000 gain to a 63,000 increase.

The BLS said employment declined in local government, education and retail trade. Employment continued to trend up in healthcare, however.

Meanwhile, the unemployment rate dipped to 4.1% last month from 4.2% in June, versus expectations for it to be unchanged. Average hourly earnings rose just 2cents, taking the 12-month average to 3.2%, missing expectations for a 3.5% increase.

ING analyst James Knightley said: "Reaction has been significant, with 2Y yields down 8bp and the dollar softening, while Fed funds futures contracts are now only pricing 10bp of a potential 25bp hike on 16 September.

"Today's outcome supports our call for a prolonged pause from the Federal Reserve, but remember that ahead of the September FOMC meeting we have a further jobs report, two inflation prints and the Federal Reserve's Jackson Hole Symposium."

Investors were also keeping an eye on developments in the Middle East following reports that draft terms in an agreement between Iran and Oman over the Strait of Hormuz include Tehran banning US and Israeli ships and requiring compensation from hostile countries before they're allowed to use it.

On home shores, the latest figures from Lloyds showed that house prices were flat in July.

House prices were unchanged on the month, having nudged up 0.2% in June. On the year, prices were just 0.1% firmer in July following 0.7% growth the month before. The average price of a home stood at �299,253, versus �299,396 in June.

Amanda Bryden, Head of Mortgages at Lloyds, said: "Affordability remains a challenge for many would -be buyers and, following recent events in the Middle East, mortgage rates have edged higher again after easing earlier in the summer.

"Sensitivity to borrowing costs is reflected in the latest industry data, which show a modest increase in both mortgage approvals and completed transactions in June following a bigger dip in May. While housing demand remains broadly steady, activity continues to respond quickly to changes in mortgage rates.

"Looking ahead, we expect market activity and house prices to remain relatively stable over the remainder of the year. Developments will be shaped by both how mortgage rates respond to the outlook for inflation and wider household confidence."

Elsewhere, data from the British Retail Consortium showed that footfall fell in July, albeit less than in June, with high streets still the worst performers as the hot weather continued.

The BRC-Sensormatic footfall monitor showed that total footfall declined 2.1%, an improvement on June's 3.4% slump.

Footfall on the high street fell 3.8% in July, having dropped 6.2% in June, while retail parks saw a 1.2% increase, having fallen 0.3% the month before. Footfall at shopping centres was down 1.4% last month following a 2.5% fall in June.

Footfall rose 2.7% in Scotland and 2.6% in Northern Ireland. It was flat in Wales and down 3% in England.

BRC chief executive Helen Dickinson said: "The heatwave continued to bear down on retail footfall in July, with high streets worst affected. London was hit particularly hard as soaring temperatures made tube and train travel less attractive, with some commuters and shoppers opting to stay home. Nonetheless, it was still an improvement on the previous month's figures, when record-breaking sunshine saw footfall fall by an even bigger margin.

"Climate change continues to deliver more and more extreme temperatures in the UK. Retailers are responding by investing in both mitigations - such as more air conditioning and more efficient refrigeration units - and in sustainability initiatives aimed at reducing carbon emissions. Unfortunately, business rates often punish stores for such investments, showing the need for government to look again at this broken system."

In equity markets, precious metals miner Fresnillo and gold miners Pan African Resources, Hochschild and Endeavour all shone as gold and silver prices rose. Pan African was also boosted by an initiation at 'outperform' by RBC Capital Markets.

Diageo continued to fizz higher, having surged on Thursday as investors welcomed the drinks giant's cost-savings plans.

JD Sports Fashion gained as it said Peter Agnefj�ll has been appointed as chair effective from September 2026. He succeeds Darren Shapland, who has served as interim chair since the end of July and will remain on the board as an independent director.

Agnefj�ll spent almost two decades at IKEA Group, rising to president and CEO between 2013 and 2017 and subsequently served as chair of Ahold Delhaize from 2021 to 2025.

On the downside, Oxford Biomedica tumbled as it slashed its full-year revenue and margins forecast citing shortterm client ordering delays, programme deferrals and the laterthanexpected readiness of its Durham, North Carolina facility.

Market Movers

FTSE 100 (UKX) 10,901.09 0.31%

FTSE 250 (MCX) 24,854.86 0.65%

techMARK (TASX) 6,169.15 -0.08%

FTSE 100 - Risers

Fresnillo (FRES) 2,864.00p 4.60%

Diageo (DGE) 1,790.00p 3.32%

Experian (EXPN) 2,897.00p 2.79%

St James's Place (STJ) 1,147.00p 2.64%

Convatec Group (CTEC) 232.40p 2.47%

IG Group Holdings (IGG) 1,343.00p 2.36%

Scottish Mortgage Inv Trust (SMT) 1,396.50p 2.35%

Lion Finance Group (BGEO) 12,440.00p 2.22%

Prudential (PRU) 1,044.50p 2.15%

The Sage Group (SGE) 1,048.50p 2.04%

FTSE 100 - Fallers

Burberry Group (BRBY) 1,164.50p -2.55%

Glencore (GLEN) 557.00p -1.59%

Coca-Cola Europacific Partners (DI) (CCEP) 7,950.00p -1.43%

Computacenter (CCC) 4,828.00p -1.15%

Shell (SHEL) 3,277.50p -1.13%

Barclays (BARC) 516.00p -1.04%

Rentokil Initial (RTO) 360.10p -0.94%

Unilever (ULVR) 4,670.00p -0.83%

International Consolidated Airlines Group SA (CDI) (IAG) 442.40p -0.81%

Airtel Africa (AAF) 329.40p -0.78%

FTSE 250 - Risers

Pan African Resources (PAF) 109.80p 7.54%

Hochschild Mining (HOC) 509.50p 6.15%

Michael Page (PAGE) 194.20p 5.89%

Hays (HAS) 65.95p 5.77%

Oxford Nanopore Technologies (ONT) 124.90p 5.49%

The Schiehallion Fund Limited NPV (MNTN) 2.04p 4.62%

WPP (WPP) 411.40p 4.15%

Endeavour Mining (EDV) 4,046.00p 4.06%

Vesuvius (VSVS) 405.40p 3.95%

Baltic Classifieds Group (BCG) 205.00p 3.80%

FTSE 250 - Fallers

Oxford Biomedica (OXB) 505.00p -14.55%

Clarkson (CKN) 4,840.00p -3.01%

Sirius Real Estate Ltd. (SRE) 99.10p -2.56%

Rosebank Industries NPV (ROSE) 357.00p -1.92%

AEP Plantations (AEP) 176.60p -1.89%

Plus500 Ltd (DI) (PLUS) 3,756.00p -1.83%

4Imprint Group (FOUR) 4,924.00p -1.52%

Neuberger Private Equity Partners Limited (NBPE) 1,476.00p -1.47%

Wizz Air Holdings (WIZZ) 1,095.00p -1.35%

Hikma Pharmaceuticals (HIK) 1,677.00p -1.29%