London close: Stocks weaker ahead of Putin-Trump talks
By Josh White
Date: Friday 15 Aug 2025
(Sharecast News) - London stocks ended lower on Friday as investors turned cautious ahead of talks between US president Donald Trump and his Russian counterpart Vladimir Putin in Alaska, aimed at ending the war in Ukraine.
"It is not often that the market's attention is centred on Alaska but the US state will be firmly in focus on Friday as president Donald Trump and Russian leader Vladimir Putin meet to discuss the Ukraine conflict," said AJ Bell investment director Russ Mould.
"Any outcomes will not come until after UK markets have concluded trading for the day but investors will be watching closely for signs a credible peace deal is in the offing and any outcomes could set the mood music for next week."
The FTSE 100 index fell 0.42% to 9,138.90 points, while the FTSE 250 slipped 0.2% to 21,758.24 points.
Market sentiment was subdued as traders awaited potential geopolitical developments from the high-level meeting.
"Oil prices have been somewhat volatile ahead of the summit as traders seek to work out if Russian exports to Western countries might resume," Mould added.
In currency markets, sterling strengthened 0.18% against the dollar to $1.3557, but fell 0.28% against the euro to €1.1584.
Patrick Munnelly, market strategy partner at TickMill, noted that "Treasuries saw a slight increase, recovering from losses caused by a higher than expected US inflation report, prompting traders to reduce their expectations for an interest rate cut by the Federal Reserve in the upcoming month."
He added that "oil prices remained stable as investors prepared for the upcoming summit between the US and Russian presidents in Alaska on Friday."
US retail sales rise, China data disappoints
In economic news, US retail sales rose in line with expectations in July, extending gains from the previous month and reflecting solid demand in several categories.
Data from the Census Bureau showed total sales increased 0.5% last month following a 0.6% rise in June.
Core sales, excluding autos, were up 0.3%, suggesting a slight moderation in discretionary spending.
On an annual basis, sales climbed 5.9%, supported by back-to-school purchases and extended summer discounting.
Automobiles remained a key driver for the second consecutive month, while non-store retailers and food services also posted gains.
The figures came as investors increasingly priced in a September interest rate cut from the Federal Reserve, with softer inflation data and a cooling labour market bolstering the case for monetary easing.
Munnelly cautioned that "following a significant increase in US wholesale inflation in July - marking the fastest rise in three years - traders reduced the likelihood of a September rate cut to about 90%, down from previously assuming it was a certainty."
He said the surprise rise in the US producer price index "complicates the case for a rate cut in September, particularly for moderate FOMC voters, despite market expectations leaning heavily toward this outcome."
However, lingering signs of spending fatigue, particularly among lower-income households, continued to cloud the outlook.
Consumer sentiment in the US weakened for the first time in four months in August, with the University of Michigan's preliminary index falling to 58.6 from 61.7 in July, well below expectations of 62.
The decline was driven by renewed inflation concerns and a sharp deterioration in buying conditions for durable goods.
The current conditions index fell to 60.9 from 68.0, while the expectations measure eased to 57.2 from 61.7.
Short-term inflation expectations rose to 4.9% from 4.5%, ending a two-month decline, while the five-year outlook increased to 3.9% from 3.4%.
Elsewhere, China's latest economic data underscored slowing momentum in July, with industrial production, retail sales and fixed asset investment all missing expectations.
Industrial output grew 5.7% year-on-year, down from 6.8% in June and the weakest pace since November 2024, as flooding and extreme heat weighed on manufacturing.
Retail sales rose just 3.7%, well below the 4.6% forecast and the slowest growth since December 2024, while fixed asset investment increased 1.6% in the January-July period, easing from 2.8% growth in the first half of the year.
TD Securities noted the figures suggested that anticipated frontloading of orders ahead of the original 12 August US tariff deadline had not occurred, despite Trump agreeing earlier this week to extend the tariff truce with China by 90 days.
Miners in the green, defence stocks down ahead of Trump-Putin talks
On London's equity markets, mining stocks provided a lift, with Anglo American up 2.21%, Glencore rising 1.78%, Antofagasta adding 1.24% and Rio Tinto gaining 0.74%.
"The miners were in demand despite weak economic data from key commodities consumer China - in the hope this might persuade Beijing to launch further stimulus measures," Mould observed.
