London close: Stocks end miserable week in a mixed state

(Sharecast News) - London stocks were mixed at the close on Friday after a session of bargain-hunting, following heavy losses in the previous session as recessionary fears continued to weigh on the mood.

The FTSE 100 ended the session down 0.41% at 7,016.25, and the FTSE 250 was up 1.06% at 18,925.91.

Sterling was in the red, last trading down 1.29% on the dollar at $1.2193, and falling 0.46% against the euro to €1.1651.

"After a brief recovery, stocks are coming off once again," said IG chief market analyst Chris Beauchamp.

"Wall Street opened with some gains, but a reversal now appears to be in play, while in Europe indices are clinging on to gains, but seem likely to succumb.

"Despite another week of inflows to stock markets, indices are unable to make progress on any sustained basis.

"Fresh tightening from central banks, the ongoing withdrawal of stimulus and general caution about the outlook continues to drive investors out of stocks, with no sign of a summer bottom."

Sentiment took a hit overnight on Wednesday after the US Federal Reserve lifted interest rates by 75 basis points - its biggest hike since 1994 - and after the Swiss National Bank surprised markets by increasing rates for the first time in 15 years.

On Thursday, the Bank of England lifted rates by 25 basis points to a 13-year high of 1.25%, although that was less aggressive than the 50 basis points many had started to price in in recent days.

The Bank of Japan bucked the trend on Friday, however by keeping interest rates on hold and maintaining a dovish stance.

As expected, the BOJ voted eight-to-one to keep its short-term interest rate target at -0.1% and maintain its pledge to guide the 10-year government bond yield around 0%.

The Bank also said it would offer to buy unlimited amounts of 10-year government bonds at 0.25% every business day, reiterating guidance given in April.

On the economic front, industrial output in the US expanded more slowly than expected last month as levels of factory activity following three months of strong growth.

According to the Department of Commerce, in seasonally adjusted terms, total factory production grew at a month-on-month pace of 0.2% for annual growth of 5.8%.

Manufacturing output however slipped by 0.1% on the month, offset by increases of 1.3% in mining and of 1.0% in utilities.

In equity markets, heavily-weighted miners were a drag, with Rio Tinto down 4.9%, Antofagasta off 3.89% and Anglo American 2.97% weaker.

Glencore reversed earlier gains to close down 0.6%, having risen in morning trading following an upbeat trading update.

London Stock Exchange Group was down 1.75% and Harbour Energy lost 4.59%, after both booked strong gains earlier in the week.

On Thursday, Harbour Energy rallied after announcing a $200m share buyback programme, while LSE was boosted on Wednesday by an upgrade to 'buy' at UBS.

On the upside, supermarket giant Tesco closed up 0.8% even after it said it was seeing early indications of changing customer behaviour as a result of the cost-of-living crisis and inflationary environment as it reported a fall in first quarter sales.

The company said UK like-for-like sales for the three months to May 28 fell 1.5% to £9.8bn.

On a group basis sales were up 2%, boosted by a strong performance at its Booker division, where revenue rose 19.4% to £2bn.

Future jumped 5.03% after the media company reiterated that it was on track to achieve full-year 2022 guidance.

Playtech rose 3.12% after the gambling software maker said that the UK Takeover Panel had extended the deadline for Asia-based investment group TTB Partners to either announce a firm intention to make an offer or walk away.

It said talks between the two were ongoing, with progress being made.

Elsewhere, Trustpilot rocketed 12.63% after an upbeat trading comment ahead of a capital markets day.

The company said on Thursday that the strength of its business "means we believe we can deliver all of that whilst also achieving adjusted EBITDA breakeven for 2024".

Low-cost carrier Wizz Air ascended 6.66% after falls earlier in the week.

Citi upgraded its recommendation on the airline's shares to 'neutral' from 'sell' on Wednesday, keeping the price target at 2,300p.

Reporting by Josh White at Sharecast.com. Additional reporting by Michele Maatouk, Frank Prenesti and Alexander Bueso.

Market Movers

FTSE 100 (UKX) 7,016.25 -0.41% FTSE 250 (MCX) 18,925.91 1.06% techMARK (TASX) 4,209.11 1.20%

FTSE 100 - Risers

Sage Group (SGE) 621.40p 5.57% Ocado Group (OCDO) 831.00p 5.54% Intermediate Capital Group (ICP) 1,424.00p 3.95% Auto Trader Group (AUTO) 517.00p 3.50% JD Sports Fashion (JD.) 106.45p 3.45% Avast (AVST) 491.40p 3.39% Pershing Square Holdings Ltd NPV (PSH) 2,445.00p 3.38% Coca-Cola HBC AG (CDI) (CCH) 1,830.00p 3.36% Aveva Group (AVV) 2,433.00p 3.31% Scottish Mortgage Inv Trust (SMT) 692.00p 3.19%

FTSE 100 - Fallers

BP (BP.) 379.45p -6.17% Rio Tinto (RIO) 5,177.00p -4.90% Shell (SHEL) 2,044.00p -4.66% Harbour Energy (HBR) 347.00p -4.59% Antofagasta (ANTO) 1,274.00p -3.89% Anglo American (AAL) 3,344.50p -2.97% Ashtead Group (AHT) 3,513.00p -2.42% Fresnillo (FRES) 801.80p -1.91% London Stock Exchange Group (LSEG) 7,130.00p -1.71% Standard Chartered (STAN) 583.20p -1.69%

FTSE 250 - Risers

Trustpilot Group (TRST) 94.05p 12.63% Aston Martin Lagonda Global Holdings (AML) 515.20p 9.92% FDM Group (Holdings) (FDM) 873.00p 7.36% Helios Towers (HTWS) 131.40p 7.35% NB Private Equity Partners Ltd. (NBPE) 1,440.00p 7.06% Wizz Air Holdings (WIZZ) 1,994.50p 6.66% easyJet (EZJ) 437.00p 6.56% Kainos Group (KNOS) 1,025.00p 6.55% Currys (CURY) 74.55p 6.42% TUI AG Reg Shs (DI) (TUI) 152.70p 6.12%

FTSE 250 - Fallers

Diversified Energy Company (DEC) 112.00p -5.72% Energean (ENOG) 1,211.00p -5.17% TBC Bank Group (TBCG) 1,316.00p -3.09% Tullow Oil (TLW) 49.98p -2.76% Crest Nicholson Holdings (CRST) 255.20p -2.60% PureTech Health (PRTC) 147.60p -2.51% Bellway (BWY) 2,130.00p -2.38% JTC (JTC) 605.00p -2.35% Oxford Instruments (OXIG) 2,000.00p -2.32% Wood Group (John) (WG.) 175.75p -2.25%