LONDON (ShareCast) - (Sharecast News) - London stocks ended Tuesday on a mixed note as a wave of corporate results kept investors busy and market participants continued to assess the implications of the recent US-EU trade deal.
The FTSE 100 index rose 0.6% to close at 9,136.32, while the FTSE 250 retreated 0.72% to 21,793.07.

In the currency markets, sterling was last down 0.16% on the dollar to trade at $1.3334, while it rose 0.35% against the euro, changing hands at €1.1564 as the single currency continued to weaken.

Analysts attributed the euro's decline to concerns that new US tariffs could dent eurozone growth, with the European Central Bank now seen as less likely to cut rates in the near term.

Russ Mould, investment director at AJ Bell, noted that the FTSE 100 had "enjoyed another good start" thanks to upbeat results from AstraZeneca and Games Workshop.

"It's a busy week for corporate earnings in the UK and US, and investors have plenty of news to digest," he added.

"Gains were recorded across all the major European indices, with investors sitting more comfortably after the US-EU trade agreement at the weekend."

Mortgage market picks up as approvals and lending rise

In economic news, new data from the Bank of England showed that UK mortgage activity improved in June, with net approvals for house purchases rising to 64,200, up from a revised 63,300 in May.

Net mortgage borrowing also rose sharply, increasing to £5.3bn from £2.2bn.

The effective interest rate on new mortgages dropped for the fourth consecutive month to 4.34%, suggesting improving affordability.

Remortgaging activity also ticked up slightly, reaching 41,800 approvals - its highest level since October 2022.

Meanwhile, households increased deposits into ISAs and interest-bearing accounts, pushing total deposits up by £7.8bn.

"Mortgage approvals not only increased for the second consecutive month, but also remained above the 60,000 threshold since March last year," said Stephanie Daley, director of partnerships at Alexander Hall.

"These trends are being supported by changes to loan-to-income caps and the decision to make the Mortgage Guarantee Scheme permanent."

Elsewhere, consumers faced renewed pressure at the tills in July as UK shop prices rose 0.7% year-on-year, according to the British Retail Consortium.

It marked the sixth straight monthly increase in inflation, led by a sharp acceleration in food prices, which jumped 4.0%.

Non-food prices, meanwhile, declined by 1.0%, although the rate of deflation eased from June.

BRC chief executive Helen Dickinson said staples such as meat and tea were "hit the hardest" by supply-driven wholesale price increases.

She urged the government to reconsider tax policies ahead of the next Budget, warning that further hikes would risk "locking in inflation" and raising costs for households.

Across the Atlantic, US consumer confidence rebounded more than expected in July, with the Conference Board's headline index rising to 97.2 from a revised 95.2 in June.

Consumers were more upbeat about future income and business conditions, though the expectations index remained below the recession-warning threshold of 80 for a sixth consecutive month.

Conference Board economist Stephanie Guichard noted that while confidence had stabilised since May, concerns over tariffs and inflation persisted.

"Notably, 18.9% of consumers indicated that jobs were hard to get in July, up from 14.5% in January," she said.

Games Workshop, AstraZeneca, Barclays lead gainers; Inchcape, Croda slump

On London's equity markets, Games Workshop surged 5.44% after the Warhammer maker reported record full-year profits of £262.8m, ahead of its earlier guidance.

AstraZeneca climbed 3.41% as second-quarter earnings topped forecasts, with analysts noting the group's strong pipeline and growing investment in manufacturing.

Russ Mould said AstraZeneca had "reminded the market why it commands a premium rating".

Barclays reversed earlier losses to close up 2.77% after unveiling a £1bn share buyback and posting a 23% rise in half-year profit to £5.2bn.

However, the bank disappointed some investors by not upgrading full-year guidance, despite a trading boost from market volatility.

"That should have been enough to win over the market, but the shares have slipped," said Mould.

Shaftesbury Capital, Morgan Sindall and Entain also made strong gains on the back of positive updates.

On the downside, Inchcape tumbled 11.69% and Croda fell 10.38% following underwhelming results.

Greggs dropped 4.74% after posting a 14% decline in first-half profit, despite maintaining guidance.

Mould said the lack of a trading update for July "left investors wondering if the business has become as stale as a day-old Belgian bun".

Paragon Banking Group and SSP also slid after issuing cautious trading statements, while Unite Group fell 2.74% after its own earnings report.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 9,136.32 0.60%
FTSE 250 (MCX) 21,793.07 -0.72%
techMARK (TASX) 5,272.85 0.62%

FTSE 100 - Risers

Games Workshop Group (GAW) 16,090.00p 5.44%
AstraZeneca (AZN) 11,158.00p 3.41%
Barclays (BARC) 371.20p 2.77%
Rolls-Royce Holdings (RR.) 1,006.00p 2.51%
Fresnillo (FRES) 1,429.00p 2.36%
Convatec Group (CTEC) 244.40p 2.35%
Standard Chartered (STAN) 1,365.50p 2.32%
NATWEST GROUP (NWG) 525.00p 2.02%
British American Tobacco (BATS) 3,934.00p 1.68%
Imperial Brands (IMB) 2,912.00p 1.68%

FTSE 100 - Fallers

Croda International (CRDA) 2,598.00p -10.38%
Rentokil Initial (RTO) 348.10p -3.57%
Glencore (GLEN) 305.90p -3.41%
Unite Group (UTG) 764.50p -2.74%
Whitbread (WTB) 3,108.00p -2.69%
Pershing Square Holdings Ltd NPV (PSH) 4,064.00p -2.40%
WPP (WPP) 415.00p -2.12%
JD Sports Fashion (JD.) 89.06p -1.98%
Mondi (MNDI) 1,168.00p -1.72%
BT Group (BT.A) 207.80p -1.70%

FTSE 250 - Risers

Shaftesbury Capital (SHC) 161.20p 3.47%
Morgan Sindall Group (MGNS) 4,610.00p 3.36%
Volution Group (FAN) 668.00p 3.25%
Avon Technologies (AVON) 2,100.00p 2.94%
Endeavour Mining (EDV) 2,332.00p 2.91%
QinetiQ Group (QQ.) 498.40p 2.85%
IP Group (IPO) 56.00p 2.75%
Diversified Energy Company (DEC) 1,162.00p 2.29%
Keller Group (KLR) 1,354.00p 2.10%
Kier Group (KIE) 198.00p 1.96%

FTSE 250 - Fallers

Inchcape (INCH) 706.50p -11.69%
Paragon Banking Group (PAG) 875.00p -8.09%
SSP Group (SSPG) 168.00p -5.62%
Ocean Wilsons Holdings Ltd. (OCN) 1,185.00p -5.58%
Greggs (GRG) 1,567.00p -4.74%
Oxford Nanopore Technologies (ONT) 204.60p -3.67%
Aston Martin Lagonda Global Holdings (AML) 78.75p -3.67%
IntegraFin Holding (IHP) 356.50p -3.65%
Pagegroup (PAGE) 269.80p -3.44%
Greencoat UK Wind (UKW) 121.20p -3.12%

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