London close: Stocks mixed after barrage of corporate updates

(Sharecast News) - London stocks ended the day mixed on Tuesday as investors navigated a wave of earnings reports and anticipated upcoming key announcements from the Federal Reserve and the Bank of England.

The FTSE 100 index dipped by 0.22%, closing at 8,274.41 points, while the FTSE 250 rose 0.85%, ending at 21,432.51 points.

In currency markets, sterling was last down 0.26% on the dollar to trade at $1.2829, while it declined 0.14% against the euro, changing hands at €1.1869.

"News from Standard Chartered has helped provide some support to the FTSE 100, but fresh weakness for mining stocks and Diageo's poor results have cast a shadow over the index," said IG chief market analyst Chris Beauchamp.

"The FTSE 100's recent poor performance has seen its mid-cap cousin the FTSE 250 move further ahead, as investors pile back into UK-focused stocks despite the tough times ahead highlighted in the chancellor's statement yesterday."

Beauchamp added that the Nasdaq 100 was still hovering around 19,000, hobbled on Tuesday by "another lurch down" for Nvidia.

"The next three days will likely decide the fate of the index, given the importance of the earnings due out.

"Weakness in US hiring figures did bolster the Dow and small caps however, maintaining some of the recent rotation trade and bolstering hopes that the Fed will cut in September."

UK shop inflation remains steady in July

In economic news, a survey by the British Retail Consortium and NielsenIQ revealed that shop inflation in the UK remained steady in July, with an annual rate of 0.2%, consistent with June and below the three-month average of 0.3%.

Non-food prices continued to decline, albeit at a slower rate of -0.9%, compared to -1.0% in June.

Food inflation eased to 2.3% from 2.5%, and fresh food inflation dropped to 1.4%, the lowest since November 2021.

Weak demand and a poor summer further pushed clothing and footwear prices down for the seventh consecutive month, along with a decline in book prices.

"The 2023 declines in global food commodity prices continued to feed through, helping bring down food inflation rates over the first seven months of 2024," said BRC chief executive Helen Dickinson.

"However this shows signs of reversing, suggesting renewed pressure on food prices in the future."

Sports gatherings for Wimbledon and the Euros benefited from discounted snacking items such as crisps and soft drinks, she added.

On the continent, the eurozone's economic activity surpassed expectations in the second quarter, driven by stronger-than-expected GDP growth in Spain and France, which offset Germany's contraction.

Eurozone GDP grew by 0.3%, consistent with the first quarter and above the 0.2% forecasted by economists.

That marked the second consecutive quarter of expansion after stagnation at the end of the previous year.

However, Germany's GDP fell by 0.1%, contrasting with the previous quarter's 0.2% growth, highlighting the uneven recovery in Europe's largest economy.

Other countries such as Latvia and Austria saw negative or stalled growth, while Spain, France, and Lithuania experienced steady or increased GDP growth.

Additionally, German inflation surprised on the upside in July, with the annual consumer price index rising to 2.3%, up from June's 2.2%.

The increase in inflation came as a surprise, given economists had anticipated no change from the previous month.

Diageo slides, St James's Place skyrockets on cost-cutting plans

On London's equity markets, Diageo saw a significant drop of 5.08% after reporting a decline in full-year organic operating profit, primarily due to weaker performance in Latin America and the Caribbean.

Sage Group fell by 1.43%, despite reiterating its guidance and reporting in-line revenue growth for the first nine months of the year.

Croda International lost 3.14% as it lowered its full-year profit outlook, citing a weaker-than-expected performance in the life sciences segment and ongoing destocking in crop protection and consumer health.

BP reversed earlier gains to edge down by 0.3%.

Although the energy giant reported a second-quarter loss due to $2.77bn in "adjusting items," it surpassed market forecasts on an underlying basis and announced a $1.75bn share buyback programme.

ConvaTec Group dropped by 5.61%, despite confirming its full-year and medium-term guidance.

Glencore declined by 2.54% following a half-year production update that disappointed investors.

