LONDON (ShareCast) - (Sharecast News) - London markets ended Thursday on a weaker note despite recovering some earlier losses, as concerns over a potential US recession weighed on investor sentiment.

The FTSE 100 closed down by 0.27%, settling at 8,144.97 points, while the more domestically-focused FTSE 250 declined by 0.33% to 20,508.58 points.

In currency markets, sterling was last down 0.4% on the dollar, trading at $1.2743, while it climbed 0.48% against the euro, changing hands at €1.1676.

"Investors are rapidly relearning the lesson that spikes in volatility do not immediately subside after the initial move," said IG chief market analyst Chris Beauchamp.

"Both buyers and sellers this week have had to endure wide swings in price action, which will no doubt come as a surprise after months of quieter trading.

"Stocks seem to have found a low for now, though it is still early days."

Beauchamp added that US weekly jobless claims data could become the datapoint to watch until the next Fed meeting, as investors were searching "anxiously for signs" that that the US is headed towards a recession, or that it would swerve such an outcome.

"This week's data was better than expected, helping the cause of those that will argue last week's payrolls were more a one-off than the beginning of a sustained trend."

Initial jobless claims fall in the US, UK new house buyer enquiries buoyant

In economic news, the US Labor Department reported a decline in unemployment claims for the week ended 3 August.

Initial jobless claims dropped by 17,000 to 230,000, falling short of the 240,000 anticipated by analysts.

The decrease, while easing from a post-Covid peak, still remained higher than the average for the year.

However, continuing claims saw a slight uptick of 6,000, reaching 1.875 million, and the four-week moving average, designed to smooth out fluctuations, rose by 2,500 to 240,750.

Significant decreases in claims were noted in Michigan and Texas, with reductions of 7,401 and 4,814, respectively.

On home shores, the UK housing market showed signs of improvement in July, according to the Royal Institution of Chartered Surveyors (RICS).

The latest UK residential survey indicated a more optimistic outlook, with near-term sales expectations at their highest level in over four years.

It highlighted a 2% increase in new buyer enquiries, reversing a 6% decline from June and marking the first rise in four months.

Sales trends also improved, with the decline in agreed sales slowing to a net 2%, compared to steeper drops in previous months.

Looking ahead, 30% of survey respondents expect sales to increase over the next three months, the strongest sentiment since January 2020.

Despite the optimism, house prices continued to decline, with negative sentiment toward prices persisting across all regions in England.

"The new government's focus on boosting housing development alongside the recent quarter point base rate cut does appear to have shifted the mood music in the sales market, with projections for both near and medium activity picking up," said Simon Rubinsohn, chief economist at RICS.

"Inevitably, significant challenges lie ahead in delivering on the ambitions around planning reform and it is far from clear that the Bank of England will follow the August move with further easing over the coming months.

"Even so, the policy mix is becoming more supportive for the sector."

Spirax tumbles on first-half results, TI Fluid Systems surges

On London's equity markets, Spirax Group saw a sharp decline of 7.44% after reporting first-half pre-tax profits that missed consensus estimates by 10%, citing challenging trading conditions.

Recruiter PageGroup fell by 1.62% after it reported a significant drop in first-half profit, also blaming tough market conditions.

Hill & Smith and Helios Towers lost 1.39% and 4.42%, respectively, following the release of their financial results.

Other notable decliners included Ashtead, Fresnillo, Jupiter Fund Management, and Man Group, which fell 2.37%, 1.93%, 4.56%, and 1.66%, respectively, as they traded without entitlement to upcoming dividends.

On the upside, Beazley surged 10.75% after reporting a record first-half profit of $728.9 million.

Entain rose by 5.08% after the sports betting and gaming company raised its full-year guidance following a stronger-than-expected second quarter.

Housebuilder Persimmon gained 2.79%, despite reporting a decline in first-half pre-tax profit, as it reaffirmed its full-year completion targets at the higher end of its guidance.

Hikma Pharmaceuticals saw an 8.26% increase, boosted by a jump in first-half profit and revenue, along with an upgraded full-year forecast.

TI Fluid Systems jumped 13.57% after the automotive components manufacturer reported interim profits ahead of expectations and expressed confidence in continued earnings margin growth through the 2024 financial year.

Morgan Sindall Group rose 7.03% after the construction company announced that its full-year performance is expected to be "slightly ahead" of prior forecasts following a record first-half performance.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,144.97 -0.27%
FTSE 250 (MCX) 20,508.58 -0.33%
techMARK (TASX) 4,768.75 0.06%

FTSE 100 - Risers

Beazley (BEZ) 705.50p 10.75%
Hikma Pharmaceuticals (HIK) 1,992.00p 8.26%
Entain (ENT) 550.00p 5.08%
CRH (CDI) (CRH) 6,388.00p 4.01%
Persimmon (PSN) 1,581.50p 2.79%
Rightmove (RMV) 532.40p 2.70%
Flutter Entertainment (DI) (FLTR) 14,660.00p 2.20%
GSK (GSK) 1,560.00p 1.63%
Burberry Group (BRBY) 700.60p 1.24%
easyJet (EZJ) 423.30p 1.05%

FTSE 100 - Fallers

Spirax Group (SPX) 7,900.00p -7.44%
United Utilities Group (UU.) 967.80p -4.37%
BT Group (BT.A) 130.45p -4.01%
JD Sports Fashion (JD.) 122.60p -2.66%
WPP (WPP) 687.00p -2.28%
SEGRO (SGRO) 883.00p -1.95%
Fresnillo (FRES) 535.50p -1.93%
NATWEST GROUP (NWG) 328.40p -1.85%
Frasers Group (FRAS) 843.00p -1.69%
Smurfit Westrock (DI) (SWR) 3,120.00p -1.67%

FTSE 250 - Risers

TI Fluid Systems (TIFS) 127.20p 13.57%
Morgan Sindall Group (MGNS) 2,970.00p 7.03%
Harbour Energy (HBR) 294.20p 3.48%
Foresight Solar Fund Limited (FSFL) 87.50p 3.31%
ICG Enterprise Trust (ICGT) 1,278.00p 3.23%
Quilter (QLT) 137.60p 3.15%
Just Group (JUST) 115.40p 2.49%
Derwent London (DLN) 2,332.00p 2.46%
Balfour Beatty (BBY) 405.00p 2.32%
Senior (SNR) 158.20p 2.06%

FTSE 250 - Fallers

Savills (SVS) 1,180.00p -4.99%
Jupiter Fund Management (JUP) 75.50p -4.43%
Helios Towers (HTWS) 116.80p -4.42%
Bytes Technology Group (BYIT) 465.60p -3.72%
Vesuvius (VSVS) 392.00p -3.69%
Wizz Air Holdings (WIZZ) 1,371.00p -3.65%
Renewi (RWI) 646.00p -3.29%
Assura (AGR) 40.70p -3.19%
Alpha Group International (ALPH) 2,345.00p -3.10%
Inchcape (INCH) 787.50p -2.96%

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