UK stocks inched higher on Thursday after a relatively subdued day on financial markets, as hopes continue to rise about an interest-rate cut in the US.
The FTSE 100 finished up 0.3% at 9,720.86, erasing earlier losses following three straight days in the red. Despite recent falls, however, the index has moved broadly sideways since the Autumn Budget last Wednesday.
Helping sentiment in afternoon trade were rising hopes that the Federal Reserve could move to ease monetary policy at its 10 December meeting, following Wednesday’s data from ADP which pointed to ongoing softness in the US labour market.
“After a shaky start to the day, the FTSE 100 has clocked up a modest gain for the day, as it pushes back towards the top end of the week’s range,” said Chris Beauchamp, chief market analyst at IG.
“It has not exactly been a roaring bullish week for the index, instead consolidating as heavyweight news dries up, but hopes of a break higher remain strong. The focus remains firmly on next week’s Fed decision, with a cut now viewed as all but a certainty.”
Back in the UK, a survey showed the construction sector suffered its worst downturn in November for five and a half years in the run-up to the Budget. The S&P Global construction purchasing managers’ index slid to 39.4 from 44.1 in October. This marked the lowest level since May 2020 and was again below the 50.0 level that separates contraction from expansion.
New orders fell to the greatest extent since May 2020. Many construction firms commented on weak client confidence, alongside delayed spending decisions ahead of the Budget, with housing activity, commercial construction and civil engineering all experiencing the fastest downturns in activity for five and a half years.
3i, Burberry and SSP rise
Investment group 3i was up 5% on the FTSE 100 on the same day it announced that its general counsel and company secretary purchased nearly £500,000 in shares. The purchase follows the stock hitting a 52-week low the previous session, following a 30%+ plunge over the past month.
Burberry was on the rise after HSBC lifted its price target on the luxury fashion brand, while drinks group Diageo was being weighed down after UBS slashed its price target.
On the FTSE 250, Upper Crust owner SSP surged 11% after saying it was confident it could deliver towards the upper end of earnings per share expectations. The company also said it was initiating a wide-ranging review of its Continental European Rail business.
Media group Future also shot up as it reported a drop in full-year revenue and profit but announced a five-fold increase to the dividend to 17p a share and a new £30m share buyback programme.
On the downside, Trustpilot tanked 32% after short seller Grizzly Research disclosed a short position in the shares and said it had uncovered “mafia-style” extortion campaigns against non-paying businesses.
Baltic Classifieds tumbled 14% after warning of margin pressures from lower revenue growth and continued investments, while AJ Bell fell 7% as the investment platform underwhelmed with a share buyback of up to £50m and record full-year results.
Market Movers
FTSE 100 (UKX) 9,720.86 0.30%
FTSE 250 (MCX) 22,070.99 0.32%
techMARK (TASX) 5,587.21 0.62%
FTSE 100 – Risers
3i Group (III) 3,153.00p 5.14%
Smurfit Westrock (DI) (SWR) 2,749.00p 3.23%
Burberry Group (BRBY) 1,213.00p 3.01%
Spirax Group (SPX) 6,920.00p 2.98%
JD Sports Fashion (JD.) 80.50p 2.65%
BAE Systems (BA.) 1,687.00p 2.65%
Rolls-Royce Holdings (RR.) 1,091.00p 2.63%
Ashtead Group (AHT) 4,805.00p 2.56%
Antofagasta (ANTO) 2,981.00p 2.55%
ICG (ICG) 2,052.00p 2.40%
FTSE 100 – Fallers
Entain (ENT) 755.20p -3.89%
Diageo (DGE) 1,682.00p -3.89%
Auto Trader Group (AUTO) 608.40p -2.22%
London Stock Exchange Group (LSEG) 8,690.00p -2.01%
Rightmove (RMV) 522.80p -1.80%
Coca-Cola Europacific Partners (DI) (CCEP) 6,830.00p -1.73%
SSE (SSE) 2,189.00p -1.71%
International Consolidated Airlines Group SA (CDI) (IAG) 385.00p -1.51%
Airtel Africa (AAF) 314.20p -1.38%
AstraZeneca (AZN) 13,514.00p -1.31%
FTSE 250 – Risers
SSP Group (SSPG) 164.80p 11.28%
Ocado Group (OCDO) 184.25p 6.94%
Future (FUTR) 638.50p 6.51%
Bodycote (BOY) 676.50p 5.29%
Oxford Instruments (OXIG) 2,130.00p 4.41%
Softcat (SCT) 1,493.00p 3.68%
Discoverie Group (DSCV) 605.00p 3.42%
RS Group (RS1) 618.50p 2.91%
Jupiter Fund Management (JUP) 150.40p 2.73%
Renishaw (RSW) 3,565.00p 2.59%
FTSE 250 – Fallers
Trustpilot Group (TRST) 129.20p -31.89%
Baltic Classifieds Group (BCG) 189.40p -13.71%
AJ Bell (AJB) 488.40p -6.88%
Energean (ENOG) 880.00p -5.17%
Ceres Power Holdings (CWR) 336.80p -4.05%
CMC Markets (CMCX) 281.00p -3.44%
Mitchells & Butlers (MAB) 264.00p -2.94%
Frasers Group (FRAS) 704.00p -2.70%
Raspberry PI Holdings (RPI) 328.80p -2.49%
Spire Healthcare Group (SPI) 181.20p -2.48%