LONDON (ShareCast) - (Sharecast News) - London stocks closed lower on Friday, as investors digested a mix of economic signals, including a surprise rise in US consumer inflation and fresh domestic data.
The FTSE 100 index slipped 0.08% to 8,658.85 points, while the more domestically-focussed FTSE 250 fell 0.25% to 19,864.98 points.

In currency markets, sterling was last down 0.12% on the dollar to trade at $1.2934, as it slipped 0.26% against the euro, changing hands at €1.1957.

"US stocks are at a one week low, oil is down, gold is up and volatility is surging," said IG chief market analyst Chris Beauchamp.

"This is a classic risk-off move that shows how fragile sentiment remains.

"After a few days of calm on the tariff front, Trump's auto tariffs have really spooked investors, who are once again slashing equity exposure."

Beauchamp noted that small caps and tech were leading the way lower on Wall Street, as mid-March's risk rebound fizzled out.

"Markets find themselves in a bit of a macro lull in the early part of next week, but Tariff Day on 2 April promises to more than make up for a sleepy end to the first quarter.

"Added to that is Friday's payroll reading, where the first signs of the government layoffs may start to emerge.

"Given Donald and Elon have barely begun their mission to cut the Federal workforce, next week's payrolls look to be just the start, fuelling worries about the US economy."

Core consumer inflation rises stateside, UK economy performs stronger than though in 2024

In economic news, core personal consumption expenditures (PCE) inflation rose unexpectedly in the US in February, adding to concerns about the persistence of underlying price pressures.

Core PCE, which excludes food and energy, climbed to 2.8% year-on-year, up from 2.7% in January and surpassing forecasts for no change.

On a monthly basis, the index rose 0.4%, ahead of expectations and up from January's 0.3%.

Headline PCE inflation remained stable at 0.3% month-on-month and 2.5% annually, both in line with forecasts.

Personal income increased by 0.8%, the fastest monthly growth since January 2024 and well above the 0.4% consensus, while personal spending rebounded by 0.4% but missed estimates for a 0.5% rise.

Meanwhile, US consumer sentiment fell to its lowest level since November 2022, according to the University of Michigan's final March reading.

The headline index dropped to 57.0 from an initial estimate of 57.9, marking a third consecutive monthly decline.

Consumers' expectations for the future fell sharply, and the assessment of current conditions also weakened.

"This month's decline reflects a clear consensus across all demographic and political affiliations; Republicans joined independents and Democrats in expressing worsening expectations since February for their personal finances, business conditions, unemployment, and inflation," said Joanne Hsu, director of the university's surveys of consumers.

"Consumers continue to worry about the potential for pain amid ongoing economic policy developments."

On home shores, the UK economy performed more strongly than previously estimated in 2024, with annual GDP growth revised up to 1.1% from 0.9%, driven by slight upward revisions in the first half of the year.

The Office for National Statistics also confirmed a modest 0.1% expansion in the final quarter.

Separately, retail sales volumes rose 1% in February, well ahead of forecasts for a decline.

Growth was fuelled by non-food purchases, with notable gains in household goods and jewellery, though food sales retreated after a strong January.

On the continent, sentiment surveys indicated renewed caution.

The European Commission's economic sentiment index for the eurozone fell to 95.2 in March, its lowest level since December and contrary to expectations for a modest improvement.

Confidence declined across services, retail, and among consumers.

In Germany, the GfK/NIM consumer climate index edged up slightly to -24.5 for April, though missed forecasts and remained deeply negative.

At the same time, Germany's jobless rate rose more than expected, with the number of unemployed increasing by 26,000 in March to its highest level since mid-2020.

Utilities and gold miners in the green, WH Smith falls as it offloads high street business

Utilities were among the leading gainers in London on Friday, as investors sought defensive exposure amid global economic uncertainty.

SSE climbed 3.78% after announcing the appointment of chief commercial officer Martin Pibworth as chief executive officer, with current chief Alistair Phillips-Davies set to step down this summer.

National Grid, United Utilities, and Severn Trent also advanced, rising between 2.38% and 3.28%.

