The FTSE 100 remained fairly steady on Thursday, as mixed earnings updates led to a directionless performance by the index.
That said, London’s leading index had just crept above 8,500, turning positive at the time of writing, and was on course to build on the recovery rally following Trump’s tariffs.
“There was plenty of corporate news for the markets to digest on Thursday morning – with the good, bad and ugly all represented,” said AJ Bell investment director Russ Mould.
“Banks, energy stocks and housebuilders were out of favour while miners and other stocks caught up in the tariff-related sell-off made progress. BP and Shell were a drag given their weighting in the index as US oil prices slipped below $60 per barrel. This reflected concerns about an economic slowdown in the wake of a global trade war and speculation producers’ cartel OPEC might lift production again in June.”
BP shares were down 2.4% and Shell lost 1.4% as the two oil majors offset gains elsewhere in the index.
Polar Capital Technology Trust was the FTSE 100’s top riser as the US tech-focused trust tracked a rally in the US overnight. Strong results from Meta will have also helped the trust’s cause – Meta makes up 7.6% of the trust’s holdings.
Persimmon shares were 1% higher after the housebuilder followed Taylor Wimpey’s update yesterday with a similarly upbeat trading statement.
“Persimmon’s building on its strong performance in 2024 and looks like one of the best-placed names to benefit from any potential uplift in the sector,” explained Aarin Chiekrie, equity analyst, Hargreaves Lansdown.
“Improving sales rates, higher average selling prices and a growing order book all paint a very encouraging picture of current and future trading.”
Lloyds was among the FTSE 100 fallers after the UK-focused bank revealed the impact of economic uncertainty on provisions for bad debts, which eroded profits.
There was probably an element of profit taking in Lloyds shares’ 2% drop on Thursday, given the back has rallied from around 60p to over 70p in less than a month.
“Unlike Barclays, which is a beneficiary of market volatility thanks to the trading part of its investment banking business, the current uncertainty is only bad news for Lloyds,” Russ Mould said.
“The company has increased the amount set aside for bad debts – not based on anything it is seeing yet but as a prudent move to anticipate any impact from the recent turmoil.
“While there is no change to the current annual guidance, the first quarter showing was slightly behind forecasts thanks to the tariff-related adjustments and as the company absorbed the impact of higher costs.”