Source: Sharecast
The FTSE 100 index slipped 0.2% to 9,120.31, while the FTSE 250 declined 0.17% to 22,117.98.
Sterling also weakened, falling 0.66% on the dollar to trade at $1.3421, and 0.43% against the euro, changing hands at €1.1447.
AJ Bell investment director Russ Mould said the FTSE 100 “lost some ground as investors took stock after another breathless week for the markets,” adding that signs of fragile consumer confidence overshadowed positive retail sales data.
Patrick Munnelly, partner at TickMill, noted that London’s benchmarks retreated from recent highs despite being on track for a fifth consecutive weekly gain.
He highlighted that “construction and materials sectors experienced a downturn, falling by 1.8%, notably impacted by Marshalls, which plummeted by 21.6% due to a disappointing forecast for full-year adjusted pre-tax profits.”
Precious metal miners also weighed on the index, with declines of up to 2.8%.
UK retail sales rebound, but consumer confidence declines
In economic news, UK retail sales rebounded in June, though the recovery fell short of expectations.
Figures from the Office for National Statistics showed sales rose 0.9% month-on-month, following a sharp 2.8% drop in May, which was revised down from a 2.7% fall.
Economists had anticipated growth of 1.2%.
Food store sales increased 0.7% after a steep 5.4% fall in May, helped by warmer weather that boosted supermarket trading and drink sales.
Hannah Finselbach, senior statistician at the ONS, said: "Following a poor May, it was an improved month for retail sales with growth across all main sectors.
“The warm weather in June helped to brighten sales.”
Consumer confidence, however, declined in July.
The GfK consumer confidence barometer fell to -19 from -18 in June, significantly below the -13 recorded a year ago.
While sentiment around personal finances remained steady, expectations for the general economic situation deteriorated.
Neil Bellamy, consumer insights director at GfK, warned that “speculation over possible tax rises in the Autumn Budget, and price pressure contributing not just to higher inflation already but also to the likelihood of worse inflation to come, is worrying.”
On the continent, German business sentiment edged higher in July but failed to meet expectations.
The Ifo business climate index rose slightly to 88.6 from 88.4 in June, below forecasts for 89.0.
“The upturn in the German economy remains sluggish,” said Ifo Institute president Clemens Fuest.
Across the Atlantic, US durable goods orders fell 9.3% in June to $311.8bn, partially reversing May’s 16.5% surge.
Excluding transportation, orders rose 0.2%, while shipments of durable goods posted a seventh consecutive monthly gain of 0.5%.
Banking stocks rise, Marshalls slumps after profit warning
On London’s equity markets, banking stocks were among the day’s risers.
NatWest Group climbed 3.51% after reporting an 18% rise in pre-tax profit to £3.6bn for the six months to 30 June, beating analyst forecasts.
The bank announced a £750m share buyback and increased its dividend by 58% to 9.5p per share.
Lloyds Banking Group also gained 1.28% following solid results on Thursday.
Close Brothers Group surged 4.91% after agreeing to sell its Winterflood execution services unit to Marex Group for £103.9m, part of a strategic shift toward its core lending business.
Wizz Air Holdings soared 11.45% on an upgrade to ‘overweight’ by Barclays, while IT services provider Softcat rose 1.06% after Panmure Liberum upgraded the stock to ‘buy’.
“Softcat is well-positioned to take advantage of ongoing growth in cloud, AI, and cybersecurity,” the brokerage said.
On the downside, Marshalls slumped 20.64% after issuing a profit warning linked to weakness in its landscaping products business, dragging down the broader construction sector.
Travis Perkins lost 2.25%, while property portal Rightmove fell 1.84% despite reporting higher first-half profit and revenue.
Jupiter Fund Management declined 2.51% as it warned of ongoing challenges despite stronger-than-expected underlying pre-tax profit.
Mould at AJ Bell added that markets remain focused on global trade developments.
“The next big focus for the market is whether a deal can be struck between the EU and Trump administration on trade - which would remove one of the biggest remaining uncertainties ahead of next week’s tariff deadline,” he said.
Reporting by Josh White for Sharecast.com.
Market Movers
FTSE 100 (UKX) 9,120.31 -0.20%
FTSE 250 (MCX) 22,117.98 -0.17%
techMARK (TASX) 5,260.30 0.20%
FTSE 100 - Risers
NATWEST GROUP (NWG) 519.20p 3.51%
CRH (CDI) (CRH) 7,344.00p 3.29%
Ashtead Group (AHT) 5,134.00p 2.03%
Entain (ENT) 998.60p 1.57%
Mondi (MNDI) 1,194.00p 1.40%
Centrica (CNA) 162.75p 1.37%
Beazley (BEZ) 901.00p 1.29%
Lloyds Banking Group (LLOY) 79.04p 1.28%
The Sage Group (SGE) 1,263.50p 1.24%
BT Group (BT.A) 222.70p 1.14%
FTSE 100 - Fallers
3i Group (III) 4,150.00p -2.67%
Informa (INF) 861.00p -2.49%
St James's Place (STJ) 1,158.00p -2.03%
Rightmove (RMV) 780.40p -1.84%
Fresnillo (FRES) 1,411.00p -1.54%
London Stock Exchange Group (LSEG) 10,090.00p -1.51%
Convatec Group (CTEC) 239.60p -1.48%
Rentokil Initial (RTO) 370.90p -1.46%
Glencore (GLEN) 318.25p -1.39%
Anglo American (AAL) 2,295.00p -1.33%
FTSE 250 - Risers
Wizz Air Holdings (WIZZ) 1,197.00p 11.45%
Close Brothers Group (CBG) 431.60p 4.91%
Auction Technology Group (ATG) 494.00p 3.46%
Oxford Nanopore Technologies (ONT) 210.00p 2.84%
Hays (HAS) 66.85p 2.77%
Burberry Group (BRBY) 1,366.00p 2.32%
Aston Martin Lagonda Global Holdings (AML) 84.85p 2.23%
Pagegroup (PAGE) 285.00p 1.86%
Senior (SNR) 202.00p 1.71%
NCC Group (NCC) 149.00p 1.64%
FTSE 250 - Fallers
Marshalls (MSLH) 209.50p -20.64%
JTC (JTC) 825.00p -4.95%
Hochschild Mining (HOC) 279.60p -3.45%
Vesuvius (VSVS) 354.80p -3.17%
Future (FUTR) 745.50p -2.87%
RHI Magnesita N.V. (DI) (RHIM) 2,930.00p -2.82%
Jupiter Fund Management (JUP) 131.80p -2.51%
Genuit Group (GEN) 395.00p -2.47%
ITV (ITV) 85.70p -2.39%
Travis Perkins (TPK) 564.50p -2.25%