|  Updated: 

FTSE 100 close: London markets measured after strong week

By:

Transport Reporter

Add as a preferred source on Google
Roberts warned that it has become much more difficult to hire people in the UK
Roberts warned that it has become much more difficult to hire people in the UK

London markets stayed flat throughout Friday after a strong week, closing slightly higher and extending earlier gains caused by lower than expected inflation.

The bluechip FTSE 100 was measured throughout the day and closed in the green at 7,658.53, while the midcap FTSE 250, which is more aligned with the health of the UK economy, had fallen 0.72 per cent by late afternoon.

Office for National Statistics officials said on Wednesday that the rate of inflation fell to 7.9 per cent in June, down from 8.7 per cent in May.

The better than expected figures had boosted markets, with the capital’s index set for its best weekly performance in nearly four months.

Official data on Friday morning showed retail sales grew 0.7 per cent on the back of Junes’ record heatwave, with supermarkets, department stores and furniture sellers all benefitting from increased consumer spending.

However spirits were dampened by a slump in consumer confidence on the back of higher interest rates, as per GFK’s index, which noted a six point drop in July – reversing the gains seen in June.

Amid a mix of sectors, top risers on the FTSE 100 included equipment rental firm Ashtead Group at 1.67 per cent and investment service Hargreaves Lansdown at 1.16 per cent.

Communications firm WPP suffered the biggest fall, slumping 4 per cent by late afternoon, with insurance giant Prudential just behind at -3 per cent.

Flutter Entertainment, who are owned by the American FanDuel sports betting group dropped 1.36 per cent in early trading after the previous days’ fall in the US market – which was hit by poor performances from Tesla and Netflix.

Commodity giant Glencore was also in the red through the day on the back an announcement that production of a variety of commodities had dipped in the first half.

Danni Hewson, AJ Bell head of financial analysis, said “the impressive resilience of Britons’ spending appears to have been boosted by last month’s hot sunny weather, but the more unsettled weather in July has been matched by a drop in consumer confidence as the clouds of surging mortgage costs and stubborn inflation draw in.”

Despite rising prices now being an unfortunate norm, Hewson said it was encouraging that consumers were shelling out despite the dip in confidence. The cost-of-living crisis has now morphed into “a cost-of-interest crisis,” he explained.

Over on the FTSE 250, aerospace and defence group Babcock International saw strong gains as shares jumped 3.37 per cent on an announcement yesterday that the war in Ukraine had boosted its revenues.

Oil and gas producer Ithaca Energy topped the charts, with shares at 4.53 per cent by close.

Ticket seller Trainline saw the biggest fall, down 4.21 per cent amid fresh industrial action on Britain’s railways.