LONDON (ShareCast) - (Sharecast News) - London stocks ended Thursday on a mixed note as investors weighed geopolitical developments and fresh economic data from the United States.
The FTSE 100 index slipped 0.11% to close at 8,716.45 points, while the FTSE 250 rose 0.25% to finish at 20,997.58 points.

In currency markets, sterling was last up 0.19% on the dollar to trade at $1.3494, while it weakened 0.5% against the euro, changing hands at €1.1869.

"For the FTSE 100 and other European markets, today has been a case of selling the news," said IG chief market analyst Chris Beauchamp.

"Indices on the continent have struggled to make headway today, but given the size of the rally in recent weeks and the looming month-end it is perhaps not surprising to see the move take a breather.

"The Trump administration is sure to appeal the decision, and will also look to employ other methods to impose tariffs, so the court decision is not a definitive resolution of the issue."

Beauchamp noted that US futures rallied overnight on the court news and Nvidia earnings, but had been similarly rangebound in Thursday trading.

"It feels like investors are awaiting Trump's next move, and until that arrives it might not be too wise to push this rally much further in the short term."

US economy contracts as court rules against Trump tariffs

At the top of the agenda was the news that a US federal court had blocked president Donald Trump's sweeping tariff policy, ruling that he exceeded his authority under existing trade laws.

The US Court of International Trade found that the International Emergency Economic Powers Act did not permit the president to impose broad, retaliatory tariffs without congressional approval.

It invalidated most of the tariffs introduced by Trump on 2 April, and gave the administration 10 days to dismantle the regime.

The White House vowed to appeal.

"While stock pickers are clearly cheered by this news, we see it unlikely it will do much to boost confidence on Main Street," said analysts at Rabobank.

"This is owing to the fact that it does nothing to dispel the elevated level of uncertainty, which is only likely to encourage corporates to sit on their hands when it comes to investment and hiring decisions."

The tariff ruling came as the US economy recorded its first contraction since 2022.

Revised data from the Bureau of Economic Analysis showed that GDP shrank by 0.2% in the first quarter of 2025, slightly less than the previously estimated 0.3% decline.

The downturn, following 2.4% growth in the prior quarter, was attributed to weaker consumer spending and a rise in imports ahead of anticipated tariffs.

Labour market data also pointed to mounting pressures stateside.

Initial jobless claims rose by 14,000 to 240,000 in the week ending May 10, the highest level in a month.

Continuing claims increased to 1.91 million, their highest since late 2021.

Despite the uptick, the four-week average held steady, suggesting some underlying stability.

However, new claims by federal government employees also ticked higher amid ongoing public sector cutbacks.

On home shores, UK vehicle manufacturing slumped to its lowest April level since 1952.

Output fell 15.8% year-on-year to 59,203 units, according to the Society of Motor Manufacturers and Traders.

The decline was attributed to seasonal effects, model changeovers, and weaker demand in major export markets such as the EU and the US, where shipments dropped 19.1% and 2.7% respectively.

By contrast, exports to China and Turkey rose sharply.

"With automotive manufacturing experiencing its toughest start to the year since 2009, urgent action is needed to boost domestic demand and our international competitiveness," said SMMT boss Mike Hawes.

"The government has recognised automotive manufacturing's critical role in driving the UK economy, having successfully negotiated improved trading conditions for the sector with the US, EU and India in the space of a month.

"To take advantage of these trading opportunities we must secure additional investment which will depend on the competitiveness and confidence that can be provided by a comprehensive and innovative long-term industrial strategy."

Auto Trader slides despite results, US-exposed plays in the green

On London's equity markets, Auto Trader Group plunged 11.27%, despite reporting a solid set of full-year results.

The company posted a 5% rise in group revenue to £601.1m for the year ended 31 March, supported by a 7% increase in its core platform revenue.

However, a 12% drop in sales at its van-leasing unit Autorama and cautious investor reaction to its outlook weighed on the share price.

Operating profit rose 8% to £376.8m.

"A strong recent run in the share price has led to some significant investor displeasure at the open, given that the results were no more than in line with estimates and with the outlook containing few positive surprises," said Richard Hunter, head of markets at Interactive Investor.

Elsewhere, Phoenix Group Holdings slipped 1.79% after Bank of America Merrill Lynch downgraded the insurer to 'neutral' from 'buy'.

The broker cited limited further upside following a 32% gain in the stock year-to-date, estimating only 13% potential total return going forward.

Utilities underperformed amid pressure on bond proxies, with National Grid falling 3.46% and Severn Trent losing 2.14%.

On the upside, shares in Dr Martens surged 5.1%, while Aston Martin Lagonda rose 1.97%, with both stocks benefiting from their significant exposure to the US market.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,716.45 -0.11%
FTSE 250 (MCX) 20,997.58 0.25%
techMARK (TASX) 4,825.57 0.12%

FTSE 100 - Risers

SEGRO (SGRO) 701.00p 4.13%
Fresnillo (FRES) 1,171.00p 3.26%
Convatec Group (CTEC) 290.60p 3.05%
Glencore (GLEN) 277.90p 2.15%
Legal & General Group (LGEN) 246.80p 1.73%
Standard Chartered (STAN) 1,159.50p 1.71%
easyJet (EZJ) 570.40p 1.60%
Persimmon (PSN) 1,336.00p 1.60%
Prudential (PRU) 846.00p 1.54%
Schroders (SDR) 350.20p 1.51%

FTSE 100 - Fallers

Auto Trader Group (AUTO) 798.60p -11.27%
National Grid (NG.) 1,031.00p -3.78%
Coca-Cola HBC AG (CDI) (CCH) 3,842.00p -2.39%
Severn Trent (SVT) 2,660.00p -2.28%
Kingfisher (KGF) 279.20p -2.14%
Rightmove (RMV) 746.60p -1.97%
Marks & Spencer Group (MKS) 373.60p -1.97%
Relx plc (REL) 3,990.00p -1.92%
BAE Systems (BA.) 1,882.50p -1.49%
Intermediate Capital Group (ICG) 2,020.00p -1.46%

FTSE 250 - Risers

Dr. Martens (DOCS) 57.70p 5.10%
Mobico Group (MCG) 29.08p 4.23%
Empiric Student Property (ESP) 96.70p 3.42%
Raspberry PI Holdings (RPI) 552.00p 3.18%
Target Healthcare Reit Ltd (THRL) 100.60p 3.07%
Jupiter Fund Management (JUP) 91.60p 3.04%
Ithaca Energy (ITH) 143.20p 2.87%
Energean (ENOG) 899.50p 2.57%
Grainger (GRI) 224.00p 2.52%
Vietnam Enterprise Investments (DI) (VEIL) 560.00p 2.38%

FTSE 250 - Fallers

Diversified Energy Company (DEC) 1,040.00p -3.97%
Chrysalis Investments Limited NPV (CHRY) 99.40p -3.31%
Hilton Food Group (HFG) 861.00p -3.15%
Rank Group (RNK) 123.20p -3.14%
Hill and Smith (HILS) 1,852.00p -2.22%
Moonpig Group (MOON) 247.50p -2.18%
Ferrexpo (FXPO) 55.60p -2.11%
Harbour Energy (HBR) 181.50p -1.94%
SSP Group (SSPG) 167.80p -1.94%
Keller Group (KLR) 1,548.00p -1.90%

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