London close: Stocks end on mixed note

(Sharecast News) - London stocks finished on a mixed note, underperforming peers on the other side of the Channel and across the Pond. The FTSE 100 was up 0.18% at 8,246.95, but the second-tier index drifted lower by 0.22% to 20,673.41.

Front-dated Brent crude futures added 0.73% to $78.25 a barrel on the ICE.

In the background, there was some 'market chatter' to be heard regarding the improved prospects for two interest rate cuts by the US Fed in 2024, instead of just one.

On that note, Bank of Canada lowered rates on Wednesday, as expected, and was dovish on the prospects for more cuts.

The European Central Bank was expected to follow suit the next day, although here the market consensus for rate cuts had weakened a bit of late.

Back in the UK, the final reading on S&P Global's May UK services PMI business activity index came in at 52.9 (Preliminary: 52.9), the seventh successive month it has been above the neutral 50.0 level. A figure above 50.0 point mark indicates growth while one below it suggests contraction.

However, that reading was down on April's 11-month high of 55.0.

Respondents attributed May's output growth to stronger sales, with new business volumes rising again during the month.

There was also a slight pick-up in both jobs growth and business confidence, while input cost inflation fell to its weakest since February 2021.

Joe Hayes, principal economist at S&P Global Market Intelligence, said: "Taken in tandem, the PMIs imply GDP growth of around 0.3% so far in the second quarter.

"The survey shows prices for UK services rising at the slowest pace for over three years; that's now three months on the trot that selling price inflation in the sector has eased. This will be very encouraging to the Monetary Policy Committee."

In equity markets, Haleon rallied after an initiation at 'buy' at Berenberg, while Taylor Wimpey was boosted by an upgrade to 'buy' from 'hold' by the same outfit.

Pearson got a lift after Citi opened a 90-day "positive catalyst watch" on shares of the education publisher, pointing to an attractive risk/reward.

Paragon Banking surrendered early gains even after the specialist lender more than doubled interim profit and said it would extend its share buyback by up to £50m as customer demand returned after the 'mini-budget' fiasco of Liz Truss's short-lived government last October.

WH Smith gained as the retailer said it remains on track to hit full-year forecasts despite a slowdown in sales growth in third quarter, as strong growth in the travel division was tempered by falling sales on the high street.

On the downside, B&M European Value Retail fell sharply despite saying that said annual operating profits and sales grew in the double digits, helped by the opening of 78 gross new stores across the group, with earnings at the top end of guidance.

British Gas owner Centrica was in the red despite saying that current year trading was in line with expectations against the backdrop of a more "normalised" environment.

Ninety One slumped as it posted a drop in full-year assets under management and cut its dividend as it said business conditions remained "challenging".

Workspace jumped after it reported strong rental income growth in the year to 31 March, although losses widened substantially due to falling property valuations.

Market Movers

FTSE 100 (UKX) 8,246.95 0.18% FTSE 250 (MCX) 20,673.41 -0.22% techMARK (TASX) 4,843.86 0.52%

FTSE 100 - Risers

St James's Place (STJ) 519.50p 3.59% Smith & Nephew (SN.) 1,028.00p 3.30% Rentokil Initial (RTO) 435.00p 2.59% Ocado Group (OCDO) 362.20p 2.40% GSK (GSK) 1,650.50p 2.20% Scottish Mortgage Inv Trust (SMT) 898.60p 2.18% Rightmove (RMV) 557.80p 2.05% Ashtead Group (AHT) 5,560.00p 1.83% Admiral Group (ADM) 2,745.00p 1.70% Pershing Square Holdings Ltd NPV (PSH) 4,164.00p 1.66%

FTSE 100 - Fallers

B&M European Value Retail S.A. (DI) (BME) 506.60p -7.28% Centrica (CNA) 135.40p -4.82% JD Sports Fashion (JD.) 126.30p -4.57% Sainsbury (J) (SBRY) 274.00p -1.65% Lloyds Banking Group (LLOY) 54.74p -1.62% Mondi (MNDI) 1,523.50p -1.46% Next (NXT) 9,320.00p -1.38% Flutter Entertainment (DI) (FLTR) 14,695.00p -1.38% Anglo American (AAL) 2,374.50p -1.21% Frasers Group (FRAS) 887.00p -1.17%

FTSE 250 - Risers

Aston Martin Lagonda Global Holdings (AML) 157.00p 7.02% Workspace Group (WKP) 585.00p 6.17% TUI AG Reg Shs (DI) (TUI) 621.00p 5.53% W.A.G Payment Solutions (WPS) 73.00p 4.58% Mobico Group (MCG) 54.80p 3.89% Trustpilot Group (TRST) 220.00p 3.77% Wood Group (John) (WG.) 186.00p 3.16% Allianz Technology Trust (ATT) 358.00p 3.02% Asia Dragon Trust (DGN) 403.00p 2.54% Oxford Instruments (OXIG) 2,450.00p 2.52%

FTSE 250 - Fallers

Ninety One (N91) 159.60p -6.50% Elementis (ELM) 144.60p -5.24% Ferrexpo (FXPO) 43.35p -4.83% Energean (ENOG) 1,099.00p -4.35% Bakkavor Group (BAKK) 141.00p -4.08% Babcock International Group (BAB) 532.00p -3.88% Chemring Group (CHG) 380.50p -3.55% Investec (INVP) 509.00p -3.23% Jupiter Fund Management (JUP) 80.60p -3.13% Discoverie Group (DSCV) 721.00p -2.83%