Bytes Technology Group surged 7.86% after launching a share buyback of up to £25m.
Ocean Wilsons advanced 3.07% as it reported a 6.2% second-quarter return on its investment portfolio, bringing year-to-date gains to 5.1% despite what it described as a "challenging macroeconomic environment" marked by trade and geopolitical uncertainty.
The portfolio was valued at $340.9m at the end of June, with total implied net asset value at $944.2m.
Associated British Foods ended flat after agreeing to acquire Hovis Group from private equity firm Endless.
"Associated British Foods will hope it can get the best of both businesses as it agrees to buy Hovis from private equity firm Endless and add it to its existing bakery holding Kingsmill," said Mould, who cautioned that "the danger is the regulator gets involved" given bread's status as a staple.
He added that for ABF's conglomerate structure to remain sustainable "all parts of the group need to be in reasonable shape - this deal could help put the Allied Bakeries division in a better place."
On the downside, defence stocks were under pressure ahead of the Trump-Putin talks in Alaska, with Rolls-Royce falling 2.5% and BAE Systems down 0.85%.
Outside the FTSE 350, S4 Capital dropped 2.73% after MSQ Partners ruled out a potential merger, saying it was "surprised" by recent speculation and stressing that neither it nor its majority shareholder intended to pursue discussions regarding the rumoured deal.
Reporting by Josh White for Sharecast.com.
Market Movers
FTSE 100 (UKX) 9,138.90 -0.42%
FTSE 250 (MCX) 21,758.24 -0.20%
techMARK (TASX) 5,292.96 0.34%
FTSE 100 - Risers
Anglo American (AAL) 2,170.00p 2.21%
Glencore (GLEN) 299.75p 1.78%
BP (BP.) 421.40p 1.78%
Flutter Entertainment (DI) (FLTR) 21,680.00p 1.55%
Games Workshop Group (GAW) 15,680.00p 1.29%
Antofagasta (ANTO) 2,122.00p 1.24%
Fresnillo (FRES) 1,708.00p 1.12%
WPP (WPP) 375.10p 0.99%
International Consolidated Airlines Group SA (CDI) (IAG) 387.50p 0.91%
easyJet (EZJ) 515.80p 0.86%
FTSE 100 - Fallers
Standard Chartered (STAN) 1,305.50p -7.21%
Smurfit Westrock (DI) (SWR) 3,125.00p -4.55%
Rolls-Royce Holdings (RR.) 1,074.00p -2.50%
3i Group (III) 3,975.00p -2.36%
Airtel Africa (AAF) 216.20p -1.82%
Rightmove (RMV) 763.60p -1.78%
NATWEST GROUP (NWG) 544.00p -1.70%
HSBC Holdings (HSBA) 938.90p -1.57%
Rentokil Initial (RTO) 364.60p -1.57%
CRH (CDI) (CRH) 8,220.00p -1.39%
FTSE 250 - Risers
Bytes Technology Group (BYIT) 389.80p 7.86%
Wizz Air Holdings (WIZZ) 1,395.00p 4.18%
Ocean Wilsons Holdings Ltd. (OCN) 1,185.00p 3.07%
Auction Technology Group (ATG) 342.50p 2.24%
JPMorgan Japanese Inv Trust (JFJ) 689.00p 1.92%
Worldwide Healthcare Trust (WWH) 321.50p 1.74%
Energean (ENOG) 920.50p 1.70%
Balfour Beatty (BBY) 569.00p 1.61%
AO World (AO.) 89.50p 1.59%
Petershill Partners (PHLL) 235.00p 1.51%
FTSE 250 - Fallers
Avon Technologies (AVON) 1,988.00p -3.16%
Ocado Group (OCDO) 359.60p -2.99%
Lion Finance Group (BGEO) 7,705.00p -2.64%
Frasers Group (FRAS) 682.00p -2.64%
TBC Bank Group (TBCG) 4,570.00p -2.56%
Close Brothers Group (CBG) 516.00p -2.55%
Supermarket Income Reit (SUPR) 79.10p -2.47%
Kier Group (KIE) 207.00p -1.90%
IP Group (IPO) 58.40p -1.85%
Polar Capital Technology Trust (PCT) 402.00p -1.71%
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