LONDON (ShareCast) - (Sharecast News) - London stocks ended Wednesday on a mixed note, with investors reacting cautiously to geopolitical developments, particularly US president Donald Trump's looming announcement of reciprocal tariffs.
The FTSE 100 index dipped 0.3% to close at 8,608.48 points, while the FTSE 250 rose 0.3% to 19,649.63 points.

In currency markets, sterling was last up 0.39% on the dollar to trade at $1.3974, while it lost 0.27% against the euro, changing hands at €1.1943.

"UK stocks fell on Wednesday as global markets braced for president Donald Trump's announcement of reciprocal tariffs, heightening fears of an escalating trade conflict that could hinder economic growth," said TickMill market strategy partner Patrick Munnelly.

"Trump is set to reveal sweeping tariffs on global trading partners [later on Wednesday] - an event the White House has dubbed 'Liberation Day', potentially challenging established trade norms.

"Most sectors recorded losses, with aerospace and defence leading the decline, dropping 2.5%."

Munnelly noted that healthcare stocks also took a hit, mirroring European counterparts, as AstraZeneca, GSK, ConvaTec and Hikma Pharmaceuticals all dipped.

"A UK healthcare companies index hit its lowest level in nearly two months, down 2.2%.

"Meanwhile, a survey revealed that pay raises by British employers slowed in the three months leading to February, consistent with official data showing decelerating wage growth.

"This trend suggests the Bank of England may consider lowering borrowing costs later this year."

Supermarket sales growth slows, US private sector employment rises

In economic news, supermarket sales growth in the UK slowed in March, as the delayed timing of Easter and continued consumer caution weighed on spending.

Data from NielsenIQ showed total till sales rose 2.7% in the four weeks to late March, down from 4% in February.

While in-store visits increased by 6.8%, spending per visit dropped by 3.4% to £19.10.

Online sales also lost momentum, with growth slowing to 0.7%.

NielsenIQ attributed the weaker figures to the later Easter holiday and Mother's Day coinciding with the final weekend of March, as well as persistent cost-of-living pressures and a 2.4% annual rise in food inflation.

"Shopping behaviour continues to evolve, with consumers increasingly shopping around for the best prices and offers while looking to stretch budgets ahead of planned rises to essential bills at the start of April," said Mike Watkins, head of retailer and business insight at NIQ.

Among individual grocers, discounters continued to gain ground, accounting for 18.1% of all fast-moving consumer goods sales in the first quarter, the highest level in two years.

Lidl reported a 9.1% rise in sales, lifting its market share to 7.6%, while Aldi saw a 5.4% increase, giving it a 10.5% share.

Market leader Tesco posted a 5% sales gain, maintaining its 25.9% share, and Sainsbury's saw a 4.5% rise.

In contrast, Asda's sales fell 5%, cutting its share to 11.7%, while Morrisons saw only marginal growth of 0.4%.

Online-only retailer Ocado saw sales jump 17.1%, pushing its market share up to 1.9%.

Across the Atlantic, private-sector employment in the US rose more than expected in March, with ADP reporting a gain of 155,000 jobs, up from a revised 84,000 in February and above consensus estimates of 105,000.

The services sector added 132,000 jobs, led by business services, finance, leisure, healthcare, and information.

Meanwhile, the goods-producing sector added 24,000 jobs, driven by manufacturing and construction, while natural resources and mining shed 3,000 positions.

"Despite policy uncertainty and downbeat consumers, the bottom line is this - the March topline number was a good one for the economy and employers of all sizes, if not necessarily all sectors," said ADP chief economist Nela Richardson.

US factory orders meanwhile increased for a second consecutive month in February, according to the Census Bureau.

Orders rose 0.6% to $594bn, slightly above expectations and following a revised 1.8% rise in January.

Durable goods orders climbed 1.0% to $289.4 billion, while non-durable goods rose 0.3% to $304.5 billion.

Meanwhile, US mortgage activity continued to decline, with total applications falling 1.6% in the week ending 28 March.

That marked the third consecutive weekly drop, according to the Mortgage Bankers Association.

While purchase applications rose 1.5% to a nine-week high, refinancing demand fell 5.6%, reaching its lowest level in five weeks.

The average rate on a 30-year fixed mortgage edged down slightly to 6.70%.

