London close: Stocks mixed ahead of crucial jobs data
By Josh White
Date: Monday 11 Aug 2025
(Sharecast News) - London stocks ended Monday mixed as optimism over a potential resolution to the Ukraine conflict was tempered by caution ahead of key economic data later this week.
The FTSE 100 index rose 0.37% to close at 9,129.71 points, while the FTSE 250 slipped 0.31% to 21,889.49 points.
"The FTSE 100 made a decent start to the trading week as some recent laggards attracted attention from bargain hunters," said AJ Bell investment director Russ Mould, adding that "the market seems very relaxed ahead of tomorrow's deadline on US-China trade talks, reflecting the assumption an extension is in the offing and a deal will eventually be reached."
In currency markets, sterling weakened 0.28% on the dollar to $1.3415, but edged up 0.05% against the euro to last change hands at €1.1558.
"Britain's leading stock index rose on Monday, driven by gains in healthcare and consumer shares; however, declines in defence stocks due to upcoming Russia-Ukraine peace talks limited the overall increase," said Patrick Munnelly, market strategy partner at TickMill Group.
He added that "the healthcare sector increased by 1.1% on Monday," with GSK gaining after the US Food and Drug Administration prioritised a review of its gonorrhoea treatment, while AstraZeneca, British American Tobacco and Diageo also made gains.
China reports stagnant consumer inflation
Global economic attention turned to Asia on Monday after China reported stagnant consumer inflation and another month of falling factory-gate prices, underscoring persistent weakness in domestic demand despite official efforts to stabilise the economy.
Data from the National Bureau of Statistics showed the consumer price index was unchanged year-on-year in July, following a 0.1% rise in June and against expectations for a modest decline.
On a monthly basis, prices rose 0.4%, reversing the previous month's drop.
Core inflation, excluding food and energy, increased 0.8%, the fastest annual pace in 17 months, helped by smaller price declines in cars and mobile phones.
Food prices fell 1.6% over the year, while lower tobacco, liquor, transportation and communication costs also weighed on the headline figure.
Producer prices dropped 3.6% from a year earlier, matching June's fall and marking the 34th consecutive month of decline, driven by overcapacity, intense competition and subdued demand.
Authorities had pledged to curb "disorderly competition" in key sectors, but analysts warned such measures would have limited impact without stronger demand-side stimulus.
Persistent headwinds include a prolonged property downturn, high youth unemployment and fragile consumer sentiment.
Exports provided some support, with July shipments up 7.2% year-on-year.
However, manufacturing surveys showed renewed weakness, with both official and private-sector PMIs in contraction and new export orders falling for a fourth consecutive month.#
Looking ahead, Munnelly said "US inflation figures are expected on Tuesday, which will play a crucial role in the Federal Reserve's interest rate decision next week."
In the week ahead, investors were awaiting UK labour market data on Tuesday and US consumer price inflation figures for July, which could influence expectations for interest rate policy.
Mould noted that "employment data will be closely monitored on Tuesday after last week's Bank of England meeting where the decision to cut rates was unexpectedly on a knife edge and policymakers adopted a hawkish tone."
M&S shares spark on restoration of click-and-collect
On London's equity markets, Marks & Spencer shares rose 2.95% after the retailer confirmed over the weekend that its click-and-collect service had been restored following a recent cyber attack.
Munnelly noted the reinstatement came "after a nearly four-month break due to a cyber hack and data breach," boosting its shares.
Diversified Energy climbed 5.75% after reporting solid second-quarter results, while precious metals miner Fresnillo gained 2.47% despite weaker gold prices.
"Gold prices lost some of their lustre on suggestions the Trump administration might not put tariffs on gold bars after all," Mould said.
On the downside, Plus500 fell 5.72% even as it posted higher first-half profit and revenue and reported more than a doubling of customer deposits.
Munnelly said the stock "has dropped 5.5% to 3,236p, making it the leading loser on the FTSE midcap," noting that Peel Hunt downgraded it from "buy" to "hold" despite a strong second quarter performance.
