London close: FTSE finishes week just shy of 9,000

18th Jul 2025 17:51

(Sharecast News) - London stocks ended higher on Friday, supported by a positive shift in investor sentiment following US consumer confidence data.

The FTSE 100 index edged up 0.22% to close at 8,992.12 points, while the FTSE 250 outperformed with a gain of 0.61%, ending the session at 21,898.26 points.

In currency markets, sterling was last up 0.08% on the dollar to trade at $1.3427, although it slipped 0.28% against the euro, changing hands at €1.1538.

"The FTSE 100 is the ultimate tease, once again flirting above the 9,000 level before taking a step back," quipped Dan Coatsworth, investment analyst at AJ Bell.

"What really matters is that the UK stock market is strutting its stuff and continuing to press ahead.

"It joined the rest of Europe by basking in the sun and trading higher than the previous day."

Coatsworth said the FTSE's overall gain was "all the more impressive" when it was considered that GSK was having "a disastrous day" and trying to be the mother of all anchors on the index.

"Shell and BP came to the rescue as they lifted the UK market up, with strong support from consumer giants Reckitt and Unilever.

"BP has struck a deal to sell its US onshore wind business to LS Power, marking its second asset disposal in as many weeks as the company tries to reshape for the future.

"Last week it bundled up various operations including 300 Dutch retail sites and 15 electric vehicle charging hubs in a sale to Catom."

Consumer sentiment rises slightly stateside

In economic news, consumer sentiment in the United States rose slightly in July, while inflation expectations dropped for a second consecutive month, according to preliminary data from the University of Michigan.

The headline sentiment index edged up to 61.8 from 60.7 in June, marking a five-month high but remaining 16% below levels seen at the end of 2024.

Survey director Joanne Hsu noted that perceptions of short-term business conditions improved by around 8%, although views on personal finances deteriorated by about 4%.

"Consumers are unlikely to regain their confidence in the economy unless they feel assured that inflation is unlikely to worsen, for example if trade policy stabilizes for the foreseeable future," she added.

"At this time, the interviews reveal little evidence that other policy developments, including the recent passage of the tax and spending bill, moved the needle much on consumer sentiment."

One-year inflation expectations declined from 5.0% to 4.4%, while the five-year outlook fell for a third straight month to 3.6% from 4.0%.

Closer to home, construction output across the eurozone declined by 1.7% in May, reversing a 4.3% surge in April that had marked the strongest monthly increase since March 2021.

Eurostat data showed that building construction fell 1.3%, civil engineering slipped 0.7%, and specialised construction activities dropped 1.7%.

The largest monthly declines were reported in Germany, Belgium, and the Netherlands, while Slovenia and Finland posted the strongest gains.

On an annual basis, output rose 2.9% in May, easing from a 4.7% year-on-year increase in April.

Germany, meanwhile, saw its sharpest drop in wholesale prices in nine months, as the producer price index fell 1.3% year-on-year in June, following a 1.2% decline in May.

The decrease was mainly driven by falling energy prices, with electricity down 8.8%, natural gas 6.9% lower, and mineral oil 7.7% cheaper.

Prices for capital goods and consumer goods continued to rise, but intermediate goods prices dipped 0.4%.

This marked the fourth consecutive month of annual deflation in producer prices.

Ocado surges, GSK in the red

On London's equity markets, Ocado Group surged 11.47% for a second straight session after reaffirming its full-year guidance and posting a first-half profit, driven by strong growth in both its technology and logistics businesses.

Burberry Group also gained, rising 5.57%, as the luxury retailer reported a smaller-than-expected 1% decline in comparable sales for the quarter to 28 June.

Senior climbed 4.26% after announcing the sale of its aerostructures unit to Sullivan Street Partners for up to £200m.

The company plans to use the proceeds to cut debt and launch a £40m share buyback.

BP rose 0.67% after agreeing to sell its US onshore wind business to LS Power.

