London close: FTSE ends flat as JD Sports tumbles on guidance downgrade

20th Aug 2026 16:20

(Sharecast News) - London stocks finished flat on Thursday as bond yields ticked higher again after the previous session's falls, and with JD Sports under the cosh after a guidance downgrade.

The FTSE 100 closed steady at 10,748.16. Meanwhile, bond yields crept up again, having dropped on Wednesday after the Treasury said it would double the size of its long-term government debt repurchases.

Neil Wilson, UK investor strategist at Saxo Markets, said: "Whilst Treasury seemingly tried to signal the market it won't tolerate higher yields, what is essentially a tinkering of maturity schedules is not a fix for the key underlying reasons why yields have broken out higher - namely the fiscal and inflation risks that have set term premia on fire, even if it does improve liquidity at the long end of the curve.

"A sharp move higher in oil prices, with Brent breaking out of its range to $94.50, has underlined near-term inflation pressures skewing to the upside once more, which is clearly a factor. The move in Brent means it's close to closing the gap of the weekend of 24/25 July. What does Treasury do next? Only the Fed can really get a grip on this."

On home shores, the latest Consumer Sentiment Monitor from the British Retail Consortium showed that consumer confidence improved in August, with expectations for the economy, personal finances and retail spending all strengthening over the month.

The BRC-Opinium survey showed expectations for the state of the economy over the next three months rising to a net balance of -28 from -36 in July, while expectations for personal finances improved to -9 from -12.

Retail spending expectations climbed more sharply, with the net balance rising to +8 from +1, while overall spending expectations edged up to +15 from +13. Expectations for saving slipped to -5 from -4.

"Consumer sentiment continued to rise with confidence in the economy hitting its highest level since the historical lows reached at the start of the Iran conflict. Expectations for personal finances saw a small improvement, driven by an optimistic Gen Z," said Helen Dickinson, the BRC's chief executive.

"The Burnham administration is enjoying a honeymoon boost driven by less pessimism about the outlook, but maintaining that momentum will depend on whether the Government can ease the pressure on household budgets."

Dickinson said that the upcoming Autumn Budget in late-October will be the "acid test of this government's real commitment to growth", calling on the government to reduce retail business costs, from energy bills to business rates.

"A Budget that backs retail and reduces costs is a pro-consumer Budget," she said.

In equity markets, JD Sports Fashion tumbled as it cut its FY27 profit guidance following weaker trading in the second quarter. It now expects profit before tax and adjusting items of £700m to £800m, down from previous guidance of £750m to £850m.

Dan Coatsworth, head of markets at AJ Bell, said: "The trading update amounts to yet another setback for JD. There is only so long that shareholders will stay patient, and time is running out for chief executive Regis Schultz to whip the company back into shape. JD's share price has fallen by 27% since he began as CEO in September 2022 versus a 50% rise in the UK's FTSE 100 index. That's a significant level of underperformance.

"The Rubin family-owned Pentland Group is the majority shareholder in JD, and one can imagine it is frustrated at the retailer's progress. However, a lot of the problems facing JD are not of its own making, so Pentland might want to choose constructive discussions on strategy rather than simply calling for leadership change."

Hays slid after the recruiter said it swung to a full-year pre-tax loss due to restructuring charges, although there was an improvement in underlying profit.

Legal & General also fell, as it traded without entitlement to the dividend.

Market Movers

FTSE 100 (UKX) 10,748.16 0.04%

FTSE 250 (MCX) 24,508.66 -0.55%

techMARK (TASX) 6,139.18 -0.31%

FTSE 100 - Risers

Weir (WEIR) 2,750.00p 4.09%

Fresnillo (FRES) 3,168.00p 2.69%

BP (BP.) 552.20p 2.39%

Diageo (DGE) 1,723.50p 2.01%

Croda International (CRDA) 3,335.00p 1.99%

British American Tobacco (BATS) 4,161.00p 1.59%

Rio Tinto (RIO) 7,504.00p 1.57%

Experian (EXPN) 2,966.00p 1.44%

The Sage Group (SGE) 1,086.00p 1.21%

Relx plc (REL) 2,587.00p 1.05%

FTSE 100 - Fallers

JD Sports Fashion (JD.) 80.08p -14.32%

Investec (INVP) 634.00p -4.59%

Legal & General Group (LGEN) 286.30p -3.93%

Convatec Group (CTEC) 225.60p -2.76%

Burberry Group (BRBY) 1,056.50p -2.45%

Marks & Spencer Group (MKS) 376.40p -2.11%

Barratt Redrow (BTRW) 309.10p -2.09%

International Consolidated Airlines Group SA (CDI) (IAG) 418.70p -2.08%

Compass Group 11 (CPG) 30.80p -2.07%

Sainsbury (J) (SBRY) 328.70p -2.06%

FTSE 250 - Risers

Oxford Nanopore Technologies (ONT) 164.50p 17.75%

Pan African Resources (PAF) 128.90p 8.87%

Hochschild Mining (HOC) 598.00p 7.94%

Kainos Group (KNOS) 1,266.00p 4.37%

Michael Page (PAGE) 220.60p 4.15%

Ithaca Energy (ITH) 268.20p 4.11%

Energean (ENOG) 780.50p 3.51%

Harbour Energy (HBR) 265.00p 2.87%

Playtech (PTEC) 391.60p 2.73%

Syncona Limited NPV (SYNC) 108.40p 2.26%

FTSE 250 - Fallers

Trainline (TRN) 190.00p -9.00%

Dr. Martens (DOCS) 78.90p -7.83%

Currys (CURY) 148.60p -4.87%

Hays (HAS) 68.00p -4.83%

Ceres Power Holdings (CWR) 400.80p -4.57%

Plus500 Ltd (DI) (PLUS) 3,614.00p -4.14%

Aston Martin Lagonda Global Holdings (AML) 34.58p -4.10%

HGCapital Trust (HGT) 417.50p -4.02%

XPS Pensions Group (XPS) 318.50p -3.63%

4Imprint Group (FOUR) 4,506.00p -3.59%