Close Brothers Group decreased by 2.86% after the UK financial watchdog considered a compensation scheme for motor finance customers but extended the response deadline for companies.

Bodycote fell by 2.1% as it reported a mixed first-half performance, with organic revenue growing by 1.5% excluding surcharges, while total revenue fell 5% due to lower surcharges and foreign exchange headwinds.

Spectris slipped by 1.6%, announcing a fall in operating profits for the first half of the year amid declines in both sales and operating margins.

On the upside, Standard Chartered surged 5.94%, after the Asia-focused bank announced its largest-ever share buyback and increased its guidance as interim earnings beat estimates.

The company said it would buy back $1.5bn in shares, with pre-tax profit for the first half rising 5% to $3.5bn, surpassing forecasts.

Weir Group rose by 3.37% after reporting a small increase in first-half adjusted profits.

The engineering firm highlighted strong aftermarket demand, though it warned that full-year revenues might miss forecasts.

St James's Place skyrocketed by 24.8% following the announcement of plans to cut costs by £100 million annually by 2027, with anticipated cumulative net savings of nearly £500m through 2030.

Greggs gained 4.97% as the bakery chain raised its interim dividend and reported increased profit and revenue, benefiting from an expanded food and drinks range.

AG Barr increased by 2.22%, with the Irn-Bru maker maintaining its full-year expectations and indicating a rise in first-half revenue compared to the previous year.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,274.41 -0.22% FTSE 250 (MCX) 21,432.51 0.85% techMARK (TASX) 4,792.35 -0.44%

FTSE 100 - Risers

Standard Chartered (STAN) 770.00p 5.94% Burberry Group (BRBY) 760.40p 3.70% Weir Group (WEIR) 2,000.00p 3.63% Admiral Group (ADM) 2,722.00p 2.47% CRH (CDI) (CRH) 6,542.00p 2.44% Beazley (BEZ) 674.00p 2.28% Marks & Spencer Group (MKS) 331.30p 1.81% Next (NXT) 9,034.00p 1.64% LondonMetric Property (LMP) 199.30p 1.48% Reckitt Benckiser Group (RKT) 4,152.00p 1.44%

FTSE 100 - Fallers

Convatec Group (CTEC) 240.80p -5.80% Entain (ENT) 564.00p -5.46% Diageo (DGE) 2,418.00p -5.08% Smurfit Westrock (DI) (SWR) 3,610.00p -3.63% Croda International (CRDA) 3,975.00p -3.14% Anglo American (AAL) 2,273.00p -2.67% Glencore (GLEN) 416.60p -2.54% Lloyds Banking Group (LLOY) 59.70p -2.29% Prudential (PRU) 682.20p -1.98% Mondi (MNDI) 1,521.00p -1.52%

FTSE 250 - Risers

St James's Place (STJ) 697.00p 24.80% Greggs (GRG) 3,082.00p 4.97% Bridgepoint Group (Reg S) (BPT) 290.00p 4.69% Quilter (QLT) 131.80p 3.92% RHI Magnesita N.V. (DI) (RHIM) 3,760.00p 3.33% Lancashire Holdings Limited (LRE) 640.00p 3.23% Cranswick (CWK) 4,705.00p 3.04% Kier Group (KIE) 159.00p 2.98% 4Imprint Group (FOUR) 6,120.00p 2.85% Hays (HAS) 94.90p 2.82%

FTSE 250 - Fallers

Ocado Group (OCDO) 406.50p -6.03% Close Brothers Group (CBG) 509.50p -2.86% Aston Martin Lagonda Global Holdings (AML) 155.10p -2.82% Essentra (ESNT) 161.40p -2.79% Tyman (TYMN) 398.50p -2.69% Auction Technology Group (ATG) 481.50p -2.34% Spirent Communications (SPT) 172.80p -2.32% Bodycote (BOY) 700.00p -2.10% Drax Group (DRX) 631.50p -1.64% Spectris (SXS) 2,954.00p -1.60%