Late market roundup: Stocks mixed as WPP and easyJet lift FTSE 250

The FTSE 250 reached a record close on Thursday, although the FTSE 100 ended down despite well-received company results, as eyes turn to the upcoming US nonfarm payrolls data.

The FTSE 100 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.

The Cboe UK 100 was down 0.1% at 1,080.03, the Cboe UK 250 was 0.6% higher at 21,528.93, and the Cboe Small Companies ended slightly lower.

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 USD1.3454 on Thursday afternoon, down from USD1.3466 at the equities close on Wednesday. Against the euro, sterling rose to EUR1.1675 from EUR1.1663.

The euro stood lower at USD1.1524 against USD1.1545. Against the yen, the dollar was higher at JPY158.41, compared to JPY157.58.

Brent oil for October delivery traded higher at USD81.74 a barrel on Thursday afternoon, from USD79.47 late 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 EUR11.20 to EUR11.50 for 2026, up from a range of EUR10.70 to EUR11.10 given in February.

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 nonfarm 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," said Lewis.

Diageo is targeting USD1 billion of cost savings and said it is confident that the outlook for the spirits market, including ready-to-drink, is robust and offers long-term growth potential.

For financial 2027, Diageo expects broadly flat organic net sales growth, and low-to mid-single-digit organic operating profit growth.

As a result, Citigroup analyst Simon Hales expects small upgrades to financial 2027 and 2028 consensus EPS estimates.

Given investors were "braced" for around 5% to 10% cuts, "this is likely to be well-received," he added.

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, with price increases earning through and continued positive underlying trends in other personal lines.

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.

York, England-based Persimmon said underlying operating profit grew 10% to £189.1 million in the six months to June from £172.0 million, beating Visible Alpha-cited market consensus of £176.8 million.

Persimmon posted a 13% increase in new home completions to 5,189 from 4,605 a year before, compared to 4,865 VA consensus, and expects to deliver around 12,500 completions in all of 2026, at the upper end of previous guidance of 12,000 to 12,500 homes. This would be 5.0% higher than 2025's total of 11,905.

In the red, Relx fell 4.1%, Rolls Royce eased 2.4%, and AstraZeneca declined 1.6% as they traded ex-dividend.

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. WPP's market capitalisation is currently about £4.14 billion, having fallen from around £24 billion in 2017.

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 bid from the Delaware-based asset manager values each easyJet share at 715 pence, and has the support of the airline's founder Stelios Haji-Ioannou and his family, who speak for 15.3% of easyJet stock.

easyJet stock closed up 2.8%.

Gold was lower at USD4,250.01 an ounce on Thursday from USD4,255.64 on Wednesday.

The biggest risers on the FTSE 100 were Diageo, up 91.50p at 1,732.50p, Admiral Group, up 194.00p at 3,900.00p, Vodafone, up 4.90p at 119.30p, Metlen Energy & Metals, up 1.63p at 50.05p and Persimmon, up 32.50p at 1,155.50.

The biggest fallers on the FTSE 100 were Tritax Big Box REIT, down 7.20p at 164.50p, Relx, down 112.00p at 2,603.00p, IG Group, down 38.00p at 1,312.00p, Melrose Industries, down 13.70p at 477.20p, and Rolls Royce, down 37.00p at 1,533.40p.

Friday's economic calendar has the US jobs report for July, including nonfarm payrolls figures, unemployment data in Canada, industrial production numbers in Germany, and the Lloyds house price index in the UK.

Friday's UK corporate calendar has half year results from Renewables Infrastructure Group.

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