London close: Stocks firmer ahead of Spring Statement
By Josh White
Date: Tuesday 25 Mar 2025
(Sharecast News) - London stocks ended Tuesday in positive territory, ahead of the Chancellor's Spring Statement on Wednesday, supported by gains in housebuilding shares and strength from Segro and Shell.
The FTSE 100 index rose 0.3% to close at 8,663.80 points, while the FTSE 250 also advanced 0.3% to 19,981.21 points.
In currency markets, sterling was last up 0.29% on the dollar to trade at $1.2961, and was 0.2% firmer against the euro, changing hands at €1.1989.
"Trading in recent sessions has been mercifully free of any tariff-related 'tape bombs', allowing US stocks to stage a decent rebound from their lows," said IG chief market analyst Chris Beauchamp.
"But the uncertainty ahead of 2 April remains - corporate insiders have stepped up their buying, which is normally a good sign, key levels like 42,000 on the Dow have been recovered, but for many the rally still remains suspect.
"Perhaps a coherent plan on tariffs will emerge, but it still feels like the US administration, and markets generally, are stumbling around in the dark."
Beauchamp noted that oil briefly hit a multi-week high on Tuesday, but added that reports of an agreement between Russia and the US to stop striking energy facilities meant crude turned lower during the afternoon.
"Crude's bounce from the lows of March has had the feel of a temporary relief rally, and small signs of progress in a peace deal may be just enough to tip energy prices into a fresh downward move."
UK retail sales fall sharply, German business sentiment shows signs of recovery
In economic news, UK retail sales fell sharply in March, marking a sixth consecutive month of decline, as consumer confidence remained weak.
According to the Confederation of British Industry's latest distributive trades survey, the retail sales balance dropped to -41 from -23 in February.
The negative trend is expected to continue into April, though at a slower pace.
Retailers also reported that sales remained below seasonal norms, with the balance at -36% in March, little changed from -34% the previous month.
"Annual retail sales volumes fell markedly in March and are expected to continue declining next month," said Martin Sartorius, principal economist at the CBI.
"Firms across the retail and wholesale sectors reported that global trade tensions and the Autumn Budget are weighing on consumer and business confidence, which is leading to reduced demand.
"Tomorrow's Spring Statement is likely to focus on the persistent challenges facing the UK economy, reinforcing the need for policies that boost businesses' confidence to invest."
In contrast, business sentiment in Germany showed signs of recovery.
The Ifo Institute's business climate index rose to 86.7 in March from 85.3 in February, driven by improved expectations and a better assessment of current conditions.
Manufacturing sentiment strengthened, with the index rising to -16.6 from -21.9, while the services sector also improved.
Measures for trade and construction showed modest gains, reflecting a gradual stabilisation across key areas of the economy.
"The rise in the Ifo chimes with the increase in other activity and sentiment surveys for Germany in March - in particular, there have been big increases in surveys of manufacturing activity, which suggests that the worst of the manufacturing recession might be over," said Franziska Palmas, senior Europe economist at Capital Economics.
"Forward-looking indicators have also generally risen more than indicators of current activity, probably reflecting optimism about the upcoming fiscal stimulus."
Housebuilders in the green, Kingfisher falls on earnings growth warning
On London's equity markets, shares in UK housebuilders rose on Tuesday after Bellway reported a strong first-half performance, buoyed by lower mortgage rates and improving consumer confidence.
The company posted a 12% rise in interim underlying pre-tax profit, lifting its stock 1.33%.
Peers also advanced, with Vistry Group up 1.39%, Persimmon 0.73% higher, Barratt Redrow gaining 0.31%, Taylor Wimpey up 0.26%, and Crest Nicholson leading the sector with a 6.04% jump.
Segro was in the green, rising 2.08% after unveiling a £1bn data centre joint venture with Pure Data Centres, owned by Oaktree.
Shell climbed 2.1% after outlining plans to grow liquefied natural gas sales by 4% to 5% annually and expanding its shareholder returns via increased buybacks, while lowering capital expenditure targets.
Morgan Sindall rose 3.62% after it said 2025 profits would come in slightly above market expectations, driven by strength in its fit out unit.
AO World added 4.79% after flagging full-year profits at the top end of its upgraded guidance.
Smiths Group advanced 4.66% on the back of strong interim results and full-year guidance reaffirmation.
THG jumped 5.53% after announcing a £90m share placing and refinancing, including a £60m investment from its founder to support growth plans.
On the downside, Kingfisher slumped 14.09% after cautioning that earnings growth this year would be limited and warning of near-term pressures from fiscal policies in the UK and France.
IP Group shed 5.65% after posting a wider annual loss and lower net asset value, though it said it would extend its share buyback programme by £10m.
Reporting by Josh White for Sharecast.com.
Market Movers
FTSE 100 (UKX) 8,663.80 0.30%
FTSE 250 (MCX) 19,981.21 0.30%
techMARK (TASX) 4,681.01 -0.34%
FTSE 100 - Risers
Anglo American (AAL) 2,393.50p 3.82%
Antofagasta (ANTO) 1,926.00p 3.16%
International Consolidated Airlines Group SA (CDI) (IAG) 296.60p 2.99%
Airtel Africa (AAF) 163.90p 2.69%
Weir Group (WEIR) 2,448.00p 2.60%
Informa (INF) 802.40p 2.22%
SEGRO (SGRO) 705.40p 2.08%
Pearson (PSON) 1,218.00p 2.05%
Beazley (BEZ) 885.50p 1.96%
Standard Chartered (STAN) 1,198.00p 1.70%
FTSE 100 - Fallers
Kingfisher (KGF) 240.30p -14.09%
Flutter Entertainment (DI) (FLTR) 18,615.00p -2.84%
Land Securities Group (LAND) 548.50p -1.79%
Diageo (DGE) 2,026.00p -1.24%
Games Workshop Group (GAW) 14,360.00p -1.24%
AstraZeneca (AZN) 11,316.00p -1.19%
Admiral Group (ADM) 2,892.00p -1.13%
Associated British Foods (ABF) 1,901.50p -0.99%
Coca-Cola Europacific Partners (DI) (CCEP) 6,480.00p -0.92%
BAE Systems (BA.) 1,570.00p -0.88%
FTSE 250 - Risers
Morgan Sindall Group (MGNS) 3,300.00p 8.55%
Close Brothers Group (CBG) 302.20p 6.56%
Energean (ENOG) 868.50p 6.50%
Pollen Street Group Limited (POLN) 762.00p 6.42%
Crest Nicholson Holdings (CRST) 175.70p 6.04%
THG (THG) 35.88p 5.53%
Ithaca Energy (ITH) 142.20p 3.80%
Bloomsbury Publishing (BMY) 618.00p 3.34%
Wetherspoon (J.D.) (JDW) 570.00p 3.26%
OSB Group (OSB) 459.80p 3.05%
FTSE 250 - Fallers
IP Group (IPO) 41.75p -5.65%
Raspberry PI Holdings (RPI) 483.60p -5.64%
Ferrexpo (FXPO) 62.20p -4.04%
Ocado Group (OCDO) 249.80p -3.92%
Indivior (INDV) 744.50p -3.69%
FirstGroup (FGP) 163.80p -2.90%
Burberry Group (BRBY) 813.00p -2.75%
Oxford Nanopore Technologies (ONT) 101.70p -2.49%
Spectris (SXS) 2,414.00p -2.19%
Syncona Limited NPV (SYNC) 87.00p -2.14%
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