Marshalls slipped 0.97% after a fall in first-half profit, a dividend cut, and a warning that market activity levels are unlikely to improve in 2025.
"Cracks continue to appear in paving slab specialist Marshalls," said Mould, adding that while it is positioning for infrastructure spending, "investors may not have that much patience given its recent struggles."
Oxford Nanopore lost 2.7% after announcing that chief executive Gordon Sanghera would step down after more than two decades at the helm.
Munnelly noted shares were "down 1.3% to 212.2 pence" but remain up about 64% year-to-date.
Outside the FTSE 350, S4 Capital jumped 3.77% after confirming it had received a preliminary proposal from MSQ, owned by One Equity Partners, over a potential merger, while stressing there is no certainty a deal will proceed.
"Martin Sorrell's digital advertising vehicle S4 Capital confirmed merger talks with private equity - potentially providing a full stop on a buy-and-build venture which has struggled to gain traction," Mould added.
Gemfields Group advanced 3.07% after agreeing to sell luxury brand Fabergé to SMG Capital for $50m.
Reporting by Josh White for Sharecast.com.
Market Movers
FTSE 100 (UKX) 9,129.71 0.37%
FTSE 250 (MCX) 21,889.49 -0.31%
techMARK (TASX) 5,208.27 -0.47%
FTSE 100 - Risers
Marks & Spencer Group (MKS) 341.80p 2.95%
Fresnillo (FRES) 1,743.00p 2.47%
Airtel Africa (AAF) 212.00p 2.42%
Hikma Pharmaceuticals (HIK) 1,782.00p 2.41%
Pershing Square Holdings Ltd NPV (PSH) 4,104.00p 2.29%
Coca-Cola HBC AG (CDI) (CCH) 3,872.00p 2.27%
British American Tobacco (BATS) 4,314.00p 2.03%
NATWEST GROUP (NWG) 533.00p 1.95%
Diageo (DGE) 2,059.00p 1.88%
Associated British Foods (ABF) 2,253.00p 1.85%
FTSE 100 - Fallers
Croda International (CRDA) 2,478.00p -3.54%
Mondi (MNDI) 1,052.00p -2.50%
InterContinental Hotels Group (IHG) 8,616.00p -2.36%
CRH (CDI) (CRH) 7,984.00p -2.28%
JD Sports Fashion (JD.) 85.82p -2.14%
Experian (EXPN) 3,731.00p -1.92%
SEGRO (SGRO) 632.40p -1.71%
Melrose Industries (MRO) 581.40p -1.62%
SSE (SSE) 1,776.50p -1.58%
Spirax Group (SPX) 6,060.00p -1.46%
FTSE 250 - Risers
Diversified Energy Company (DEC) 1,158.00p 5.75%
IP Group (IPO) 60.30p 3.97%
Baltic Classifieds Group (BCG) 355.50p 3.95%
Gamma Communications (GAMA) 1,104.00p 3.56%
Greencoat UK Wind (UKW) 118.00p 2.16%
International Public Partnerships Ltd. (INPP) 126.00p 2.11%
BH Macro Ltd. GBP Shares (BHMG) 395.00p 1.80%
Harbour Energy (HBR) 231.20p 1.76%
NextEnergy Solar Fund Limited Red (NESF) 77.00p 1.72%
Chrysalis Investments Limited NPV (CHRY) 121.80p 1.67%
FTSE 250 - Fallers
Plus500 Ltd (DI) (PLUS) 3,228.00p -5.72%
Ocado Group (OCDO) 376.30p -4.88%
Burberry Group (BRBY) 1,144.00p -4.03%
Wizz Air Holdings (WIZZ) 1,365.00p -3.74%
Spectris (SXS) 4,034.00p -3.17%
Hays (HAS) 62.55p -2.87%
Oxford Nanopore Technologies (ONT) 209.20p -2.70%
RS Group (RS1) 550.00p -2.65%
Hochschild Mining (HOC) 300.60p -2.59%
Big Yellow Group (BYG) 924.00p -2.43%
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