London Markets Snap Losing Streak Amid Cautious Trading
The FTSE 100 index broke its five-day decline on Thursday, posting modest gains despite mixed signals from across the Atlantic. The benchmark index closed up 20.24 points, or 0.2%, at 9,527.65, though it had reached as high as 9,593.83 during the trading session.
US Jobs Data Creates Fed Uncertainty
Market enthusiasm was tempered by conflicting employment figures from the United States, which suggested interest rates might remain unchanged. According to the Bureau of Labour Statistics, nonfarm payroll employment increased by 119,000 in September, significantly exceeding the FXStreet-cited forecast of 50,000.
However, the positive headline number concealed underlying concerns. July and August figures were revised downwards by a total of 33,000, while the unemployment rate edged up to 4.4% in September from 4.3% the previous month. Analysts had expected the rate to remain unchanged.
Financial institution ING suggested these mixed signals would likely keep the Federal Reserve in a hawkish stance, particularly given the scarcity of economic data ahead of the December 10 meeting.
London's Standout Performers
Games Workshop emerged as the day's biggest winner, soaring 13% following a better-than-expected trading update. The Nottingham-based fantasy game manufacturer expects pre-tax profit for the six months ending November 30 to reach at least £135 million, representing a 6.5% increase from the previous year.
Jefferies analyst Andrew Wade described the performance as outstanding, noting that core revenue growth of 15% substantially exceeded his 1.5% projection. Core revenue is expected to reach at least £310 million, though licensing revenue declined to approximately £16 million.
Halma joined the rally, jumping 9.2% after raising its full-year guidance. The Amersham-based safety products manufacturer now anticipates mid-teens organic constant currency revenue growth, upgraded from previous low double-digit expectations. Citi analyst Avinash Mundhra believes consensus forecasts could rise 3% to 5% following what he termed encouraging progress.
Broader Market Movements
The FTSE 250 experienced a slight decline, ending 27.89 points lower at 21,384.35, while the AIM All-Share rose marginally by 0.52 points to 741.20.
Defence stocks showed resilience with BAE Systems gaining 1.8%, recovering some ground lost on Wednesday amid news of a US peace proposal for the Russia-Ukraine conflict. JP Morgan analysts considered the previous day's selloff unjustified, suggesting it presented a compelling entry point for the sector.
Not all companies shared in the positive sentiment. JD Sports fell 3.9% after tempering its profit outlook, anticipating full-year pre-tax profit would land at the lower end of market expectations between £853 million and £888 million. The sportswear retailer cited incrementally weaker macroeconomic and consumer data in key markets.
Global Market Context
European counterparts showed strength with Paris's CAC 40 rising 0.3% and Frankfurt's DAX 40 firming 0.5%. In New York, markets were higher at the London close, with the Dow Jones Industrial Average up 0.3%, while both the S&P 500 and Nasdaq Composite gained 0.6%.
Currency markets saw sterling strengthen to $1.3091 at the London equities close, compared to $1.3076 on Wednesday. The euro stood slightly lower at $1.1534, while the dollar traded higher against the yen at 157.46 yen.
Technology giant Nvidia rose 0.7% after reporting better-than-expected third-quarter earnings and outlook, easing investor concerns about an artificial intelligence bubble. Chief executive Jensen Huang noted that sales of Blackwell chips are off the charts and cloud GPUs are sold out.
Looking ahead, Friday's economic calendar features UK retail sales, public sector net borrowing figures, and flash composite PMI readings. Investors will also monitor retail sales data from Canada and the Michigan consumer sentiment index in the US.
