(Sharecast News) – London stocks closed marginally lower on Friday, with earlier gains lost as investors turned their attention towards Wall Street, digesting a series of significant bank earnings reports.
The FTSE 100 ended the session down 0.08% at 7,434.57, and the FTSE 250 dropped 0.35% to 18,566.81.
On the week, however, the FTSE 100 was ahead 2.45%.
In currencies, sterling was also in the red, last trading down 0.18% on the dollar at $1.3112, as it gave up 0.21% against the euro to change hands at €1.1669.
“Positive inflation news from the US has given investors a nice big hug they’re still feeling at the end of the week,” said AJ Bell head of financial analysis Danni Hewson.
“Whilst today has been a little less positive for European markets they will all end the week on the front foot, with London’s FTSE 100 up almost two and a half percent on last Friday’s close.
“There is a sense that … disinflation might be around the corner, at least in the US, and the trajectory of the dollar over the last few days has created some opportunities in areas like mega tech, where a weaker dollar can make them more competitive on the global stage.”
Eurozone nears elimination of trade deficit amid rising exports and falling energy imports
Amid a dearth of economic news, the eurozone reported that it nearly eradicated its trade deficit in May, making for a significant improvement from the €30.3bn shortfall a year ago.
A strong export performance in chemicals and machinery sectors, along with a decrease in energy product imports, contributed substantially to the improvement.
As per the data, the non-seasonally adjusted trade deficit in the euro area for May stood at a meagre €0.3bn.
On a seasonally-adjusted basis, the deficit shrank considerably to €0.9bn in May from the previously recorded €8bn in April.
Broadening the scope to the entire European Union, there was also a noticeable improvement in the region’s financial trade landscape.
The trade surplus in manufacturing goods soared to a robust €142.3bn during the first five months of 2023, marking a striking contrast to the figures from the corresponding period of the previous year.
The current surplus was nearly double the amount achieved a year ago.
Spirax-Sarco, Burberry and Dr Martens surge, asset managers suffer
On London’s equity markets, Spirax-Sarco Engineering rose 3.11% after UBS upgraded the company’s rating from ‘neutral’ to ‘buy’, finding the current price point attractive for investment.
Burberry Group saw a 1% uptick, overturning initial losses after the luxury fashion brand reaffirmed its full-year guidance following a robust first-quarter sales performance driven by a resurgent Chinese market.
According to Burberry, retail sales for the 13 weeks ended 1 July surged 17% to £589m, or 18% on a like-for-like basis.
Factoring in constant exchange rates, sales climbed 19% higher.
Dr Martens leapt 5.16% after Bank of America Merrill Lynch upgraded the footwear manufacturer’s stock to ‘buy’.
The bank highlighted the company’s “attractive value proposition” and noted that shares have de-rated by 25% since its initial public offering.
On the downside, Liontrust Asset Management tumbled 9.73% following reported net outflows and a decrease in assets under management and advice for the June quarter.
Ashmore Group fell 8.3% as it revealed a $1.8bn drop in assets under management during the quarter ending in June as well.
Ninety One Group declined 3.96% after it too disclosed that its assets under management fell to £124.8bn at the end of June, down from £129.3bn at the end of March and £135bn a year earlier.
Elsewhere, ITV shares dipped 1.1% after the broadcaster announced that it had shelved plans to acquire the TV and film production company All3Media, currently owned by Warner Bros Discovery and Liberty Global.
ITV said it was “still monitoring” the situation.
Shares of Croda International saw a drop of 2.62% after Barclays reduced its price target for the company to 6,600p from the previous 7,200p.
Reporting by Josh White for Sharecast.com.
FTSE 100 (UKX) 7,434.57 -0.08%
FTSE 250 (MCX) 18,566.81 -0.35%
techMARK (TASX) 4,387.98 0.22%
FTSE 100 – Risers
Spirax-Sarco Engineering (SPX) 10,455.00p 3.11%
London Stock Exchange Group (LSEG) 8,310.00p 2.45%
Mondi (MNDI) 1,292.50p 1.85%
Halma (HLMA) 2,244.00p 1.77%
Experian (EXPN) 3,001.00p 1.59%
Unite Group (UTG) 930.50p 1.53%
Auto Trader Group (AUTO) 634.60p 1.44%
Rightmove (RMV) 542.40p 1.35%
Smurfit Kappa Group (CDI) (SKG) 2,874.00p 1.20%
Rentokil Initial (RTO) 613.60p 1.19%
FTSE 100 – Fallers
Ocado Group (OCDO) 594.40p -4.13%
Croda International (CRDA) 5,648.00p -2.62%
Rolls-Royce Holdings (RR.) 146.65p -2.28%
BP (BP.) 456.45p -1.98%
Legal & General Group (LGEN) 223.80p -1.63%
Johnson Matthey (JMAT) 1,754.00p -1.57%
Shell (SHEL) 2,313.50p -1.39%
Aviva (AV.) 386.00p -1.33%
Fresnillo (FRES) 628.40p -1.16%
M&G (MNG) 191.75p -1.16%
FTSE 250 – Risers
Dr. Martens (DOCS) 133.00p 5.16%
Digital 9 Infrastructure NPV (DGI9) 53.60p 4.08%
Crest Nicholson Holdings (CRST) 189.20p 3.61%
Vistry Group (VTY) 698.00p 2.50%
Grafton Group Ut (CDI) (GFTU) 813.60p 2.44%
Bridgepoint Group (Reg S) (BPT) 202.00p 2.12%
TP Icap Group (TCAP) 156.60p 2.09%
Renishaw (RSW) 3,978.00p 2.00%
Redrow (RDW) 458.80p 1.59%
Polar Capital Technology Trust (PCT) 2,240.00p 1.59%
FTSE 250 – Fallers
Liontrust Asset Management (LIO) 640.00p -9.73%
Ashmore Group (ASHM) 198.80p -8.30%
Ninety One (N91) 167.30p -3.96%
Synthomer (SYNT) 81.85p -3.76%
easyJet (EZJ) 477.80p -3.65%
UK Commercial Property Reit Limited (UKCM) 50.70p -3.61%
HGCapital Trust (HGT) 378.00p -3.47%
Wizz Air Holdings (WIZZ) 2,676.00p -3.43%
Energean (ENOG) 1,017.00p -3.33%
Future (FUTR) 763.00p -3.11%