London close: Markets turn weaker in afternoon trading

London stocks ended lower on Wednesday, giving up earlier gains as investor sentiment turned cautious following fresh US jobs data and lingering uncertainty over international trade negotiations ahead of the 9 July deadline set by US president Donald Trump.

The FTSE 100 index slipped 0.12% to close at 8,774.69 points, retreating from session highs where gains in mining stocks had earlier provided support, while the FTSE 250 dropped 1.34% to finish at 21,452.49 points.

In currency markets, sterling was last down 0.94% on the dollar to trade at $1.3617, as it lost 0.79% against the euro, changing hands at €1.1552.

“The US Senate has passed Donald Trump’s tax-cut and spending bill which means the attention now shifts to the House of Representatives for approval,” said Dan Coatsworth, investment analyst at AJ Bell, earlier.

“At the same time, there were developments on trade talks between the US and India which gave investors some encouragement.

“Trump seems optimistic about striking a deal with India, yet there would still be a long list of other countries that need to do the same before 9 July if they want to avoid high tariffs.”

Coatsworth noted that SSP saw its shares jump on progress with demerging its Indian travel food arm with the implied valuation looking higher than expected, while mid-cap software group Bytes Technology crashed after flagging that customers were delaying purchase decisions.

“A mild profit warning from Greggs has taken a bite out of its share price - companies love to blame the weather for poor sales but it’s normally down to rain and low temperatures rather than sunshine and heat.

“Greggs says the hot weather has reduced footfall and that’s led to a cut in profit guidance.

“We’ve only had a few days of the temperature being uncomfortably high so one might suggest sausage roll king Greggs is telling porkies.”

US employment unexpectedly declines, BoE policymaker wants more rate cuts

In economic news, private sector employment in the United States unexpectedly declined in June, raising concerns over the strength of the labour market.

Figures from payroll processor ADP showed a loss of 33,000 jobs compared to May, against expectations for a 100,000 increase.

The prior month’s gain was also revised down to 29,000 from 37,000.

Small and medium-sized businesses were the weakest segments, shedding a combined 62,000 jobs, while large firms added 30,000.

The services sector was hit hardest with a loss of 66,000 jobs, while goods-producing industries added 32,000.

Pay growth for job-stayers was steady at 4.4% year-on-year, while job-changers saw a slight slowdown to 6.8% from 7% in May.

“Though layoffs continue to be rare, a hesitancy to hire and a reluctance to replace departing workers led to job losses last month,” said Nela Richardson, chief economist at ADP.

“Still, the slowdown in hiring has yet to disrupt pay growth.”

In the American housing market, US mortgage applications rose 2.7% in the week ended 27 June, following a 1.1% gain the previous week, according to the Mortgage Bankers Association.

The increase came as the average 30-year fixed mortgage rate fell nine basis points to 6.79%, its lowest level in nearly three months.

While applications for home purchases were flat, refinancing activity jumped by 7%, reflecting greater sensitivity to falling rates.

On home shores, Bank of England policymaker Alan Taylor warned that Britain’s soft landing was now at risk and called for three further interest rate cuts this year.

Speaking at the European Central Bank’s forum in Portugal, Taylor argued that the UK economy was deteriorating faster than expected, requiring a sharper reduction in borrowing costs.

The BoE had already lowered rates twice this year to 4.25%, but paused in June following a surprise uptick in inflation.

Taylor said the balance between supply and demand was shifting rapidly, with rising slack in the economy and ongoing trade disruptions threatening growth into 2026.

Miners in the green, housebuilders fall again

On London’s equity markets, miners led the risers as commodity prices strengthened.

Glencore jumped 5.23%, Antofagasta rose 4.59%, Anglo American climbed 4.99%, and Rio Tinto added 1.4%.

SSP Group rallied 6.44% after announcing plans to take majority control of its Indian joint venture, Travel Food Services, ahead of a planned stock market listing in Mumbai valued at up to £1.23bn.

The hospitality group, which operates food outlets in travel hubs worldwide, said it was expecting the listing to complete on 14 July.

Spectris surged 4.52% after private equity giant KKR agreed a £4.7bn takeover, outbidding rival Advent.

On the downside, Bytes Technology Group plunged 32.82% after warning that first-half operating profit would be slightly lower year-on-year due to a “challenging” macroeconomic environment that has delayed customer spending.

Greggs slumped 15.19% after the bakery chain warned full-year 2025 profits may come in “modestly below” 2024 levels, with strong May sales offset by slower growth in June as hot weather dampened footfall.

Housebuilders extended losses following weaker-than-expected housing data from Nationwide on Tuesday.

Persimmon fell 6.78%, Berkeley Group dropped 5.52%, Barratt Redrow slid 4.78%, and Taylor Wimpey lost 4.35% after data showed UK house prices fell 0.8% in June, reversing gains from May and undershooting forecasts.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,774.69 -0.12%
FTSE 250 (MCX) 21,452.49 -1.34%
techMARK (TASX) 5,061.42 -0.65%

FTSE 100 - Risers

Glencore (GLEN) 306.00p 5.06%
Antofagasta (ANTO) 1,916.00p 4.59%
Spirax Group (SPX) 6,175.00p 4.40%
Anglo American (AAL) 2,263.50p 4.16%
Ashtead Group (AHT) 4,788.00p 3.03%
BP (BP.) 379.40p 3.03%
Smurfit Westrock (DI) (SWR) 3,425.00p 3.01%
Rio Tinto (RIO) 4,381.00p 2.74%
Melrose Industries (MRO) 531.00p 2.12%
Mondi (MNDI) 1,233.00p 1.86%

FTSE 100 - Fallers

Berkeley Group Holdings (The) (BKG) 3,600.00p -7.88%
Persimmon (PSN) 1,210.50p -6.78%
NATWEST GROUP (NWG) 473.80p -5.50%
Convatec Group (CTEC) 257.40p -5.37%
Land Securities Group (LAND) 600.00p -5.29%
Marks & Spencer Group (MKS) 338.30p -5.05%
Barratt Redrow (BTRW) 431.70p -4.78%
Unite Group (UTG) 815.50p -4.46%
Next (NXT) 11,990.00p -4.39%
Babcock International Group (BAB) 1,070.00p -4.38%

FTSE 250 - Risers

SSP Group (SSPG) 186.00p 7.02%
Indivior (INDV) 1,113.00p 4.77%
Oxford Instruments (OXIG) 1,968.00p 4.13%
Tate & Lyle (TATE) 542.00p 4.03%
Burberry Group (BRBY) 1,258.00p 3.97%
Carnival (CCL) 1,956.50p 3.85%
Spectris (SXS) 3,972.00p 3.71%
Moonpig Group (MOON) 234.00p 2.86%
Auction Technology Group (ATG) 472.00p 2.61%
Petershill Partners (PHLL) 226.50p 2.49%

FTSE 250 - Fallers

Bytes Technology Group (BYIT) 341.60p -32.82%
Greggs (GRG) 1,675.00p -15.19%
Bellway (BWY) 2,612.00p -7.96%
Computacenter (CCC) 2,270.00p -7.50%
Big Yellow Group (BYG) 965.00p -6.31%
Softcat (SCT) 1,623.00p -6.02%
PayPoint (PAY) 811.00p -5.51%
Great Portland Estates (GPE) 340.50p -5.42%
Grainger (GRI) 211.00p -5.17%
Derwent London (DLN) 1,991.00p -5.01%