London close: Stocks finish week on mixed note

London's stock markets closed with mixed results on Friday, reflecting a cautious mood as investors reacted to economic growth data out of China, as well as an improvement in UK retail sales.

The FTSE 100 index slipped 0.32% to end the session at 8,358.25 points, while the FTSE 250 inched up 0.23% to 21,149.58.

In currency markets, sterling was last up 0.22% on the dollar to trade at $1.3039, while it edged down 0.05% against the euro, changing hands at €1.2007.

“When all else fails, tech earnings can usually be relied upon to deliver good news,” said IG chief market analyst Chris Beauchamp.

“Somehow, Netflix continues to find new subscribers, and while the pace of new subscriber growth has slowed markedly, it still beat expectations, which is of course the most important thing in earnings reports.

“While the Dow is struggling, the Nasdaq and S&P 500 are up again, although the latter remains shy of yesterday’s fresh record.”

Beauchamp added that oil came into Friday’s session looking likely to form a low after recent losses, with sellers taking the opportunity to hit the commodity hard, driving it to a fresh two-week low.

“It was a different story for gold, which has hit yet another record high, driven by continued geopolitical worries, central bank buying and falling interest rates.

“2024 continues to be a banner year for gold bugs, with no sign of the gains being reversed yet.”

UK retail sales top forecasts in September, eurozone construction output rises

In economic news, UK retail sales in September exceeded expectations, with consumers increasing their spending on technology, according to the Office for National Statistics.

Sales volumes rose 0.3% month-on-month, surpassing forecasts of a 0.3% decline.

Though slower than August’s 1% growth, the September figures marked the highest sales index since July 2022.

Year-on-year, sales jumped 3.9%, the largest annual increase since February 2022.

The technology sector led the gains, while supermarkets saw a 2.4% decline.

Cooler weather also supported higher sales of clothing and footwear.

“Autumn led people to upgrade their wardrobe, as well as the last minute student dash for new computers, as the new academic year began,” said Kris Hamer, director of insight at the British Retail Consortium.

“Big ticket items, such as furniture and other household goods, continued to take a hit from some consumers, such as those saving for Christmas or preferring to spend on experiences.”

On the continent, eurozone construction output saw a modest 0.1% increase in August, following a 0.5% decline in July, according to Eurostat.

While building construction rebounded 0.9%, civil engineering production dropped by 2.1%.

Year-on-year, eurozone construction output fell 2.5%, marking the seventh consecutive month of annual declines.

The Netherlands posted the strongest growth, while Slovakia, Belgium, and Slovenia recorded the sharpest decreases.

Across the Atlantic, US housing starts dipped 0.5% in September to an annualised rate of 1.35 million, aligning with expectations.

Multi-family housing starts dropped 4.5%, while single-family home starts rose by 2.7%.

Building permits declined 2.9% to 1.42 million, with multi-family permits plunging 10.8%, missing forecasts.

Earlier in the day, fresh data showed China's economic growth slowing in the third quarter, with GDP rising 4.6%, slightly ahead of forecasts but down from the prior quarter's 4.7% growth.

Retail sales and industrial production both showed improvement, but house prices fell by 5.7% year-on-year, the fastest decline since May 2015, reflecting ongoing challenges in the real estate sector.

“We would downplay the importance of better-than-expected key economic indicators in September, given that the structural weakness in the property and household sectors remains largely unaddressed,” said Betty Wang, lead economist at Oxford Economics.

“We maintain our 2024 GDP growth forecasts at 4.8%.

“The recently-announced stimulus measures could cushion the downside risks to next year’s growth, but are unlikely to reverse the structural downturn.”

Future plummets on CEO departure, miners make broad gains

On London’s equity markets, British American Tobacco dropped 3.23%, despite the company reporting progress towards settling a multibillion-dollar lawsuit in Canada.

Media group Future plummeted by 19.26% after announcing that chief executive officer Jon Steinberg would step down next year to relocate to the US.

“Jon Steinberg was only appointed to the top role in April 2023 but he’s already handed in his notice, saying it’s time to move back to the US with his family,” said Russ Mould, investment director at AJ Bell.

“Future used to be a highly acquisitive business, snapping up titles to expand its empire of media assets which were then used as a platform to earn commission on product or service sales.

