The FTSE 100 edged lower on Thursday despite a strong batch of corporate earnings, while the FTSE 250 reached a record closing high, supported by sharp gains in WPP and easyJet.
The FTSE 100 finished 20.41 points, or 0.2%, lower at 10,867.89, while the FTSE 250 gained 62.79 points, or 0.3%, to a record close of 24,695.42. The AIM All-Share added 0.7%.
Fresh data showed the UK’s construction sector remained in contraction during July, although conditions improved. The S&P Global UK Construction PMI rose to 44.7 from 38.4, its highest reading in four months, but remained below the 50-point threshold separating expansion from contraction.
In Europe, weaker-than-expected retail sales weighed on sentiment, while Wall Street traded mixed ahead of Friday’s closely watched US non-farm payrolls report, which investors expect to provide fresh clues on the Federal Reserve’s interest rate path.
Among the blue chips, Diageo climbed 5.6% after unveiling a new strategic plan that includes US$1 billion of cost savings and forecasting a return to sustainable earnings growth.
Admiral gained 5.2% after reporting first-half results and saying pricing improvements in its motor insurance business should support stronger profits in the second half.
Persimmon rose 2.9% after reporting better-than-expected interim earnings and maintaining guidance for around 12,500 home completions this year.
Ex-dividend trading weighed on several heavyweight stocks, with Relx, Rolls-Royce and AstraZeneca among the largest drags on the FTSE 100.
On the FTSE 250, WPP soared 29% after reaffirming its full-year outlook and reporting an improving second quarter, while easyJet rose 2.8% after agreeing to a 715p-per-share takeover by Apollo following the withdrawal of rival bidder Castlelake.
Looking ahead, investor attention now turns to Friday’s US employment report, with July non-farm payrolls expected to play a key role in shaping expectations for the Federal Reserve’s next interest rate decision.