Although financial terms were not disclosed, the deal will add to Clearlight Energy's portfolio, expanding its operating capacity to around 4.3 gigawatts.

Reckitt Benckiser edged up 0.6% as it unveiled plans to sell a controlling stake in its Essential Home division to Advent International in a deal valuing the business at $4.8bn.

The consumer goods giant said it would return $2.2bn to shareholders and retain a 30% interest.

On the downside, GSK dropped 4.6% after the US Food and Drug Administration advised against approving its blood cancer treatment Blenrep.

"A troubling £3.8bn has been wiped off the value of GSK after the US drug regulator cast doubt over its blood cancer drug, Blenrep, being approved for use," noted Dan Coatsworth.

"The FDA has voted against the proposed dosage from a benefit-risk perspective.

"It means the likelihood of Blenrep's approval next week is looking extremely slim."

Bridgepoint Group fell 3.89% despite reporting strong growth in assets under management, which rose to $86.6bn by mid-year.

Softcat lost 2.87% following a bearish note from JPMorgan, which added the stock to its 'negative catalyst watch'.

Barclays slipped 0.44% after being downgraded to 'neutral' by Citi.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,992.12 0.22%

FTSE 250 (MCX) 21,898.26 0.61%

techMARK (TASX) 5,190.44 0.14%

FTSE 100 - Risers

Rentokil Initial (RTO) 357.30p 2.97%

Antofagasta (ANTO) 1,868.50p 2.58%

Intermediate Capital Group (ICG) 2,156.00p 2.37%

3i Group (III) 4,340.00p 2.26%

BAE Systems (BA.) 1,940.00p 2.16%

Whitbread (WTB) 3,182.00p 1.95%

SEGRO (SGRO) 665.00p 1.87%

SSE (SSE) 1,883.50p 1.87%

Severn Trent (SVT) 2,688.00p 1.86%

United Utilities Group (UU.) 1,118.00p 1.78%

FTSE 100 - Fallers

GSK (GSK) 1,348.00p -4.60%

Mondi (MNDI) 1,134.50p -2.83%

Smurfit Westrock (DI) (SWR) 3,335.00p -2.26%

Informa (INF) 836.60p -1.09%

Croda International (CRDA) 2,846.00p -1.08%

Fresnillo (FRES) 1,445.00p -1.03%

International Consolidated Airlines Group SA (CDI) (IAG) 380.40p -0.94%

Entain (ENT) 947.20p -0.86%

Relx plc (REL) 3,956.00p -0.85%

Convatec Group (CTEC) 240.00p -0.66%

FTSE 250 - Risers

Ocado Group (OCDO) 311.00p 11.47%

Burberry Group (BRBY) 1,317.50p 5.57%

RHI Magnesita N.V. (DI) (RHIM) 3,020.00p 4.86%

Pennon Group (PNN) 516.00p 4.50%

Senior (SNR) 195.80p 4.26%

WH Smith (SMWH) 1,068.00p 4.09%

Hochschild Mining (HOC) 271.80p 2.88%

Bakkavor Group (BAKK) 222.50p 2.77%

Sirius Real Estate Ltd. (SRE) 95.95p 2.68%

Rank Group (RNK) 147.20p 2.65%

FTSE 250 - Fallers

Bridgepoint Group (Reg S) (BPT) 341.00p -3.89%

SDCL Efficiency Income Trust (SEIT) 55.50p -3.16%

Softcat (SCT) 1,626.00p -2.87%

Bloomsbury Publishing (BMY) 515.00p -2.46%

Oxford Nanopore Technologies (ONT) 146.60p -1.94%

TBC Bank Group (TBCG) 4,865.00p -1.62%

Vesuvius (VSVS) 382.00p -1.60%

Raspberry PI Holdings (RPI) 466.60p -1.35%

Playtech (PTEC) 385.00p -1.28%

Bytes Technology Group (BYIT) 335.80p -1.24%