Source: Sharecast
The FTSE 100 index edged up 0.11% to close at 8,811.04 points, while the FTSE 250 slipped 0.23% to 21,069.38 points.
In currency markets, sterling was last up 0.28% on the dollar to trade at $1.3592, while it dipped 0.05% against the euro, changing hands at €1.1863.
“London benchmarks pared earlier losses and turned modestly positive on Thursday following a reported phone call between Chinese president Xi Jinping and US president Donald Trump, which hinted at a potential easing of trade tensions,” said TickMill market strategy partner Patrick Munnelly.
“Meanwhile, silver surged past the critical $35 mark, reaching a 13-year high.
“According to Chinese state media, Xi and Trump spoke by phone on Thursday amid escalating tensions over critical minerals, which had threatened an already fragile trade truce.”
Munnelly said the call was expected to allow Trump to present a “more optimistic outlook” on US-China relations, potentially reducing the risks of economic decoupling between the two nations - one of the key drivers behind increased investment in precious metals.
“The pound climbed to a new high [for] 2025, supported by weak US economic data and assertive remarks from ECB president Christine Lagarde, both of which are likely to further bolster GBP-USD.
“Disappointing trade figures and rising unemployment claims in the US have heightened concerns about slowing growth, exacerbated by underwhelming ADP employment and ISM non-manufacturing reports earlier in the week.
“Market forecasts now suggest nearly 60 basis points in Federal Reserve rate cuts by December, up from just under 50 basis points before the ADP data release.”
UK construction sector stabilising, ECB cuts rates as expected
In economic news, the UK construction sector showed tentative signs of stabilising, as the S&P Global purchasing managers’ index (PMI) for May rose to 47.9, up from April’s 46.6 and ahead of expectations.
Although still below the neutral 50.0 threshold indicating contraction, the reading marked the slowest decline since January.
Activity remained weak across all major segments, particularly housebuilding, but optimism improved on hopes that interest rates may soon begin to fall.
Job cuts in the sector accelerated to their fastest pace since August.
“The construction sector continued to adjust to weaker order books in May, which led to sustained reductions in output, staff hiring and purchasing,” said Tim Moore, economics director at S&P Global Market Intelligence.
“However, the worst phase of spending cutbacks may have passed as total new work fell at a much slower pace than the near five-year record in February.
“Output growth expectations recovered to the highest so far in 2025.”
In the eurozone, the European Central Bank cut its key deposit rate by 25 basis points to 2.0% - its eighth cut in the current cycle - after inflation fell to 1.9% in May, below the ECB’s 2% target.
The bank revised down its inflation forecasts for 2025 and 2026 and projected GDP growth to gradually recover to 1.3% by 2027.
However, ECB president Christine Lagarde warned that “significant uncertainty” remained, particularly due to global trade tensions.
Meanwhile, producer prices across the bloc dropped 2.2% in April, driven by a sharp 7.7% fall in energy prices, marking the steepest monthly decline in over a year.
Eurozone construction activity worsened in May, with HCOB’s PMI falling to 45.6.
New orders and employment declined across the region, weighed down by deepening contractions in France and Germany.
Italy remained the exception, recording growth for a third consecutive month.
Germany’s factory orders rose unexpectedly by 0.6% in April, defying forecasts of a decline.
The gain was driven by a 21.5% surge in large-scale tech orders and stronger demand for transport and metal goods.
However, orders in key sectors such as machinery, pharmaceuticals and electrical equipment declined, while overall foreign demand slipped.
Across the Atlantic, jobless claims in the United States rose to 247,000 last week - the highest since October - suggesting some softening in the labour market.
At the same time, continuing claims eased and the insured unemployment rate dipped to 1.2%.
Separate figures showed that labour costs surged at a 6.6% annualised rate in the first quarter, above earlier estimates, while productivity declined more sharply than expected, signalling cost pressures even as economic growth slows.
Dr Martens surges on outlook, Wizz Air descends
On London’s equity markets, Dr Martens soared 23.6% after the bootmaker said it expected full-year results for 2026 to meet guidance.
The company, under new chief executive Ije Nwokorie, announced a turnaround strategy focused on reducing discounting in the Americas and EMEA regions.
It also confirmed it would hold prices steady despite US tariffs, with most of its seasonal stock already shipped.
“Dr Martens is on the front foot with a strategy that seeks to kick out the troubles of old and return the business to profitable growth,” said Russ Mould, investment director at AJ Bell.
“This should shift the market’s focus from earlier problems in the US and a sharp drop in earnings to a business intent on regaining its power.
“It has laid out ambitions to get back on top - turning those dreams into reality might not be easy.”