“The cost-of-living crisis and high interest rate environment knocked the company off track and it has been trying to regain momentum ever since.”

Mould noted that more recently, it had been shutting down the weaker parts of its business to save money and improve group margins, while at the same time trying to revive growth.

“Investors will be asking why Steinberg isn’t sticking around to see through this strategy - has he spotted problems down the line or has he simply been offered a better opportunity elsewhere?”

Bunzl saw a 0.94% decline following a downgrade to ‘neutral’ by Citi, which cited the stock's alignment with long-term valuation multiples.

Energy giant BP fell 0.1%, reversing earlier gains, after reports suggested it was considering selling a minority stake in its offshore wind business, as part of chief executive Murray Auchincloss’s shift away from renewables.

Meanwhile, housebuilders faced broad declines, with Taylor Wimpey down 1.87%, Barratt Redrow off 1.21%, Persimmon down 1.72%, and Bellway dropping 3.42%.

On the upside, miners provided a lift to the market.

Anglo American rose 1.8%, Glencore gained 1.45%, Antofagasta added 1.47%, and Rio Tinto was up 1%, supported by stronger commodity prices.

Fresnillo jumped 2.7%as gold prices reached a record high, surpassing $2,700 an ounce.

Elsewhere, Frasers Group edged up 0.49% after confirming its backing of a £191m takeover of N Brown by Joshua Alliance, as the company continued its strategic acquisitions, including its interest in luxury brand Mulberry.

Frasers, which owns 20.3% of N Brown, agreed to support the cash deal priced at 40p per share.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,358.25 -0.32%
FTSE 250 (MCX) 21,149.58 0.23%
techMARK (TASX) 4,810.79 -0.08%

FTSE 100 - Risers

Prudential (PRU) 673.40p 2.84%
Fresnillo (FRES) 703.00p 2.70%
Anglo American (AAL) 2,379.50p 1.80%
Antofagasta (ANTO) 1,829.00p 1.47%
Glencore (GLEN) 408.70p 1.36%
Sage Group (SGE) 1,040.50p 1.22%
Whitbread (WTB) 3,287.00p 1.20%
Centrica (CNA) 127.05p 1.15%
Rio Tinto (RIO) 4,995.50p 1.00%
DCC (CDI) (DCC) 5,245.00p 0.96%

FTSE 100 - Fallers

Smith (DS) (SMDS) 447.00p -3.41%
British American Tobacco (BATS) 2,640.00p -3.23%
Vistry Group (VTY) 968.50p -2.27%
Taylor Wimpey (TW.) 162.65p -2.05%
Next (NXT) 10,245.00p -2.01%
LondonMetric Property (LMP) 204.80p -1.82%
Barratt Redrow (BTRW) 485.10p -1.82%
Persimmon (PSN) 1,659.50p -1.72%
Melrose Industries (MRO) 441.90p -1.54%
British Land Company (BLND) 432.40p -1.41%

FTSE 250 - Risers

Fidelity China Special Situations (FCSS) 218.00p 5.06%
Bridgepoint Group (Reg S) (BPT) 347.60p 4.13%
Syncona Limited NPV (SYNC) 107.20p 3.68%
W.A.G Payment Solutions (WPS) 84.20p 2.93%
Ninety One (N91) 182.90p 2.87%
SSP Group (SSPG) 170.30p 2.78%
Energean (ENOG) 947.50p 2.77%
Baltic Classifieds Group (BCG) 327.50p 2.66%
Oxford Instruments (OXIG) 2,125.00p 2.66%
North Atlantic Smaller Companies Inv Trust (NAS) 3,940.00p 2.60%

FTSE 250 - Fallers

Future (FUTR) 794.50p -19.26%
CMC Markets (CMCX) 320.00p -5.33%
Bellway (BWY) 3,222.00p -3.42%
Watches of Switzerland Group (WOSG) 450.00p -2.85%
Crest Nicholson Holdings (CRST) 185.70p -2.11%
Bytes Technology Group (BYIT) 475.00p -2.06%
Pets at Home Group (PETS) 306.60p -1.98%
Alpha Group International (ALPH) 2,090.00p -1.88%
IntegraFin Holding (IHP) 376.00p -1.83%
Close Brothers Group (CBG) 384.20p -1.69%