Stocks in London were mixed at Thursday midday ahead of a US producer price index reading and the initial weekly jobless claims data, while New York stocks are expected to open in the red.
Among individual shares, ex-dividend stocks put pressure on the FTSE 100. National Grid and JD Sports, on the back of strong earnings and eye-grabbing sector news, respectively, pushed higher.
The FTSE 100 index was up 7.16 points, 0.1%, at 8,592.17. The FTSE 250 was down 11.03 points, 0.1%, at 20,808.24, and the AIM All-Share was down 0.49 of a point, 0.1%, at 731.13.
The Cboe UK 100 was up 0.3% at 858.27, the Cboe UK 250 was flat at 18,207.47, and the Cboe Small Companies was down 1.3% at 15,722.20.
In Paris, the CAC 40 was down 0.2%, while Frankfurt’s DAX 40 lost 0.1%.
According to the Office for National Statistics, UK gross domestic product is estimated to have grown by 0.7% in the quarter from January to March. This is accelerated from a 0.1% growth in the prior quarter and outperforms an FXStreet-cited consensus for 0.6% growth.
‘The jump in GDP will likely be short-lived, however. Trade uncertainty will likely hit its peak in Q2-25. Exporters will likely see reduced demand as well from higher US tariffs and weaker global demand. Inventories piled up over the last two quarters will also start to unwind more fully, dragging on GDP. Crucially, higher unemployment and a drop off in real wage growth won‘t help household spending much either, as firms continue to tighten payrolls and pass on payroll cost increases,’ Deutsche Bank analyst Sanjay Raja commented.
The pound was quoted down at $1.3289 early on Thursday afternoon in London, compared to $1.3302 at the equities close on Wednesday. However, it had traded around the $1.3270 mark before the UK data was released. The euro stood lower at $1.1197, against $1.1208. Against the yen, the dollar was lower at JP¥145.98 compared to JP¥146.43.
The eurozone economy advanced 0.3% on-quarter at the start of the year, numbers from Eurostat showed, picking up from 0.2% in the fourth quarter of 2024.
In New York, the Dow Jones Industrial Average is called down 0.3%, the S&P 500 0.5% lower and the Nasdaq Composite down 0.7%.
Brent oil was quoted lower at $63.86 a barrel in London on Thursday afternoon, from $66.01 late Wednesday.
ActivTrades analyst Ricardo Evangelista commented: ‘The primary driver behind this morning’s losses is the possibility of oversupply in the market. This sentiment was heightened by comments from President Trump earlier on Thursday, suggesting that a deal with Iran concerning the country‘s nuclear programme is close. If confirmed, such an agreement could lift sanctions on Tehran’s oil exports, paving the way for its re-entry into global markets.’
Keeping a lid on shares in oil majors Shell and BP, the duo went ex-dividend, meaning new buyers do not qualify for the latest payout. Shell fell 2.0% and BP lost 2.9%.
Pharmaceutical firm GSK fell 0.9%. It also went ex-dividend.
But on the up, AstraZeneca added 1.4%, recovering some lost ground amid a tough start to the week for pharma shares.
National Grid rose 3.6% as it reported improved annual profit and earmarked total cumulative capital investment of around £60 billion over the five years to financial 2028/29.
Pretax profit rose 20% to £3.65 billion in the year to March 31 from £3.05 billion a year prior.
JD Sports Fashion shares were 4.6% higher amid some sector M&A developments stateside.
Dick’s Sporting Goods has agreed to acquire Foot Locker in a $2.4 billion deal, creating a ‘global leader in the sports retail industry’.
Dick’s also reported first-quarter earnings, which showed comparable sales growth of 4.5%.
Elsewhere, Watches of Switzerland rose 4.2%. It expects to report a full year performance in line with market expectations. Revenue in the year to April 27 advanced 7% to £1.65 billion, the luxury watches seller said in a trading statement.
‘As we enter FY26, although we are mindful of the uncertain macroeconomic backdrop, including potential US tariff changes, we remain confident in the strong fundamentals of the luxury watch category and our differentiated business model in the underdeveloped US market,’ it said.
Elsewhere, DSW Capital advanced 20% as it expects annual earnings to top the market view, amid a boost from some ‘beat the budget’ M&A activity.
The provider of professional services via the Dow Schofield Watts and DR Solicitors brands expects to report network revenue for the year ended March 31 of £25.8 million, a record, jumping 61% from £16.0 million. It will be an outcome ‘ahead of market expectations’. Adjusted earnings before interest, tax, depreciation and amortisation are expected to have surged to £1.8 million from £600,000, an outcome also ahead of forecasts.
Earnings were boosted by a rush to complete deal-making before the UK budget last year.
‘The global economic disruption may create a more challenging M&A market in the year ahead, but we are committed to turning those challenges into opportunities in recruitment, which slowed in FY25 due to the abnormally high activity levels. Our reliance on M&A revenues, however, is much reduced by the addition of DR Solicitors with its more predictable revenues, and we have a more balanced business as we enter FY26,’ Chief Executive Officer Shru Morris said, looking ahead.
Gold was quoted down at $3,176.16 an ounce midday Thursday, against $3,184.56 late Wednesday.
Still to come on Thursday is a US producer price index reading at 1330 BST.
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