London close: Stocks mixed on GDP reading, trade concerns

(Sharecast News) - London stocks finished Thursday on a mixed note as investors digested weaker-than-expected UK GDP figures and remained cautious over global trade tensions.

The FTSE 100 index rose 0.23% to close at 8,884.92 points, while the FTSE 250 declined 0.2% to 21,386.69 points.

In currency markets, sterling was last up 0.3% on the dollar to trade at $1.3588, while it fell 0.43% against the euro, changing hands at �1.1741.

"Yesterday's consumer price inflation failed to lift markets but the buyers are trying again in the wake of the US PPI data, which has followed a similar pattern," said IG chief market analyst Chris Beauchamp.

"A calmer tone also prevails after last night's mini-panic over fears of an immediate attack on Iran by Israel, though nervousness will persist around this issue for the time being.

"With inflation data out of the way, earnings season wrapped up and a 'no change' from the Fed expected next week, investors would do well to remember the adage 'never short a quiet market'."

Beauchamp said tariff uncertainty had taken a back seat to war fears as the main driver of upside in gold.

"The price is testing the $3,400 area again, a level that has marked the extent of upside over the past two months.

Renewed dollar weakness always helps of course, and since inflation still looks contained there is reason to expect further falls for the greenback ahead of next week's likely-uneventful Fed meeting."

UK economy shrinks more than expected, house prices soften

On the data front, the UK economy shrank more than expected in April, hit by falling exports, softer services activity, and the impact of higher taxes and US trade tariffs.

Official data from the Office for National Statistics showed GDP contracted by 0.3% during the month, following 0.2% growth in March.

Economists had forecast a smaller 0.1% decline.

The services sector, which makes up the bulk of UK output, fell 0.4%, reversing the same-sized gain in the previous month and marking the largest drag on monthly growth.

Industrial production dropped 0.6% after a 0.7% fall in March, while construction provided a rare bright spot, rising 0.9%.

Trade data painted a similarly weak picture.

The value of UK goods exports plunged by �2.7bn in April, the steepest monthly fall on record.

Shipments to the US dropped by �2bn, with the ONS linking the decline to new US import tariffs introduced earlier this year.

"The economy contracted in April, with services and manufacturing both falling," said ONS director of economic statistics Liz McKeown.

"However, over the last three months as a whole GDP still grew, with signs that some activity may have been brought forward from April to earlier in the year.

"Both legal and real estate firms fared badly in April, following a sharp increase in house sales in March when buyers rushed to complete purchases ahead of changes to stamp duty."

Meanwhile, UK house prices continued to soften in May.

A survey by the Royal Institution of Chartered Surveyors showed a price balance of -8, down from -3 in April.

New buyer enquiries fell for a fifth straight month, although expectations for future prices were more upbeat.

RICS welcomed the government's recently announced �49 billion housing investment package, which includes funding for social housing and regeneration via Homes England.

Tarrant Parsons, senior economist at RICS, said sentiment across the market remained "somewhat subdued".

"Ongoing uncertainty around global trade policies and the dampening effect of transactions being brought forward ahead of stamp duty changes at the end of March continue to weigh on buyer activity," he continued.

"Near-term sales expectations are showing signs of stabilisation, suggesting that while muted conditions may persist in the short term, a further deterioration appears unlikely."

Across the Atlantic, US labour market data showed that 248,000 people filed for unemployment benefits in the week ended 7 June, unchanged from the prior week.

Continuing claims rose by 54,000 to 1.95 million, while the insured unemployment rate ticked up to 1.3%.

The figures suggested some softening in the US jobs market, though not yet at alarming levels.

Halma rises on record results, Crest Nicholson climbs

On London's equity markets, Halma climbed 3.77% after the safety equipment specialist delivered record results for the year ended 31 March.

Both revenue and profit rose by double-digit percentages, prompting the company to lift its dividend by 7%.

The strong performance underscored continued demand across its health and safety technology divisions.

Tesco rose 2.28% as the UK's largest supermarket chain reported a 4.6% increase in like-for-like sales for the first quarter.

Growth was recorded across all its markets, and the group reaffirmed its full-year guidance, citing ongoing momentum in food sales and cost control.

Crest Nicholson advanced 4.01% after the housebuilder posted a rise in adjusted half-year earnings and reiterated its full-year outlook.

The company cited easing mortgage rates and improved affordability as supportive factors for the market recovery.

PayPoint shares jumped 4.25% as the payment services provider reported a 1.4% increase in annual revenues and a 10.7% rise in underlying earnings.

Although pre-tax profit fell by 45% to �26.3m due to one-off charges, including legal fees and amortisation, the company said it had made "significant steps" towards its full-year earnings targets.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,884.92 0.23%

FTSE 250 (MCX) 21,386.69 -0.20%

techMARK (TASX) 5,121.33 0.36%

FTSE 100 - Risers

Halma (HLMA) 3,106.00p 3.31%

Hikma Pharmaceuticals (HIK) 2,146.00p 2.68%

BT Group (BT.A) 185.45p 2.57%

BP (BP.) 380.70p 1.90%

Fresnillo (FRES) 1,414.00p 1.87%

GSK (GSK) 1,549.50p 1.74%

Tesco (TSCO) 391.60p 1.64%

Kingfisher (KGF) 277.00p 1.47%

Vodafone Group (VOD) 73.40p 1.44%

Games Workshop Group (GAW) 16,650.00p 1.40%

FTSE 100 - Fallers

easyJet (EZJ) 558.80p -3.82%

JD Sports Fashion (JD.) 77.30p -3.76%

Intermediate Capital Group (ICG) 1,971.00p -3.48%

Mondi (MNDI) 1,184.00p -3.47%

International Consolidated Airlines Group SA (CDI) (IAG) 328.80p -3.15%

InterContinental Hotels Group (IHG) 8,396.00p -2.37%

Smurfit Westrock (DI) (SWR) 3,157.00p -2.26%

Pershing Square Holdings Ltd NPV (PSH) 3,890.00p -2.22%

Beazley (BEZ) 920.50p -2.18%

Whitbread (WTB) 2,830.00p -2.04%

FTSE 250 - Risers

PayPoint (PAY) 793.00p 4.34%

Endeavour Mining (EDV) 2,332.00p 4.29%

ITV (ITV) 82.60p 4.23%

Great Portland Estates (GPE) 356.00p 4.09%

Crest Nicholson Holdings (CRST) 195.90p 4.01%

WH Smith (SMWH) 1,113.00p 3.92%

FirstGroup (FGP) 226.20p 3.86%

Ithaca Energy (ITH) 155.00p 2.92%

Genus (GNS) 2,020.00p 2.85%

Keller Group (KLR) 1,546.00p 2.11%

FTSE 250 - Fallers

Diversified Energy Company (DEC) 1,031.00p -5.84%

Mobico Group (MCG) 26.00p -4.90%

IntegraFin Holding (IHP) 312.00p -4.59%

Auction Technology Group (ATG) 462.00p -4.05%

Carnival (CCL) 1,556.00p -3.62%

Dr. Martens (DOCS) 76.50p -3.47%

SDCL Efficiency Income Trust (SEIT) 47.50p -3.46%

Wizz Air Holdings (WIZZ) 1,185.00p -3.27%

RS Group (RS1) 564.50p -3.01%

Energean (ENOG) 863.00p -2.88%