Mining stocks were strong performers, supported by commodity optimism.
Antofagasta gained 5.27%, Glencore rose 2.1%, and Anglo American added 2.69%.
Wise climbed 5.26% after announcing a plan to shift its primary listing to the US, citing strategic benefits and stronger growth prospects.
The fintech also posted a 17% rise in underlying pre-tax profit to £282m and a 15% increase in revenue to £1.21bn.
Student housing firm Empiric jumped 6.06% after confirming it had received a takeover approach from rival Unite, which fell 2.16%.
The proposal valued Empiric at 107p per share and due diligence has commenced.
Defence contractors Chemring and QinetiQ rose 3.61% and 4.26%, respectively, as NATO leaders convened to discuss higher military spending.
Consumer goods giant Reckitt Benckiser advanced 1.27% following an upgrade to ‘outperform’ at Bernstein.
On the downside, Wizz Air plunged 25.87% after annual operating profit dropped 61% to €167.5m, missing analyst expectations due to grounded aircraft and rising costs.
“Despite the unproductivity of a grounded fleet, we successfully delivered a second consecutive year of profitability,” said chief executive officer Jozsef Varadi.
“We have the benefit of more than a year of experience operating under these unique circumstances - conditions airlines would never experience when demand exceeds supply.”
The company did not provide guidance for 2026, citing limited visibility across its trading seasons.
Sector peers also retreated, with IAG down 1.43% and easyJet off 0.78%.
Outsourcing group Mitie slumped 12.41% after agreeing to acquire Marlowe, which rose 7.14%, in a £366m deal.
Elsewhere, CMC Markets fell 17.4% following disappointing full-year earnings.
WPP, Sainsbury’s and Vodafone declined 4.09%, 3.48%, and 3.29%, respectively, as all three traded ex-dividend.
Reporting by Josh White for Sharecast.com.
Market Movers
FTSE 100 (UKX) 8,811.04 0.11%
FTSE 250 (MCX) 21,069.38 -0.24%
techMARK (TASX) 4,924.11 0.43%
FTSE 100 - Risers
Antofagasta (ANTO) 1,947.50p 5.27%
Fresnillo (FRES) 1,325.00p 4.99%
Babcock International Group (BAB) 1,105.00p 3.66%
Smith & Nephew (SN.) 1,117.00p 3.19%
British American Tobacco (BATS) 3,497.00p 3.13%
Anglo American (AAL) 2,293.50p 2.69%
Experian (EXPN) 3,810.00p 2.36%
Imperial Brands (IMB) 2,901.00p 2.04%
Reckitt Benckiser Group (RKT) 5,110.00p 1.51%
Glencore (GLEN) 292.85p 1.51%
FTSE 100 - Fallers
Diageo (DGE) 1,953.50p -4.19%
WPP (WPP) 557.60p -4.09%
Sainsbury (J) (SBRY) 274.20p -3.52%
Vodafone Group (VOD) 73.50p -3.14%
Pershing Square Holdings Ltd NPV (PSH) 3,850.00p -2.39%
Unite Group (UTG) 837.00p -2.16%
Melrose Industries (MRO) 468.10p -1.74%
Whitbread (WTB) 2,840.00p -1.70%
Rolls-Royce Holdings (RR.) 876.40p -1.66%
NATWEST GROUP (NWG) 522.00p -1.47%
FTSE 250 - Risers
Dr. Martens (DOCS) 75.40p 25.77%
Hochschild Mining (HOC) 311.60p 9.03%
Empiric Student Property (ESP) 103.20p 6.06%
Syncona Limited NPV (SYNC) 83.50p 5.22%
Hammerson (HMSO) 290.00p 4.54%
Quilter (QLT) 156.90p 3.98%
QinetiQ Group (QQ.) 572.00p 3.81%
Chemring Group (CHG) 574.00p 3.61%
Ocean Wilsons Holdings Ltd. (OCN) 1,470.00p 3.16%
Abrdn (ABDN) 179.70p 2.86%
FTSE 250 - Fallers
Wizz Air Holdings (WIZZ) 1,207.00p -27.90%
CMC Markets (CMCX) 235.00p -17.40%
Mitie Group (MTO) 138.60p -13.16%
Discoverie Group (DSCV) 667.00p -8.88%
THG (THG) 24.12p -4.74%
Greggs (GRG) 1,983.00p -4.18%
Paragon Banking Group (PAG) 869.00p -4.13%
Hill and Smith (HILS) 1,822.00p -3.73%
Pets at Home Group (PETS) 263.40p -3.59%
Energean (ENOG) 871.00p -3.32%