- easyJet
- 22 May 2025 17:29:53
Source: Sharecast
The FTSE 100 index fell 0.54% to close at 8,739.26 points, while the FTSE 250 lost 0.72% to close at 20,799.66 points.
In currency markets, sterling was little changed against the dollar, up just 0.01% at $1.3422, while it advanced 0.43% on the euro to trade at €1.1897.
“Stocks in Europe have fallen victim to further profit-taking this afternoon despite the passage of Trump’s tax bill in the House of Representatives,” said IG chief markets analyst Chris Beauchamp.
“Such progress on a deal might normally be seen as a positive, but the worsening US debt situation continues to drive higher yields in bonds and wariness among the investing community.
“Weakness in a host of consumer-related names in London, from housebuilders to retailers, shows that worries about the health of this key part of the economy are bubbling back to the surface.”
Beauchamp said an absence of new trade ‘deals’ and continued worries about the fiscal trajectory of the US meant that optimism remained “hard to find” on Wall Street.
“Fortunately the early part of the session has seen some healthy buying in most of the ‘magnificent seven’, providing further signs that risk appetite hasn’t dissipated entirely.
“Nvidia’s earnings loom large in next week’s calendar, providing a final pivotal moment as first-quarter earnings season winds down.”
UK private sector still in contraction, manufacturing output contracts sharply
In economic news, the UK private sector remained in contraction territory in May, although the decline moderated.
The flash S&P Global composite PMI rose to 49.4 from April’s 48.5, just below the 50.0 mark that separates growth from contraction.
Services activity edged into expansion at 50.2, while manufacturing output weakened further, with the index falling to 44.8.
Business confidence improved despite a sharper fall in new orders, and firms appeared less concerned about long-term fallout from US tariffs.
“After an awful April, businesses reported a milder May,” said Chris Williamson, chief business economist at S&P Global Market Intelligence.
“Business confidence has rebounded from April’s recent low, which had seen confidence collapse to a degree not seen since the Truss budget of 2022, and price pressures have moderated after spiking higher.
“However, output still fell slightly when measured across all goods and services for a second successive month, hinting at the possibility of the economy contracting in the second quarter.”
Separate data from the Confederation of British Industry showed UK manufacturing output contracted sharply in the three months to May.
The balance fell to -25 from -2, matching the steepest decline since August 2020.
Total order books were reported as below seasonal norms, though export orders improved from April’s low levels.
Meanwhile, UK consumer sentiment rose in May following the announcement of a key trade deal with the US.
The British Retail Consortium’s latest monitor showed economic expectations for the next three months improved to -36 from -48, while views on personal finances also picked up.
However, spending on retail slipped slightly, and overall personal spending remained steady.
“Consumer confidence improved as UK economic growth picked up and geopolitical tensions eased as the US-China trade war began to cool,” said Helen Dickinson, chief executive of the BRC.
“However, it remains far below levels seen last year.”
Public finances added to concerns, with UK government borrowing rising to £20.2bn in April, exceeding forecasts and marking the fourth-highest April figure since records began.
Borrowing for the previous financial year was also revised to £148.3bn, above the official forecast.
On the continent, the eurozone composite PMI fell to 49.5 in May from 50.4, indicating a return to contraction.
The bloc’s services sector slowed unexpectedly, while manufacturing output held steady.
Germany’s activity declined, with its composite index falling to 48.6, while France’s index rose slightly to 48.0.
Business confidence across the region weakened to its lowest since October 2023.
However, Germany’s Ifo Institute reported a modest improvement in business sentiment.
The business climate index rose to 87.5, with better expectations across manufacturing, services, and construction sectors, although current conditions remained subdued.
In the US, initial jobless claims remained broadly stable.
The Labor Department said claims dipped by 2,000 to 227,000 for the week ended 17 May, while continuing claims rose by 36,000 to 1.903 million.
easyJet slides on pre-tax loss, Johnson Matthey soars
On London’s equity markets, easyJet descended 2.62% after posting a first-half pre-tax loss of £394m, in line with expectations.
While forward bookings for the third quarter were 80% sold and the company said current trends supported meeting full-year estimates, it cautioned that a key summer booking period remained.