Mining stocks were supported by a surge in gold prices, driven by renewed trade tensions after the reintroduction of tariffs by Donald Trump.

Endeavour Mining and Hochschild Mining rose 2.07% and 2.25%, respectively, as spot gold hit a record high of $3,086.21 per ounce before easing slightly.

Retailer B&M European Value Retail added 1.84% after analysts at Citi reiterated a 'buy' rating, arguing that the stock's recent pullback underestimated its earnings potential and strong post-pandemic performance metrics.

Property and housebuilding stocks also posted solid gains following revised UK economic data showing stronger-than-expected growth in 2024.

British Land rose 3.26%, while Supermarket Income REIT, Crest Nicholson, and Derwent London all gained more than 2%.

On the downside, WH Smith dropped 4.68% after announcing the sale of its UK high street business to Modella Capital for £76m.

The deal excludes its Funky Pigeon greeting cards unit, which remained under strategic review.

Aston Martin Lagonda fell 3.35% as auto sector sentiment soured on concerns over US tariff policies.

British Airways and Iberia owner International Consolidated Airlines Group lost 3.71% following warnings that Heathrow Airport could require £1bn in infrastructure upgrades, potentially leading to higher airline costs.

Burberry declined 2.45% after RBC Capital Markets cut its price target, citing lower profit expectations for next year.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,658.85 -0.08%
FTSE 250 (MCX) 19,864.98 -0.25%
techMARK (TASX) 4,658.78 0.27%

FTSE 100 - Risers

SSE (SSE) 1,606.00p 3.85%
National Grid (NG.) 1,009.50p 2.86%
United Utilities Group (UU.) 1,004.50p 2.81%
Severn Trent (SVT) 2,496.00p 2.38%
Croda International (CRDA) 2,960.00p 2.35%
SEGRO (SGRO) 696.40p 2.32%
Land Securities Group (LAND) 553.50p 2.31%
Haleon (HLN) 389.90p 2.09%
AstraZeneca (AZN) 11,416.00p 1.96%
LondonMetric Property (LMP) 183.10p 1.95%

FTSE 100 - Fallers

Melrose Industries (MRO) 492.70p -4.63%
International Consolidated Airlines Group SA (CDI) (IAG) 279.30p -3.95%
CRH (CDI) (CRH) 6,884.00p -3.72%
Entain (ENT) 612.40p -3.56%
Barclays (BARC) 293.50p -3.29%
Rolls-Royce Holdings (RR.) 771.20p -3.24%
Flutter Entertainment (DI) (FLTR) 17,795.00p -3.05%
Anglo American (AAL) 2,253.50p -2.95%
easyJet (EZJ) 459.50p -2.90%
Antofagasta (ANTO) 1,732.00p -2.56%

FTSE 250 - Risers

Spire Healthcare Group (SPI) 178.60p 3.84%
British Land Company (BLND) 374.40p 3.43%
B&M European Value Retail S.A. (DI) (BME) 269.90p 3.37%
Supermarket Income Reit (SUPR) 77.20p 3.20%
Helios Towers (HTWS) 110.00p 2.80%
Telecom Plus (TEP) 1,770.00p 2.79%
Victrex plc (VCT) 903.00p 2.61%
NCC Group (NCC) 141.40p 2.61%
Derwent London (DLN) 1,861.00p 2.53%
Crest Nicholson Holdings (CRST) 173.80p 2.24%

FTSE 250 - Fallers

Close Brothers Group (CBG) 299.80p -9.37%
Trustpilot Group (TRST) 233.50p -6.79%
Wizz Air Holdings (WIZZ) 1,575.00p -5.41%
Aston Martin Lagonda Global Holdings (AML) 65.25p -5.02%
WH Smith (SMWH) 1,039.00p -4.68%
Ferrexpo (FXPO) 58.40p -4.26%
Carnival (CCL) 1,383.50p -4.19%
Allianz Technology Trust (ATT) 361.50p -3.60%
Fidelity China Special Situations (FCSS) 269.50p -3.58%
Senior (SNR) 153.40p -3.16%

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE