Source: Sharecast
The FTSE 100 index slipped 0.59% to close at 8,726.01 points, while the FTSE 250 edged up 0.04% to 20,946.19 points.
In currency markets, sterling was last down 0.29% on the dollar to trade at $1.3468, while it firmed 0.04% against the euro, changing hands at €1.1929.
“Stock indices and bond yields lack direction ahead of Nvidia's after-hours first quarter earnings, pausing this week's ascents,” said IG senior technical analyst Axel Rudolph.
“US mortgage applications are falling for a second week in a row as benchmark 30-year fixed mortgage rates continue to climb to their highest level in four months, close to the 7% mark.
“Meanwhile the greenback continues to edge higher; euro area inflation expectations rise for a second straight month as France's household spending rebounds in April.”
Rudolph noted that oil prices had risen by a percentage point amid heightened tensions in the Middle East, although they remained range-bound between $60 and $64 per barrel.
“Gold and silver prices are little changed but the copper price has taken a one percent hit amid an appreciating US dollar.”
UK grocery prices inflation hastens, German unemployment grows more than expected
In economic news, UK grocery prices rose 4.1% in the four weeks to 18 May compared with a year earlier, according to fresh data from Kantar, up from 3.8% the previous month and marking the steepest annual increase since February 2024.
The uptick followed April’s rise in the National Living Wage and higher employer national insurance contributions.
Despite the inflationary pressure, take-home grocery sales increased 4.4% year-on-year, helped by warm weather that boosted seasonal purchases such as burgers and potato salad.
Among retailers, Tesco led with sales up 5.9% over 12 weeks, while Lidl and Aldi posted the strongest growth among discounters.
“This latest jump in grocery price inflation takes us into new territory for 2025,” said Fraser McKevitt, head of retail and consumer insight at Kantar.
“Households have been adapting their buying habits to manage budgets for some time, but we typically see changes in behaviour once inflation tips beyond the 3% to 4% point as people notice the impact on their wallets more.”
In Germany, unemployment rose by 33,000 in May on a seasonally adjusted basis, well above the 10,000 increase expected by analysts.
The total number of unemployed reached nearly three million, adding to concerns about the resilience of the eurozone’s largest economy amid weak industrial output and sluggish consumer confidence.
“The labour market is not getting the tailwind it needs for a trend reversal,” said labour office head Andrea Nahles.
“Therefore, we expect unemployment figures to continue to rise in the summer.”
Meanwhile, the Reserve Bank of New Zealand cut its official cash rate by 25 basis points to 3.25%, continuing a series of rate reductions in response to soft domestic demand and growing global headwinds linked to US trade policy.
The central bank projected further easing ahead, forecasting a terminal rate of 2.85% by early 2026.
Despite inflation sitting at 2.5%, within its 1% to 3% target band, the RBNZ warned of near-term price pressures and a muted growth outlook, with GDP expected to grow only modestly and unemployment peaking at 5.2%.
Governor Christian Hawkesby signalled policy flexibility, noting the bank’s neutral stance amid rising international risks.
Kingfisher falls, Chemring in the green
On London’s equity markets, shares in Kingfisher dropped 3.55% after the DIY retailer reported a modest rise in first-quarter like-for-like sales, as strong trading in the UK and Ireland was offset by continued weakness in its French operations.
Greggs also fell 3.49% following a downgrade by Shore Capital to ‘hold’, with analysts suggesting the bakery chain’s investment phase has peaked, offering limited near-term catalysts for the stock.
Rentokil Initial declined 0.65%, reversing earlier gains after announcing the €410m sale of its French workwear division to private equity firm HIG Capital.
Investors appeared to take a cautious view despite the disposal aligning with Rentokil’s strategic refocus.
On the upside, Chemring Group surged 4.92% after the European Union approved a €150bn defence procurement programme, bolstering investor sentiment in the security sector.
C&C Group climbed 3.23% as it held full-year guidance and reported a profit rebound, easing concerns about US tariffs.
Pets at Home gained 2.52% after full-year results met expectations, with strong growth in its veterinary division offsetting retail softness.
Intermediate Capital Group rose 1.49% as takeover talks with GlobalData remained live, with the target company extending its deadline to conclude discussions.
Softcat added 0.73% after raising its full-year profit outlook on the back of a stronger-than-expected third quarter.
Reporting by Josh White for Sharecast.com.
Market Movers
FTSE 100 (UKX) 8,726.01 -0.59%
FTSE 250 (MCX) 20,946.19 0.04%
techMARK (TASX) 4,819.60 -0.06%
FTSE 100 - Risers
Pershing Square Holdings Ltd NPV (PSH) 3,954.00p 2.01%
Unite Group (UTG) 835.00p 1.83%
Hikma Pharmaceuticals (HIK) 2,148.00p 1.70%
Intermediate Capital Group (ICG) 2,050.00p 1.49%
Flutter Entertainment (DI) (FLTR) 18,180.00p 1.34%
SEGRO (SGRO) 673.20p 1.23%
Fresnillo (FRES) 1,134.00p 1.07%
easyJet (EZJ) 561.40p 1.01%
F&C Investment Trust (FCIT) 1,091.00p 0.93%
Babcock International Group (BAB) 928.50p 0.92%
FTSE 100 - Fallers
Kingfisher (KGF) 285.30p -3.55%
Sainsbury (J) (SBRY) 284.00p -3.07%
Lloyds Banking Group (LLOY) 76.62p -2.37%
Anglo American (AAL) 2,184.50p -2.28%
Melrose Industries (MRO) 466.50p -2.10%
CRH (CDI) (CRH) 6,908.00p -1.88%
The Sage Group (SGE) 1,226.50p -1.80%
3i Group (III) 4,065.00p -1.74%
London Stock Exchange Group (LSEG) 11,410.00p -1.64%
Aviva (AV.) 610.00p -1.61%
FTSE 250 - Risers
Bloomsbury Publishing (BMY) 528.00p 6.56%
Bytes Technology Group (BYIT) 522.50p 5.84%
PayPoint (PAY) 717.00p 4.98%
Chemring Group (CHG) 473.50p 4.87%
Indivior (INDV) 900.00p 4.59%
Harbour Energy (HBR) 185.10p 4.52%
Ithaca Energy (ITH) 139.20p 3.88%
International Workplace Group (IWG) 189.40p 3.44%
C&C Group (CDI) (CCR) 159.80p 3.23%
Great Portland Estates (GPE) 339.00p 3.04%
FTSE 250 - Fallers
Oxford Nanopore Technologies (ONT) 124.10p -5.91%
Mobico Group (MCG) 27.90p -4.45%
Greggs (GRG) 2,052.00p -3.49%
TBC Bank Group (TBCG) 4,455.00p -3.36%
Close Brothers Group (CBG) 333.40p -3.25%
Ferrexpo (FXPO) 56.80p -3.24%
Pagegroup (PAGE) 263.40p -2.65%
Lion Finance Group (BGEO) 6,545.00p -2.46%
Alpha Group International (ALPH) 3,000.00p -2.44%
AO World (AO.) 102.20p -2.29%