Stock prices in London were mostly lower at midday on Thursday, ahead of US jobless figures, while the European Central Bank’s next rate call due next Thursday is getting closer.
‘The FTSE 100’s strong start to 2025 is starting to lose some momentum,’ commented AJ Bell’s Russ Mould, adding: ‘In London, retailers were on the back foot with some recent measures of UK consumer confidence suggesting the Budget and the gloomy rhetoric proceeding it continue to dog the British economy.’
Earlier on Thursday, the British Retail Consortium reported that consumer expectations over the next three months of their personal financial situation dropped to minus 4 in January, while expectations of the state of the economy worsened to minus 34 and personal spending on retail fell to minus 9.
At midday the FTSE 100 index was down 6.28 points, 0.1%, at 8,538.85. The FTSE 250 was down 34.69 points, 0.2%, at 20,545.61, and the AIM All-Share was up 0.76 points, 0.1%, at 721.76.
The Cboe UK 100 was down 0.1% at 856.04, the Cboe UK 250 was down 0.3% at 17,916.60, and the Cboe Small Companies was up 0.9% at 15,911.20.
Weir Group led the FTSE 100, up 2.1%, while Entain at the other end lost 3.9%.
AB Foods was the second-worst performer, down 2.9%.
It said Primark is now targeting low-single digit sales growth in 2025 compared to previous guidance of a mid-single digit rise, after weak trading in the UK.
If Primark is struggling, you know the UK retail sector is in trouble,‘ Mould commented. ’Shoppers remain cautious about spending and reticence over popping a few cheap tops or jumpers in their basket at Primark suggests times are very hard indeed...People might still be visiting its stores but they are being more selective and that’s a problem when the business model is built on shifting high volumes of goods.‘
However, he added: ’It’s situations like now where Primark’s parent company benefits from its conglomerate structure. While the retail arm has been weak, the ingredients arm has come to the rescue and that’s why the share price hasn’t tanked on the update.‘
Sainsbury shares were down 0.5%.
The retailer announced it will cut more than 3,000 jobs and plans to shut its remaining in-store cafes as part of a major overhaul.
The headcount reduction represents about 2% of the company’s current 148,000-strong workforce.
It will see about 20% of senior management roles cut at the supermarket giant as part of plans to focus on fewer, bigger roles and to simplify its head office and management teams.
Sainsbury’s added that it had decided to close its remaining 61 Sainsbury’s Cafes, subject to consultation.
The majority of Sainsbury’s shoppers do not use the cafes regularly, whereas in-store food halls and concessions have grown in popularity, it said.
On the FTSE 250, Spectris continued to lead with a 10% rise.
It expects adjusted operating profit for 2024 to be above consensus and at the upper end of analyst guidance ranges after a ’strong‘ fourth quarter.
CMC at the other end was down 13%.
In a brief trading update, the online trading platform said it remains on track to deliver full-year net operating income in line with previous guidance.
Among small caps, Quantum Blockchain lost 25%.
The cryptocurrency and blockchain-focused investor said it has raised £2.0 million through placing 173.9 million shares at 1.15 pence each.
Empyrean Energy surged up 63%.
The oil and gas developer has completed its acquisition from Apnea Holdings of an option to participate in the Wilson River prospect, a conventional oil exploration project in Australia.
Also, the UK Competition & Markets Authority on Thursday opened investigations into the competitiveness of technology used by California-based technology companies Apple and Alphabet’s Google in mobile devices.
CMA Chief Executive Sarah Cardell said ’more competitive mobile ecosystems could foster new innovations and new opportunities across a range of services that millions of people use‘.
It comes after the CMA last week launched an investigation into Google’s dominant position in the search engine market and its impacts on consumers and businesses.
In European equities on Thursday, the CAC 40 in Paris was up 0.4%, while the DAX 40 in Frankfurt was up 0.3%.
The European Central Bank is expected to cut policy rates by 25 basis points at its January meeting next week.
The pound was quoted higher at $1.2323 at midday on Thursday in London, compared to $1.2317 at the equities close on Wednesday. The euro stood at $1.0414, slightly down against $1.0417. Against the yen, the dollar was trading flat at JP¥156.49.
Stocks in New York were called mixed. The Dow Jones Industrial Average was called up 0.1%, the S&P 500 index down 0.2%, and the Nasdaq Composite down 0.5%.
‘Markets are still in the dark about whether tariffs on a number of parties will be introduced at the beginning of next month or whether they are simply a hardline negotiating tactic,’ commented Mould. ‘It’s a hint of the sort of uncertainty investors may have to get used to under Trump’s presidency.’
Brent oil was quoted higher at $78.68 a barrel at midday in London on Thursday from $78.31 late Wednesday.
Gold was quoted at $2,753.21 an ounce, lower against $2,757.82.
Still to come on Thursday’s economic calendar is the eurozone consumer confidence and US initial jobless claims data.
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