DCC dropped 4.9% as it traded ex-dividend, while British Land slipped 5.48% after reporting flat earnings per share despite a 4% rise in underlying profit.
Close Brothers Group slid 5.77% following a downgrade by Shore Capital, which described its third-quarter update as mixed.
Intertek shed 3.33% even as it maintained a positive outlook for 2025.
Harry Potter publisher Bloomsbury Publishing plunged 19.51% after reporting a 22% fall in annual pre-tax profit to £32.5m.
Infrastructure group Hill & Smith also fell 6.27%, despite saying it expected to meet full-year earnings guidance and noting no material impact from US tariffs so far.
On the upside, Johnson Matthey soared 29.04% after announcing the £1.8bn sale of its Catalyst Technologies business to Honeywell.
Hiscox jumped 7.6% following a positive response to its capital markets day, while QinetiQ rose 8.09% as it forecast improved trading supported by a major defence contract.
ConvaTec gained 1.52% on the back of a strong start to the year, and Mitchells & Butlers added 1.99% after guiding annual earnings to the upper end of forecasts.
Marks & Spencer rose 1.47% after an upgrade to ‘buy’ at Jefferies, and BT Group edged up 1.15% despite warning of further revenue declines in the year ahead.
Reporting by Josh White for Sharecast.com.
Market Movers
FTSE 100 (UKX) 8,739.26 -0.54%
FTSE 250 (MCX) 20,799.66 -0.72%
techMARK (TASX) 4,774.54 -0.21%
FTSE 100 - Risers
Hiscox Limited (DI) (HSX) 1,284.00p 7.54%
BT Group (BT.A) 175.35p 3.60%
Pershing Square Holdings Ltd NPV (PSH) 3,856.00p 3.49%
Beazley (BEZ) 949.50p 3.32%
Marks & Spencer Group (MKS) 384.00p 2.48%
JD Sports Fashion (JD.) 85.16p 2.45%
Fresnillo (FRES) 1,106.00p 1.94%
Rolls-Royce Holdings (RR.) 839.00p 1.77%
Convatec Group (CTEC) 279.60p 1.60%
BAE Systems (BA.) 1,842.00p 1.26%
FTSE 100 - Fallers
DCC (CDI) (DCC) 4,540.00p -4.90%
Intermediate Capital Group (ICG) 1,982.00p -4.16%
Diageo (DGE) 2,061.00p -3.38%
Intertek Group (ITRK) 4,758.00p -3.29%
Kingfisher (KGF) 300.00p -3.19%
Persimmon (PSN) 1,323.00p -3.15%
Flutter Entertainment (DI) (FLTR) 17,760.00p -2.87%
Whitbread (WTB) 2,790.00p -2.75%
Barratt Redrow (BTRW) 457.30p -2.62%
easyJet (EZJ) 549.80p -2.62%
FTSE 250 - Risers
Johnson Matthey (JMAT) 1,815.00p 30.67%
QinetiQ Group (QQ.) 469.60p 6.78%
Jupiter Fund Management (JUP) 83.40p 5.30%
Investec (INVP) 511.00p 3.95%
Currys (CURY) 127.40p 2.25%
Lancashire Holdings Limited (LRE) 608.00p 2.18%
Lion Finance Group (BGEO) 6,630.00p 2.08%
Victrex plc (VCT) 800.00p 2.04%
Mitchells & Butlers (MAB) 281.50p 1.99%
Bakkavor Group (BAKK) 207.50p 1.72%
FTSE 250 - Fallers
Bloomsbury Publishing (BMY) 524.00p -19.51%
British Land Company (BLND) 389.20p -5.44%
Tate & Lyle (TATE) 572.50p -5.06%
Hill and Smith (HILS) 1,828.00p -4.79%
Petershill Partners (PHLL) 206.50p -4.40%
Close Brothers Group (CBG) 340.60p -4.37%
TP Icap Group (TCAP) 260.50p -3.87%
Ferrexpo (FXPO) 61.00p -3.79%
THG (THG) 24.54p -3.76%
Genus (GNS) 1,998.00p -3.71%