FTSE 100 close: London dips after disappointing US jobs data while 250 continues strong run
London’s FTSE 100 ended the week in the red while the more domestically focused 250 index continued its strong gains.
The capital’s premier bluechip index made gains early on, being around a 0.44 per cent up by 9am at 7,479.30. By midday it was hovering in the red, at around -0.06 per cent, and closed more than 0.39 cent down, at 7,417.73.
The FTSE 250, which is more domestically focused than the premier FTSE 100 index, surged six per cent over the week, with the majority of the gains made over the past two days.
It ended around 1.05 per cent up lifted in particular by Wizz Air which whose shares rose by 11 per cent.
There were relatively few corporate results on Friday, following a busy week, after London’s FTSE 100 jumped at the close on Thursday in a rally fuelled by the Bank of England holding interest rates in line with expectations.
After midday, FTSE dipped further following disappointing US jobs figures, while Sterling made gains against a weaker dollar.
The biggest risers on FTSE 100 included Ocado, up more than six per cent, and BT, which was up by more than three per cent.
Currys’ share price was up almost five per cent, following it confirming the £175m sale of its Greek and Cyprus arm, just two years after it took on the business.
Sterling picked up ground against the dollar after data showing U.S. job growth slowed more than expected in October as strikes by the United Auto Workers (UAW) union against Detroit’s “Big Three” car makers depressed manufacturing payrolls, while wage inflation cooled, pointing to an easing in labour market conditions.
Firms added just 150,000 jobs in the US last month, below the expected 180,000, as the economy appeared to cool.
This morning, the latest British Retail Consortium-Sensormatic IQ Footfall Monitor, showed UK footfall fell 5.7 per cent year-on-year in October, compounding September’s 2.9 per cent decline.
Within that, high street footfall was down 4.6 per cent, while retail parks and shopping centres saw declines of 4.3 per cent and 7.3 per cent, respectively.
This comes before the so-called ‘golden quarter’ of retail in the run-up to Christmas, in which many outlets will look to cash in on Brits splashing the cash on big purchases.
Helen Dickinson, chief executive of the British Retail Consortium, said: “Umbrellas were up as heavy rainfall descended across the UK in October, leading many shoppers to stay at home.
“As inflationary pressures on households begin to ease, some people are shopping around slightly less, braving the rain only to make their final purchases.”
“While consumer confidence may be higher than 2022, it is still very weak. The economic landscape remains tough, with input prices and cost pressures above normal levels.”
Andy Sumpter, EMEA retail consultant at Sensormatic Solutions, said: “Shopper traffic regionally [was] impacted by Storm Babet, which delivered the most severe and widespread disruptive weather of the year to date.
“The ongoing cost-of-living pressure continues, despite inflationary easing.
“As we head into the critical Christmas purchasing period, the focus [for retailers] must be on optimising their online presence or creating engaging experiences that can entice passing trade in store to be converted into sales.”