Bakkavor rises on Greencore takeover deal, WPP rebounds

On London's equity markets, Bakkavor Group shares jumped 7.54% after the convenience food manufacturer confirmed it had reached an agreement in principle to be acquired by Greencore Group.

The £1.2bn deal followed two prior rejections and would see Bakkavor shareholders receive 85p in cash and 0.604 Greencore shares per Bakkavor share, along with the 2024 final dividend of 4.8p.

Post-merger, Greencore shareholders would hold around 56% of the combined entity, with Bakkavor investors owning 44%.

Greencore Group also edged higher, gaining 0.9% as investors weighed the potential benefits of the proposed tie-up.

WPP rebounded 3% after Tuesday's decline, when Bank of America Merrill Lynch warned of further deterioration in like-for-like revenue growth in the company's upcoming first-quarter results, due 25 April.

Distribution specialist Bunzl rose 3.2% following an upgrade to 'buy' from analysts at Stifel, which helped offset recent underperformance.

Defence and aerospace group Chemring advanced 2.9% after announcing that its Roke unit had secured a £251m contract from the UK Ministry of Defence.

The six-year missile defence deal was described by the company as "strategically important".

Raspberry Pi Holdings climbed 1.53% despite posting a steep fall in full-year profits.

The computing firm, which went public last June, reported a 57% decline in pre-tax profit to $16.3m.

However, the drop in adjusted EBITDA to $37.2m was slightly better than market forecasts.

Revenue dipped 2% to $259.5m amid inventory challenges, which the company said had since been resolved, improving its outlook.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,608.48 -0.30%
FTSE 250 (MCX) 19,649.63 0.30%
techMARK (TASX) 4,604.55 -0.56%

FTSE 100 - Risers

Flutter Entertainment (DI) (FLTR) 17,605.00p 3.44%
Bunzl (BNZL) 3,034.00p 3.20%
WPP (WPP) 577.00p 3.00%
Smurfit Westrock (DI) (SWR) 3,581.00p 2.93%
Marks & Spencer Group (MKS) 365.10p 2.41%
JD Sports Fashion (JD.) 70.94p 2.22%
Associated British Foods (ABF) 1,960.00p 1.71%
CRH (CDI) (CRH) 6,928.00p 1.55%
Whitbread (WTB) 2,495.00p 1.46%
International Consolidated Airlines Group SA (CDI) (IAG) 261.00p 1.40%

FTSE 100 - Fallers

Rolls-Royce Holdings (RR.) 755.80p -3.03%
Vodafone Group (VOD) 70.38p -2.52%
GSK (GSK) 1,433.50p -2.42%
Persimmon (PSN) 1,180.50p -2.32%
British American Tobacco (BATS) 3,120.00p -2.23%
St James's Place (STJ) 946.00p -2.03%
Fresnillo (FRES) 934.50p -1.94%
Taylor Wimpey (TW.) 106.20p -1.94%
Berkeley Group Holdings (The) (BKG) 3,554.00p -1.93%
Melrose Industries (MRO) 473.80p -1.78%

FTSE 250 - Risers

W.A.G Payment Solutions (WPS) 68.20p 12.91%
Bakkavor Group (BAKK) 191.80p 7.87%
Ocado Group (OCDO) 295.10p 5.54%
Deliveroo Class (ROO) 129.30p 4.78%
Dr. Martens (DOCS) 53.00p 3.92%
Moonpig Group (MOON) 220.50p 3.52%
PPHE Hotel Group Ltd (PPH) 1,342.00p 3.07%
Chemring Group (CHG) 390.50p 2.90%
B&M European Value Retail S.A. (DI) (BME) 281.10p 2.70%
Pets at Home Group (PETS) 221.40p 2.59%

FTSE 250 - Fallers

Trustpilot Group (TRST) 216.20p -3.49%
Victrex plc (VCT) 852.00p -3.29%
Vesuvius (VSVS) 384.80p -3.07%
Alpha Group International (ALPH) 2,500.00p -2.91%
Ninety One (N91) 143.20p -2.85%
QinetiQ Group (QQ.) 386.20p -2.77%
Ashmore Group (ASHM) 145.50p -2.68%
Morgan Advanced Materials (MGAM) 198.80p -2.31%
Me Group International (MEGP) 190.20p -2.26%
Coats Group (COA) 77.50p -2.15%

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