UK stocks stabilise a day after selloff on fiscal concerns
The blue-chip FTSE 100 (.FTSE), opens new tab was up 0.6%, while the midcap index (.FTMC), opens new tab gained 1.2%.
Main FTSE stock indexes had declined on Wednesday in a market-wide selloff after Reeves appeared tearful in parliament following a series of U-turns on welfare reforms that blew a hole in her budget plans.
"Some worries remain about the government being backed into a corner and losing its grip on public finances," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
"Investors may still be on alert to fresh opposition to government plans to trim spending, to try and abide by its fiscal rules and keep bond markets onside."
Meanwhile across the Atlantic, traders pared bets on a July rate cut by the U.S. Federal Reserve after data showed the country's labour market remained resilient in June.
In Britain, retail stocks (.FTNMX404010), opens new tab topped the sectoral chart with a 2.2% gain after electricals retailer Currys (CURY.L), opens new tab beat profit estimates on strong demand for mobile and computing products. Currys shares jumped 7.1%, while peer AO World (AO.L), opens new tab was up 1%.
However, Watches of Switzerland (WOSG.L), opens new tab fell 8% and was among the top midcap decliners after the luxury retailer warned of a margin hit due to tariff pressures.
Pharmaceutical stocks (.FTNMX201030), opens new tab were the sectoral losers, declining 1.3%. AstraZeneca (AZN.L), opens new tab fell 1.8% and GSK (GSK.L), opens new tab lost 1.1%.
On the macro-economic front, data from the S&P UK services PMI showed that British services sector activity expanded at the fastest rate in almost a year, while the prices charged rose at the slowest pace in nearly four years.
The Bank of England is closely assessing service sector prices to gauge inflation pressure. Investors widely expect a rate cut in August.
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The Independent
13 minutes ago
- The Independent
Stocks fade as tariff deadline looms large
London's FTSE 100 ended flat as tariff worries kept enthusiasm to a minimum on Friday, while the pound edged slightly lower after a dramatic week in Westminster. The FTSE 100 index lost just 0.29 points at 8,822.91. The FTSE 250 ended down 145.24 points, 0.7%, at 21,557.34, and the AIM All-Share closed down 2.76 points, 0.4%, at 773.49. For the week, the FTSE 100 added 0.3%, though the FTSE 250 shed 0.7%. The AIM All-Share added 0.5%. In European equities on Friday, the CAC 40 in Paris ended down 0.8%, while the DAX 40 in Frankfurt fell 0.6%. US financial markets are closed on Friday for Independence Day. US President Donald Trump said he plans to start sending letters informing trading partners of their tariff rates as soon as Friday, as negotiations to avoid higher US levies enter the final stretch. 'My inclination is to send a letter out and say what tariff they're going to be paying,' he told reporters on Thursday. 'It's just much easier.' He added: 'We're going to be sending some letters out, starting probably (Friday).' IG analyst Chris Beauchamp commented: 'Without interest from US traders European markets have found it hard to sustain the positive momentum seen yesterday. The optimism seen in the wake of payrolls and the passage of Trump's tax bill dissipated as tariff worries resurfaced ahead of next week's deadline, leaving the Dax and others in the red. 'The UK's separation from the EU meant that it was spared any downside today, the index holding on flat for the day. As one of the few countries to have successfully negotiated a 'trade deal' with the US this means UK investors don't have to worry about this problem. Unfortunately, the slow-burn crisis in UK government spending means they will have their hands full anyway.' The pound was down at 1.3640 dollars on Friday in London, from 1.3654 dollars at the equities close on Thursday. The euro stood higher at 1.1780 dollars, against 1.1762 dollars. Against the yen, the dollar was trading higher at 144.53 yen compared to 144.87 yen. Sterling had fallen below the 1.36 dollar mark earlier this week. Sir Keir Starmer said he has a good relationship with Mr Trump because they both 'care about family'. The Prime Minister told the BBC Radio 4 podcast Political Thinking With Nick Robinson it was 'in the national interest' for the two men to connect. He said: 'We are different people and we've got different political backgrounds and leanings, but we do have a good relationship and that comes from a number of places. Sir Keir also backed Rachel Reeves and said she would be chancellor 'for a very long time to come', after the politician was visibly tearful in the House of Commons on Wednesday following a U-turn to welfare reform plans that put an almost £5 billion black hole in her plans. AJ Bell analyst Dan Coatsworth commented: 'After the drama around Rachel Reeves's position as chancellor and a temporary wobble on bond and currency markets earlier this week, there was a welcome period of calm. The 10-year gilt rate is nearly back to the 4.5% level at which it started the week.' Despite the calmer day on bond markets, the interest rate-sensitive housebuilding sector struggled in London. Barratt Redrow fell 2.6%, while Berkeley Group shed 2.4%. A profit warning from MJ Gleeson hurt shares in housebuilders. It warned pre-tax profit in financial 2026 will be at the lower end of current market expectations, its second disappointing trading update in a month. MJ Gleeson said the UK housing market 'lacks confidence and remains subdued and the board does not see a short-term catalyst for any substantial improvement'. 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Telegraph
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Khan ‘dodges questions' about London because he was cooking lunch
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The Sun
15 minutes ago
- The Sun
Former Premier League side release first-of-its-kind kit from sportswear brand part-owned by Harry Kane
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