London close: Stocks fall ahead of Powell speech

London stocks ended a little weaker on Thursday as investors eyed a speech by Federal Reserve chair Jerome Powell and digested the latest US data releases.

The FTSE 100 ended down 0.4% at 7,124.98.

IG market analyst Joshua Mahony: "Markets throughout the US and Europe are on the back foot this afternoon, with stocks largely in a holding pattern as we await tomorrow Jackson Hole speech from Jerome Powell. An upward revision to the US Q2 GDP reading fell short of expectations, with the annualised growth figure of 6.6% marginally below estimates of 6.7%. Elsewhere, we have seen the first upward move for initial jobless claims in five-weeks, with continuing claims also struggling to maintain its downward trajectory.

"Evidently, we are seeing a trend of slowing growth and economic expansion, with rising costs one concern for both consumer and economic alike. However, it is worthwhile noting that while a rise in joblessness is typically a sign of deteriorating economic opportunities, the sharp rise in wages does highlight how businesses are also finding it difficult to fill roles with the right people. With jobless claims and GDP data disappointing, the Federal Reserve continues to straddle the threat of elevated inflation with signals of a slower-than-expected economic recovery."

In equity markets, Polymetal lost its shine even as the gold and silver miner raised capital expenditure forecasts to reflect global inflation and accelerating several projects to take advantage of high silver prices.

Ex-dividend stocks weighed, with Aviva, Mondi and St James’s Place among those in the frame.

On the upside, building materials supplier CRH gained after it lifted its dividend as interim core earnings rose by a quarter and the company said it expected second half profits to be ahead of a record prior year.

Hays rallied after the recruiter said it was resuming dividend payments as it hailed a "strong" recovery in fee and profit growth in its full-year results.

Private hospital group Mediclinic was boosted by an upgrade to ‘buy’ from ‘hold’ at HSBC.

Market Movers

FTSE 100 (UKX) 7,124.98 -0.35%
FTSE 250 (MCX) 23,952.39 -0.14%
techMARK (TASX) 4,832.15 -0.02%

FTSE 100 - Risers

CRH (CDI) (CRH) 3,921.00p 3.92%
ITV (ITV) 118.35p 1.63%
Ocado Group (OCDO) 2,067.00p 0.88%
Imperial Brands (IMB) 1,537.50p 0.82%
Royal Mail (RMG) 494.10p 0.80%
NATWEST GROUP PLC ORD 100P (NWG) 217.50p 0.79%
Hikma Pharmaceuticals (HIK) 2,525.00p 0.72%
Pershing Square Holdings Ltd NPV (PSH) 2,530.00p 0.60%
Tesco (TSCO) 253.00p 0.58%
Spirax-Sarco Engineering (SPX) 16,060.00p 0.56%

FTSE 100 - Fallers

Polymetal International (POLY) 1,468.50p -3.61%
Melrose Industries (MRO) 165.95p -3.32%
Antofagasta (ANTO) 1,430.50p -2.73%
Rio Tinto (RIO) 5,316.00p -1.96%
Aviva (AV.) 413.30p -1.81%
BHP Group (BHP) 2,232.00p -1.52%
St James's Place (STJ) 1,588.00p -1.52%
Mondi (MNDI) 2,009.00p -1.42%
Anglo American (AAL) 2,997.50p -1.35%
Whitbread (WTB) 3,163.00p -1.25%

FTSE 250 - Risers

Hays (HAS) 163.40p 4.08%
Clarkson (CKN) 3,760.00p 3.31%
Tyman (TYMN) 408.00p 2.77%
TP Icap Group (TCAP) 199.96p 2.54%
Network International Holdings (NETW) 379.20p 2.21%
Genuit Group (GEN) 796.00p 2.05%
Pantheon International (PIN) 2,850.00p 1.96%
Reach (RCH) 417.50p 1.94%
Marshalls (MSLH) 799.50p 1.91%
Mediclinic International (MDC) 303.80p 1.88%

FTSE 250 - Fallers

Syncona Limited NPV (SYNC) 203.50p -4.50%
Ferrexpo (FXPO) 373.80p -3.96%
Wizz Air Holdings (WIZZ) 4,980.00p -3.79%
Trainline (TRN) 348.40p -3.22%
Apax Global Alpha Limited (APAX) 210.00p -3.00%
Tullow Oil (TLW) 44.22p -2.92%
TUI AG Reg Shs (DI) (TUI) 320.10p -2.65%
Hill & Smith Holdings (HILS) 1,820.00p -2.56%
easyJet (EZJ) 812.60p -2.55%
CLS Holdings (CLI) 235.00p -2.49%