London close: Stocks nudge up as payrolls ease recession fears

(Sharecast News) - London stocks ended just in the black on Friday as the latest US non-farm payrolls eased concerns about a US recession, and as investors continued to mull the impact of Prime Minister Boris Johnson's exit. The FTSE 100 ended a lacklustre session up 0.1% at 7,196.24.

Data out earlier showed there was a 372,000 increase in non-farm payrolls in June, above expectations for a 250,000 jump.

IG market analyst Joshua Mahony said: "The latest US jobs report helped alleviate fears that the widely anticipated recession could begin to hit business investment and hiring decisions. Nevertheless, we have seen some weakness for US markets as better-than-expected payrolls, and stable unemployment/wages strengthen the case for a 75 basis-point hike in three-weeks' time.

"Inflation remains the key concern for the Fed, and the absence of major red flags in the economy serves to raise the likeliness of Fed action to stifle price pressures. As ever, it is the tech-focused Nasdaq that suffers to the greatest degree, with bloated valuations coming into question in the face of surging rates and a potential recession."

On home shores, meanwhile, thoughts turned to Johnson's potential replacement.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said: "Traders will want to know if a new leader is likely to lend support to the idea of further tax hikes. On the other hand, a reduced tax environment may well be expansionary for the economy, but does pose the risk of inflation lingering for longer.

"Either way, it would appear that as Boris shut the door to Number Ten after his speech yesterday, the door also slammed shut on the potential for market panic."

In equity markets, equipment rental firm Ashtead was a high riser after an upgrade to 'overweight' at Morgan Stanley.

JD Sports rallied as it announced that former Morrisons chair Andy Higginson had been appointed chairman.

Oil and gas company Harbour Energy gained as it said that its biggest shareholder, EIG, has distributed some of its stake in the company to investors, reducing its interest from 37% to 16%.

Housebuilder Vistry rose as it said it expects price rises to drive margins above full year targets following a first half driven by strong demand.

On the downside, Marks & Spencer was weaker after a downgrade to 'sell' at Goldman Sachs, while pub group Mitchells & Butlers was knocked lower by a downgrade to 'hold' at HSBC.

Market Movers

FTSE 100 (UKX) 7,196.24 0.10% FTSE 250 (MCX) 18,912.95 0.20% techMARK (TASX) 4,342.42 0.00%

FTSE 100 - Risers

Centrica (CNA) 80.08p 3.12% Ashtead Group (AHT) 3,828.00p 2.85% Coca-Cola HBC AG (CDI) (CCH) 1,848.00p 2.58% Smurfit Kappa Group (CDI) (SKG) 2,780.00p 2.46% St James's Place (STJ) 1,149.00p 2.46% CRH (CDI) (CRH) 2,913.00p 2.45% Airtel Africa (AAF) 147.70p 2.29% JD Sports Fashion (JD.) 125.25p 2.21% Rolls-Royce Holdings (RR.) 87.13p 2.19% Pearson (PSON) 776.60p 2.16%

FTSE 100 - Fallers

Standard Chartered (STAN) 580.40p -2.95% GSK (GSK) 1,754.80p -2.04% HSBC Holdings (HSBA) 525.80p -1.83% Taylor Wimpey (TW.) 112.95p -1.65% Hikma Pharmaceuticals (HIK) 1,697.00p -1.16% Scottish Mortgage Inv Trust (SMT) 792.40p -1.12% Severn Trent (SVT) 2,737.00p -0.98% National Grid (NG.) 1,068.50p -0.88% United Utilities Group (UU.) 1,013.00p -0.88% Prudential (PRU) 1,016.50p -0.88%

FTSE 250 - Risers

Aston Martin Lagonda Global Holdings (AML) 469.30p 10.66% Chrysalis Investments Limited NPV (CHRY) 103.60p 6.91% BH Macro Ltd. GBP Shares (BHMG) 4,535.00p 4.60% Tullow Oil (TLW) 43.90p 4.52% JTC (JTC) 624.00p 4.35% Polymetal International (POLY) 185.00p 3.78% Grafton Group Ut (CDI) (GFTU) 767.60p 3.48% Capital & Counties Properties (CAPC) 150.30p 3.17% TI Fluid Systems (TIFS) 155.40p 3.05% Trainline (TRN) 352.30p 2.89%

FTSE 250 - Fallers

Watches of Switzerland Group (WOSG) 760.00p -5.00% Abrdn Private Equity Opportunities Trust (APEO) 427.00p -3.44% Marks & Spencer Group (MKS) 134.30p -3.17% HICL Infrastructure (HICL) 169.40p -2.87% Discoverie Group (DSCV) 629.00p -2.78% Fidelity China Special Situations (FCSS) 277.50p -2.63% Mitchells & Butlers (MAB) 177.90p -2.63% Biffa (BIFF) 363.40p -2.49% Helios Towers (HTWS) 128.00p -2.44% Elementis (ELM) 100.60p -2.33%