- Currys
- 04 September 2025 17:53:23
Source: Sharecast
The FTSE 100 index rose 0.42% to close at 9,216.87 points, while the FTSE 250 advanced 0.76% to 21,474.68 points.
“The FTSE 100 pushed ahead as bond markets calmed down and the focus shifted to US jobs data,” said AJ Bell investment director Russ Mould.
Patrick Munnelly at TickMill also noted that “UK stocks saw a slight increase on Thursday, driven by advancements in consumer staples and utility shares, as investors evaluated corporate reports.
“Miners of precious metals declined as they mirrored the drop in gold prices, with Fresnillo down by 1.6%.”
Airline shares lagged after Jet2 issued a downbeat update, keeping pressure on the travel sector despite the broader market gains.
Mould said: “Airlines were under pressure in London as investors reacted to Jet2’s bundle of bad news.
“Guidance that full-year earnings will be at the lower end of market forecasts has wiped out Jet2’s share price gains so far this year.
“It’s a disappointing setback for the business and has dragged down shares in other airlines including easyJet and Wizz Air.”
In currencies, sterling was last down 0.13% on the dollar to trade at $1.3426, while it edged 0.07% higher against the euro, changing hands at €1.1537.
US jobs data comes in weaker than expected, UK construction still contracting
US economic data pointed to a cooling labour market and mixed signals on growth, while Europe continued to grapple with weak construction activity and slower outlooks.
“Ahead of non-farm payrolls on Friday, sharply lower job openings across the Atlantic suggested a weakening in the labour market which could push the Federal Reserve to cut interest rates more aggressively,” Mould added.
Private payrolls stateside rose by 54,000 in August, ADP reported, falling short of forecasts for 75,000.
Hiring was concentrated in medium-sized firms and the services sector, while year-on-year pay growth reached 4.4% for job-stayers and 7.1% for job-changers.
Separately, initial jobless claims rose by 8,000 to 238,000, the highest since June, underlining the softening backdrop the Federal Reserve had flagged as grounds for potential rate cuts.
Trade figures added to the pressure, with the US goods deficit widening sharply to $103.6bn in July, well above expectations, as imports surged 7.1% and exports edged lower.
Businesses were seen front-loading inventories to stay ahead of new tariffs.
At the same time, survey data pointed to steady but moderating momentum in services.
The S&P Global US services PMI came in at 54.5, below July’s 55.7 but still consistent with a 2.4% annualised growth rate in the third quarter, according to S&P Global’s Chris Williamson.
The ISM services index offered a more upbeat view, rising to 52.0 from 50.1, though respondents flagged tariffs as an emerging headwind.
Bradley Saunders at Capital Economics said the data matched “the generally positive mood around the economy’s growth prospects in the third quarter,” but cautioned that inflation pressures tied to tariffs persist.
On home shores, the UK construction sector remained in contraction despite a slight improvement in the August PMI to 45.5 from 44.3.
“Activity in Britain's construction industry decreased for the eighth consecutive month in August, marking its most extended slump since 2020,” said Munnelly.
Civil engineering activity fell at its fastest pace since 2020 and housebuilding also weakened.
Tim Moore at S&P Global said construction has endured “the longest continuous downturn since early-2020,” while optimism among firms slipped to its lowest level since late 2022.
A Bank of England survey also showed that British companies noted a slight increase in inflation expectations for the coming year, according to Munnelly.
Car registrations also dipped, down 2% year-on-year in August to 82,908 units as fleet demand softened.
Battery electric vehicles, however, rose nearly 15% to a record 26.5% market share, supported by government incentives.
Across the eurozone, construction activity contracted for an eighth month, though the pace of decline slowed.
The HCOB construction PMI rose to 46.7 from 44.7, with France showing notable improvement but Germany and Italy still weak.
HCOB economist Norman Liebke said the sector’s outlook remained “gloomy” despite signs of stabilisation.
Meanwhile, Germany’s Ifo Institute cut its growth forecast to 0.2% this year, warning that US tariffs continue to weigh on activity and that government support measures may only lift output from 2026.
“If economic policy remains at a standstill, there is a risk of more years of economic paralysis,” Ifo’s Timo Wollmershäuser cautioned.
Currys leads retailers higher, airlines in descent
On London’s equity markets, Currys surged 15.7% after the electricals retailer hailed a “strong” start to the year, launched a £50m share buyback, and reported a 3% increase in group sales over the 17 weeks ended 30 August.
Mould said: “Electronics retailer Currys continues to shine as it defies the wider gloom on the high street.
“This strategy has helped support robust trading against a difficult backdrop as the company enjoys market share gains in its UK and Nordics business and expands in the business-to-business category.”
Other retailers were in demand, with Next up 2.3%, Kingfisher 1.5%, JD Sports 1.4%, and Marks & Spencer 1.1%.
Genus jumped 10.4% after the animal genetics group posted a sharp rise in profits, highlighted “substantial strategic progress” over the year, and announced a positive update on its China joint venture.
Munnelly pointed out that “the company is accelerating its strategic collaboration with Beijing Capital Agribusiness, receiving a $160m payment.”
Lloyds Banking Group advanced 2.1% after the Financial Times reported that the lender plans to overhaul its performance management system under chief executive Charlie Nunn, potentially targeting 3,000 staff for dismissal.
Munnelly noted that “major bank stocks also increased, with Lloyds seeing a 1.2% rise.
“Reports indicate that the bank is contemplating the potential termination of around 3,000 employees deemed to be within the lowest 5%.”
Grafton Group rose 0.3% after it held guidance and unveiled a £25m buyback alongside a 19% profit rise.
Advertising giant WPP gained 1.1% as French peer Publicis lifted sentiment, while Alfa Financial Software climbed 8.1% after Shore Capital praised its “exceptionally strong” interim results.
On the downside, airlines were under pressure after Jet2 warned that annual earnings would be at the lower end of forecasts and cut its winter capacity, sending its shares down 12.5%.
EasyJet lost 4.2%, while Wizz Air and IAG slipped 0.8% and 0.3% respectively.
Other fallers included Entain, down 1.9% after HSBC cut its rating to ‘hold’, and Hilton Food Group, off 0.6% after RBC slashed its price target following mixed interim results.
Dividend trades also weighed, with Admiral falling 2.3%, Hammerson 2.3%, Ithaca Energy 5.3%, Derwent London 1.6%, Hochschild Mining 3.5%, and Rathbones 1.3%.
Reporting by Josh White for Sharecast.com.