London close: Stocks flat as gold rally boosts miners

London stocks closed little changed on Friday after a week marked by central bank policy moves, shifting economic signals and volatile commodity markets.

The FTSE 100 index edged down 0.06% to 9,095.73 points, while the FTSE 250 added 0.09% to end the session at 21,958.55 points.

Currency markets were also quiet, with sterling marginally firmer against both the dollar and euro, trading at $1.3445 and €1.1529, respectively.

"The FTSE 100 was just about keeping its head above water to stay above the 9,100 mark on Friday morning," said AJ Bell’s Danni Hewson.

However, the index came under pressure as sterling strengthened following a hawkish tilt from the Bank of England on Thursday.

The central bank cut rates by 25 basis points but flagged lingering inflation risks and a narrower vote split than expected, dampening expectations of further imminent easing.

Retail footfall data shows signs of stabilising in sector

Economic sentiment remained cautious despite signs of stabilisation in retail activity.

UK retail footfall fell 0.4% in July compared to a year earlier, improving on June’s 1.8% drop, according to the British Retail Consortium and Sensormatic.

High streets saw a 1.7% decline in footfall, while visits to retail parks rose 1.7%.

Shopping centre footfall dipped just 0.3%.

“July failed to bring about the summer boost in shoppers many retailers had hoped for,” said BRC CEO Helen Dickinson.

“There were bright spots, with Manchester, Birmingham, and Leeds showing an improvement in store visits, and retail parks continued to outperform.”

Sensormatic’s Andy Sumpter pointed to a cautious consumer backdrop despite an improving trend.

“The underlying footfall trend may be improving, but this is still negative growth on negative 2024 figures,” he noted.

“Retailers who can offer value, experience, and convenience may be best placed to convert tentative footfall into lasting growth.”

Gold futures lift miners, Flutter slides despite raising profit guidance

Commodity markets were a bright spot, as US gold futures surged to record highs amid reports that the Trump administration had imposed tariffs on imports of one-kilo bullion bars.

The move lifted precious metals miners in London, with Fresnillo up 1.67% and Hochschild Mining gaining 0.98%.

“The move higher in gold helped to lift shares in gold and silver miner Fresnillo, extending its advance year-to-date to more than 160%,” said Hewson.

The news came as part of a broader flare-up in US trade policy, including a 39% tariff on Swiss gold exports and hints of further escalation with India, even as progress was reported on Japan tariffs.

GSK rose 0.9% after announcing it would receive a $370m upfront payment in a settlement related to mRNA patents with CureVac and BioNTech.

The agreement could also generate ongoing royalty revenue.

“Pharmaceutical giant GSK was among the gainers ... a modest, though still welcome, cash injection,” added Hewson.

Elsewhere, Capita climbed 2.43% after extending its contact centre deal with ScottishPower for another three years.

Senior jumped 4.82% after Berenberg initiated coverage with a ‘buy’ rating, highlighting the firm’s recent strategic shift following the sale of its aerostructures division as a “pivotal moment”.

On the downside, Flutter Entertainment dropped 8.08%, despite raising its full-year revenue and profit guidance.

Investors appeared unimpressed by what AJ Bell described as “underwhelming growth across most regions,” suggesting potential market share losses.

Fellow gambling group Entain slid 5.82%, while TBC Bank fell 5.13% despite a 23% increase in second quarter operating income.

Looking ahead, investors were watching next week’s UK labour market and GDP data for clues on the Bank of England’s next move.

TickMill’s Patrick Munnelly noted that “a potential sixth consecutive drop in payroll employment for July could strengthen the case for another rate cut,” though the MPC remained cautious amid lingering inflation concerns.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 9,095.73 -0.06%
FTSE 250 (MCX) 21,958.55 0.09%
techMARK (TASX) 5,232.61 -0.36%

FTSE 100 - Risers

CRH (CDI) (CRH) 8,170.00p 3.03%
Glencore (GLEN) 288.25p 2.78%
Antofagasta (ANTO) 2,024.00p 2.53%
Coca-Cola Europacific Partners (DI) (CCEP) 7,030.00p 2.33%
Mondi (MNDI) 1,079.00p 2.03%
JD Sports Fashion (JD.) 87.70p 1.79%
ICG (ICG) 2,190.00p 1.77%
Melrose Industries (MRO) 591.00p 1.72%
Rentokil Initial (RTO) 378.50p 1.72%
Rio Tinto (RIO) 4,573.00p 1.64%

FTSE 100 - Fallers

Flutter Entertainment (DI) (FLTR) 21,060.00p -8.08%
WPP (WPP) 367.50p -6.20%
Entain (ENT) 938.00p -5.82%
InterContinental Hotels Group (IHG) 8,824.00p -3.90%
Rightmove (RMV) 788.00p -3.71%
The Sage Group (SGE) 1,161.50p -3.09%
Compass Group (CPG) 2,578.00p -2.46%
Relx plc (REL) 3,577.00p -2.43%
Auto Trader Group (AUTO) 819.00p -2.13%
Beazley (BEZ) 906.00p -1.84%

FTSE 250 - Risers

Senior (SNR) 195.60p 4.82%
Ocado Group (OCDO) 395.60p 4.11%
Computacenter (CCC) 2,326.00p 3.47%
Aston Martin Lagonda Global Holdings (AML) 74.90p 3.17%
Great Portland Estates (GPE) 343.00p 2.69%
Pantheon Infrastructure (PINT) 109.00p 2.35%
Wizz Air Holdings (WIZZ) 1,418.00p 2.31%
WH Smith (SMWH) 1,076.00p 2.28%
Harbour Energy (HBR) 227.20p 2.16%
Workspace Group (WKP) 426.00p 2.16%

FTSE 250 - Fallers

Trustpilot Group (TRST) 228.80p -6.08%
TBC Bank Group (TBCG) 4,810.00p -5.13%
Rank Group (RNK) 147.60p -4.77%
Baltic Classifieds Group (BCG) 342.00p -4.07%
Harworth Group (HWG) 182.00p -3.96%
Burberry Group (BRBY) 1,192.00p -3.09%
Auction Technology Group (ATG) 340.00p -2.86%
Lancashire Holdings Limited (LRE) 615.00p -2.84%
PPHE Hotel Group Ltd (PPH) 1,728.00p -2.37%
Trainline (TRN) 265.20p -2.36%