The FTSE 100 fell on Thursday despite well-received figures from WPP and Diageo.
The index closed down 20.41 points, 0.2%, at 10,867.89. The FTSE 250 ended up 62.79 points, 0.3%, at 24,695.42, a record close, while the AIM All-Share closed up 5.35 points, 0.7%, at 787.13.
In London, fresh survey data showed the UK’s construction sector remained under pressure in July, although the pace of contraction eased markedly.
The S&P Global UK construction purchasing managers’ index rose to 44.7 in July from 38.4 in June, its highest level in four months and comfortably above the FXStreet-cited consensus of 41.5.
However, it remained below the 50-point threshold that separates growth from contraction, extending the sector’s downturn to a seventh consecutive month.
All three major construction sectors recorded slower declines. Commercial activity proved the most resilient with a reading of 46.8, while housebuilding contracted at its slowest pace since October 2025 at 41.8. Civil engineering remained the weakest area at 38.3.
New orders also declined for a seventh consecutive month, though at the slowest pace since September 2025.
The pound traded at 1.3454 dollars on Thursday afternoon, down from 1.3466 at the equities close on Wednesday. Against the euro, sterling rose to 1.1675 euro from 1.1663.
Brent oil for October delivery traded higher at 81.74 dollars a barrel on Thursday afternoon, from 79.47 late on Wednesday.
In European equities on Thursday, the CAC 40 in Paris closed up 0.4%, while the DAX 40 in Frankfurt ended 0.1% higher.
Figures in Europe showed retail sales were weaker than expected in June. According to Eurostat, retail sales volumes declined 0.3% in June from May. They had risen 0.4% in May from April, and a 0.1% rise for June had been expected, according to consensus cited by FXStreet.
Meanwhile, Siemens fell 4.5% after the industrial firm’s increased guidance fell short of investors’ hopes.
The provider of electrical equipment now expects earnings per share of 11.20 euro to 11.50 euro for 2026
But analysts at RBC Capital Markets said the earnings “uplift appears less pronounced than peers”.
Stocks in New York were mostly mixed. The Dow Jones Industrial Average was down 0.6%, the S&P 500 index was 0.1% lower, but the Nasdaq Composite was up 0.2%.
The yield on the US 10-year Treasury stretched to 4.66% on Thursday from 4.63% on Wednesday. The yield on the US 30-year Treasury rose to 5.20% from 5.17%.
Friday sees the July US jobs report, including a non-farm payrolls print.
Kathleen Brooks, research director at XTB, noted the market is expecting a reading of 80,000 for payrolls and for the unemployment rate to remain steady at 4.2%.
“Payrolls are always important, but they are taking on extra significance since the Fed has dropped forward guidance,” she explained.
“If every meeting is a ‘live’ meeting, then a stronger ready could boost the chance of a rate hike, push up Treasury yields, increase demand for the dollar and potentially weigh on equities and risk sentiment. However, the reverse is also true. A weak reading for July payrolls may suggest that rates are on hold for the long term, and we could see a sharp reduction in September rate hike expectations, which currently stand at 54%,” she added.
Back in London, another batch of earnings provided direction with Diageo, Admiral and Persimmon among the blue-chip winners.
Diageo rose 5.6% after chief executive Dave Lewis announced financial 2026 results and a keenly awaited strategic plan.
“This new strategy, executing with a new, more agile, competitive and cost-effective operating model, gives us confidence that we can return Diageo to a business consistently creating value for shareholders,” Mr Lewis said.
Admiral rose 5.2% as it said early pricing changes in its motor division leave it “well positioned” for an upturn in the market.
The Cardiff-based home and motor insurer said it expects stronger second-half group profits versus the first six months of 2026.
Persimmon rose 2.9% after better-than-forecast interim results, although it stressed that market conditions remain challenging for housebuilders in the UK, with affordability constraints and build-cost pressures.
On the FTSE 250, WPP shot up 29% as it backed annual guidance after seeing a “sequential improvement” in its second quarter.
WPP was relegated from the FTSE 100 for the first time after nearly 30 years in December 2025.
Elsewhere, the bidding battle for easyJet moved a step closer to ending as the budget airline accepted an offer from Apollo after rival suitor Castlelake withdrew from the race.
The biggest risers on the FTSE 100 were Diageo, up 91.5p at 1,732.5p, Admiral Group, up 194.0p at 3,900.0p, Vodafone, up 4.9p at 119.3p, Metlen Energy & Metals, up 1.6p at 50.0p and Persimmon, up 32.5p at 1,155.5.
The biggest fallers on the FTSE 100 were Tritax Big Box REIT, down 7.2p at 164.5p, Relx, down 112.0p at 2,603.0p, IG Group, down 38.0p at 1,312.0p, Melrose Industries, down 13.7p at 477.2p, and Rolls Royce, down 37.0p at 1,533.4p.
Friday’s UK corporate calendar has half year results from Renewables Infrastructure Group.
