London close: Stocks just manage to maintain winning streak
By Josh White
Date: Thursday 01 May 2025
(Sharecast News) - London stocks edged higher on Thursday, extending the top-flight index's winning streak to a 14th consecutive session even as investors assessed weaker-than-expected US economic data, with initial jobless claims rising to a three-month high.
The FTSE 100 index added just 0.02% to close at 8,496.80 points, while the more domestically-focussed FTSE 250 outperformed, rising 1.26% to 20,134.97.
In currency markets, sterling was last down 0.46% on the dollar to trade at $1.3268, while it remained unchanged against the euro, changing hands at €1.1765.
"April's dip buyers can feel well pleased with their work, and could be justified in looking forward to more gains in May," said IG chief market analyst Chris Beauchamp.
"Last night's tech earnings helped save markets from the poor GDP reading, and the pressure is now on Apple and Amazon to repeat the trick tonight.
"Sentiment was so washed out in April that a bounce was inevitable, but it looks like there's still enough bearishness to go around, providing fuel for more gains as sellers are forced to get back into the market."
Beauchamp noted that equities and gold had been "inversely correlated" recently, adding that the correction in the latter looked like it had further to go.
"Fears of a worsening global outlook drove a manic rush into gold, which took it to record highs, but these flows have eased for the time being.
"While yesterday's data seemed to justify the flight to gold, a period of better data may well see more short-term downside for the commodity."
US jobless claims rise sharply, UK consumer lending grows
In economic news, US jobless claims rose sharply last week, suggesting potential softening in the labor market.
The Department of Labor reported that initial claims climbed by 18,000 to 241,000 for the week ended 26 April, the highest since February and well above forecasts of 224,000.
On an unadjusted basis, claims rose by nearly 13,000, with notable increases in New York and Massachusetts.
Continuing claims also rose more than expected, up 83,000 to 1.91 million, marking their highest level since late 2021.
Meanwhile, federal employee claims fell slightly, despite recent government layoffs.
In a separate report, US manufacturing activity eased further in April but not as much as economists had anticipated.
The Institute for Supply Management's manufacturing PMI slipped to 48.7 from 49.0 in March, remaining in contraction territory but above expectations of 48.0.
New orders saw a modest improvement, though they stayed below the 50-point threshold, while input prices edged higher.
Employment conditions in the sector also showed a slight uptick.
On home shores, UK consumer and mortgage lending both rose in March, but signs of household caution persisted.
The Bank of England said net lending to individuals increased 0.7% on the month to nearly £1.9trn.
Consumer credit rose by £0.9bn, falling short of expectations, while mortgage lending surged by £13bn, up sharply from February.
However, the number of mortgage approvals declined for a third consecutive month, underscoring lingering concerns about affordability and housing demand.
Ashley Webb at Capital Economics highlighted how the gain in consumer credit was lower than the average of £1.2bn recorded during the previous six months.
"This suggests households started to spend a bit more cautiously amid the weakening employment outlook even before the new US tariffs regime hit consumer sentiment in April," he said.
"Overall, today's data release suggests households started to tighten their purse strings amid the weakening economic outlook.
"If the recent drop in consumer confidence is sustained, consumer spending may be a bit softer than we expect this year."
Whitbread rises on share buyback, Clarkson sinks after profit warning
On London's equity markets, Whitbread shares rose 3.39% after the leisure group announced a £250m share buyback, despite reporting a 19% drop in annual profits.
The company reaffirmed its five-year plan remained on track.
Informa gained 4.34% following a positive trading update, highlighting strong first-quarter growth and continued revenue visibility through subscriptions and forward bookings.
Rolls-Royce advanced 1.43% after stating it had made a strong start to the year and was taking steps to mitigate the impact of newly imposed US trade tariffs.
The company said it remained confident in its outlook despite the external headwinds.
Ferrexpo surged 22.24% on news of a minerals agreement between the US and Ukraine, which includes American investment in Ukraine's reconstruction in exchange for access to natural resources.
The announcement boosted investor sentiment toward the iron ore producer, which operates primarily in the country.
On the downside, Lloyds Banking Group fell 1.97% after increasing its loan loss provisions to £309m from £57m year earlier, citing risks linked to US tariffs.
Although net income rose 4% to £4.4bn, pre-tax profit declined 7% to £1.5bn.
Clarkson tumbled 10.05% after issuing a profit warning, saying it now expected annual earnings to fall well below last year's levels due to the impact of tariffs and weaker freight markets.
The ship broker had already cautioned investors in March about macroeconomic pressures.
Elsewhere, 4imprint Group, Centrica, and Greggs traded lower - down 10.07%, 0.97%, and 2.26%, respectively - after moving ex-dividend.
Reporting by Josh White for Sharecast.com.
Market Movers
FTSE 100 (UKX) 8,496.80 0.02%
FTSE 250 (MCX) 20,134.97 1.26%
techMARK (TASX) 4,627.98 1.10%
FTSE 100 - Risers
St James's Place (STJ) 1,009.00p 6.79%
Whitbread (WTB) 2,748.00p 5.78%
Informa (INF) 758.60p 4.23%
CRH (CDI) (CRH) 7,328.00p 4.18%
easyJet (EZJ) 514.60p 4.04%
InterContinental Hotels Group (IHG) 8,262.00p 4.03%
Anglo American (AAL) 2,097.00p 3.35%
Haleon (HLN) 388.70p 3.27%
Persimmon (PSN) 1,332.00p 2.86%
Prudential (PRU) 812.20p 2.58%
FTSE 100 - Fallers
Lloyds Banking Group (LLOY) 71.34p -2.65%
Associated British Foods (ABF) 2,016.00p -2.33%
London Stock Exchange Group (LSEG) 11,360.00p -2.28%
Marks & Spencer Group (MKS) 380.70p -2.13%
Pearson (PSON) 1,174.50p -1.84%
Coca-Cola HBC AG (CDI) (CCH) 3,830.00p -1.79%
Centrica (CNA) 157.55p -1.62%
GSK (GSK) 1,463.00p -1.38%
Bunzl (BNZL) 2,320.00p -1.28%
AstraZeneca (AZN) 10,608.00p -1.12%
FTSE 250 - Risers
Ferrexpo (FXPO) 72.00p 22.24%
Genus (GNS) 1,990.00p 8.14%
Abrdn (ABDN) 156.50p 6.03%
Wizz Air Holdings (WIZZ) 1,718.00p 5.66%
Mitchells & Butlers (MAB) 261.00p 5.45%
C&C Group (CDI) (CCR) 144.60p 5.09%
Aston Martin Lagonda Global Holdings (AML) 70.65p 4.90%
Oxford Nanopore Technologies (ONT) 124.20p 4.46%
Polar Capital Technology Trust (PCT) 301.00p 4.33%
Currys (CURY) 115.70p 4.23%
FTSE 250 - Fallers
4Imprint Group (FOUR) 3,070.00p -9.71%
Clarkson (CKN) 2,995.00p -8.83%
Hochschild Mining (HOC) 272.00p -3.61%
Coats Group (COA) 70.00p -3.31%
Elementis (ELM) 121.60p -2.56%
Sequoia Economic Infrastructure Income Fund Limited (SEQI) 74.50p -1.98%
Greggs (GRG) 1,829.00p -1.51%
Morgan Advanced Materials (MGAM) 193.80p -1.42%
Energean (ENOG) 870.50p -1.30%
Ithaca Energy (ITH) 131.80p -1.20%
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