London midday: Stocks tick higher as investors eye ECB
By Michele Maatouk
Date: Thursday 05 Jun 2025
(Sharecast News) - London stocks had edged higher by midday on Thursday as investors eyed an expected rate cut by the European Central Bank.
The FTSE 100 was up 0.3% at 8,827.28.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: "UK markets are in a holding pattern, with the FTSE 100 patiently waiting for a fresh catalyst to deliver the final push toward new all-time highs. The UK-US trade deal appears to be doing enough to insulate UK markets from excessive Trump-related volatility, though it remains to be seen how long this relative calm will last.
"It was also an uneventful opening bell for broader European markets this morning, as investors are all but certain the European Central Bank will cut rates later today down to 2%. Hopes for easing grew after Eurozone inflation dipped to 1.9% in May, just below the ECB's target. More cuts are on the cards too, with interest rates expected to fall to 1.5% by the end of the year - low enough to start actively supporting the economy."
On home shores, a survey revealed that the construction sector showed signs of easing in May.
The latest S&P Global UK construction purchasing managers' index was 47.9 in May, still in negative territory but up from April's 46.6 and the slowest pace of contraction since January. It was also ahead of consensus expectations for a reading of 47.2.
A reading below the neutral 50.0 benchmark indicates contraction, while one above it suggests growth.
The British construction sector has been hit by weakening demand amid uncertain economic conditions as well as higher costs.
Jobs were shed across the sector at the sharpest rate since August in May.
House building remained the weakest sector in May, at 45.1, while civil engineering came in at 45.9. Commercial work fell only marginally, however, to 49.5. However, business activity expectations edged, on hopes that interest rates will continue to come down.
Tim Moore, economics director at S&P Global Market Intelligence, said: "The construction sector continued to adjust to weaker order books in May, which led to sustained reductions in output, staff hiring and purchasing.
"However, the worst phase of spending cutbacks may have passed as total new work fell at a much slower pace than the near five-year record in February.
"Output growth expectations recovered to the highest so far in 2025. Respondents most cited a general improvement in sales projections as well as a potential tailed from failing interest rates."
In equity markets, bootmaker Dr Martens surged after saying it expects 2026 to be in line with guidance and that it would cut discounts in the Americas and EMEA regions under a turnaround plan led by new boss Ije Nwokorie.
It added that prices would remain unchanged despite the impact of US tariffs as all of its spring/summer stock was in the market, and by the start of July most autumn/winter ranges would have arrived or be in transit.
Russ Mould, investment director at AJ Bell, said: "Dr Martens is on the front foot with a strategy that seeks to kick out the troubles of old and return the business to profitable growth. This should shift the market's focus from earlier problems in the US and a sharp drop in earnings to a business intent on regaining its power.
"Having a plan is a good start, but the proof will be in the execution. It has laid out ambitions to get back on top. Turning those dreams into reality might not be easy.
"Fundamentally, it's all down to marketing and product innovation. Dr Martens needs to convince the consumer they need its products - get that right, and it could reclaim its crown in the footwear market. The brand still has considerable strength, the business just needs to be more creative at the front end and agile at the back end."
Empiric Student Property shot higher as it confirmed it has received a takeover proposal from Unite which values each of its shares at 107p and that it has agreed to enter an initial period of due diligence.
Fintech giant Wise rallied as it announced its intention to shift its primary listing from the UK to the US, saying the move would help accelerate growth and bring "substantial" strategic benefits to the business and its shareholders.
The news came as the cross-border payments firm delivered a 17% increase in underlying pre-tax profits to £282m, with revenues rising 15% to £1.21bn.
On the downside, WPP, Sainsbury's and Vodafone were all weaker as they traded without entitlement to the dividend.
Shares in Wizz Air nosedived as operating profits came in lower than expected, with the budget carrier blaming plane groundings due to a long-running engine issue which hit capacity along with higher costs. Operating profit slumped 61% to €167.5m for the year to March, well below the €246m expected by analysts.
Outsourcer Mitie was sharply lower after agreeing to buy AIM-listed Marlowe in a £366m deal.
CMC Markets was also down after annual earnings at the online trading platform missed expectations.
Market Movers
FTSE 100 (UKX) 8,827.28 0.30%
FTSE 250 (MCX) 21,086.52 -0.15%
techMARK (TASX) 4,918.24 0.31%
FTSE 100 - Risers
Fresnillo (FRES) 1,309.00p 3.72%
Smith & Nephew (SN.) 1,113.50p 2.86%
Antofagasta (ANTO) 1,900.50p 2.73%
Convatec Group (CTEC) 298.80p 2.12%
Anglo American (AAL) 2,276.50p 1.93%
Ashtead Group (AHT) 4,342.00p 1.40%
Reckitt Benckiser Group (RKT) 5,104.00p 1.39%
Experian (EXPN) 3,773.00p 1.37%
Mondi (MNDI) 1,212.50p 1.25%
Hiscox Limited (DI) (HSX) 1,325.00p 1.15%
FTSE 100 - Fallers
Sainsbury (J) (SBRY) 274.80p -3.31%
WPP (WPP) 563.60p -3.06%
Vodafone Group (VOD) 73.56p -3.06%
easyJet (EZJ) 574.40p -1.85%
Whitbread (WTB) 2,839.00p -1.73%
Marks & Spencer Group (MKS) 360.40p -1.72%
Pershing Square Holdings Ltd NPV (PSH) 3,876.00p -1.62%
Rolls-Royce Holdings (RR.) 879.20p -1.35%
NATWEST GROUP (NWG) 523.80p -1.13%
International Consolidated Airlines Group SA (CDI) (IAG) 331.60p -1.10%
FTSE 250 - Risers
Dr. Martens (DOCS) 71.20p 18.77%
Empiric Student Property (ESP) 102.40p 5.24%
Hochschild Mining (HOC) 298.60p 4.48%
Kainos Group (KNOS) 760.50p 4.04%
Playtech (PTEC) 318.50p 3.58%
Hammerson (HMSO) 286.80p 3.39%
W.A.G Payment Solutions (WPS) 75.00p 3.02%
Coats Group (COA) 78.30p 2.22%
Burberry Group (BRBY) 1,116.50p 2.20%
Abrdn (ABDN) 178.50p 2.18%
FTSE 250 - Fallers
Wizz Air Holdings (WIZZ) 1,208.00p -27.84%
Mitie Group (MTO) 140.20p -12.16%
CMC Markets (CMCX) 250.50p -11.95%
Discoverie Group (DSCV) 667.00p -8.88%
THG (THG) 23.92p -5.53%
Pets at Home Group (PETS) 262.00p -4.10%
TBC Bank Group (TBCG) 4,375.00p -3.42%
Paragon Banking Group (PAG) 880.00p -3.19%
Energean (ENOG) 879.50p -2.66%
Greggs (GRG) 2,004.00p -2.62%
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