London close: Stocks little changed on 4 July, central banks in focus
London stocks were little changed on Thursday with what traders were left in the market opting to sit on their hands on account of the 4 July holiday in the States and ahead of the monthly US jobs report due out the next day which might heavily influence near-term expectations for the Federal Reserve.
The FTSE 100 was drifting lower by 0.08% at 7,603.58, while the pound was 0.11% higher versus the US dollar to 1.25810 and by 0.03% against the euro to 1.1151.
Across the Pond, the New York Stock Exchange and US markets more generally remained closed on Thursday in observance of the 4 July.
"This afternoon was always likely to be a relatively muted one, with US Independence Day festivities ensuring volumes and volatility are kept to a minimum," said IG's Josh Mahony.
"European markets have failed to really gain any traction in either direction, with the gains of recent days pausing without any new shift in sentiment. In a week that has largely been dominated by disappointing economic data, the theme of more dovish monetary policy has been increasingly prevalent."
On that note, European Central Bank governing council member, Olli Rehn, told Boersen Zeitung that the slowdown in euro area growth was more than just a dip and that rate-setters should be ready to act.
His remarks were echoed further afield by Bank of Russia governor, Elvira Nabiullina, who said policymakers in Moscow could cut rates again sooner than financial markets were expecting, at their next meeting later in July, and perhaps even by as much as 50 basis points, although they preferred to proceed in smaller steps.
Back on home turf, according to the Society of Motor Manufacturers and Traders, private new car registrations flopped by 4.8% year-on-year in June, which was roughly in line with the 5.1% pace of declines observed over the previous 12 months.
Nonetheless, Samuel Tombs, chief UK economist at Pantheon Macroeconomics, put a brave face on the data, telling clients that auto sales should recover over the third quarter, on the back of "briskly" rising wages and above average levels of consumer confidence.
Further afield, overnight, US National Economic Council director, Larry Kudlow said trade officials from the US and China were already talking and would continue to hold telephone calls over the coming week and schedule face-to-face meetings, Bloomberg reported.
In equity markets, luxury brand Burberry was the standout gainer on the top flight index after an upgrade to 'outperform' from 'neutral' at MainFirst, which also upped its price target on the stock to 2,150p from 1,800p.
Associated British Foods gained after it said group revenue rose 3% for the 40 weeks to June 22 at constant currency as it maintained its outlook for the full year. The company said it expected good profit growth in Primark and, on an underlying basis, in its grocery operations.
Nicholas Hyett, equity analyst at Hargreaves Lansdown, said: "Primark continues to deliver a very impressive performance in a tough retail environment without the aid of the online businesses that’s keeping most retailers’ necks above water. Offering shoppers value for money when rivals are struggling has seen Primark seize market share in the UK, and the proposition is proving attractive overseas too, with a reasonable performance in Europe and promising noises emerging from the fledgling US business.
"The retail performance is unfortunately being soured by the struggling sugar operations, where the end of quotas has seen sugar prices plummet. The good news is that conditions seem to be stabilising. Throw in a good performance from ABF’s branded groceries business, which includes Twinings, Ovaltine and balsamic vinegar brand Acetum, and it looks like the rest of the sprawling empire might finally be set to support rather than undermine the success on the high street.”
Energean Oil & Gas rallied after agreeing to buy Edison's oil and natural gas business for an initial consideration of $750m.
Great Portland Estates ticked higher as it hailed "continued positive activity" over the first quarter, with "healthy" leasing.
Wealth manager Quilter rose after saying it is mulling the sale of its Old Mutual Wealth Life Assurance business as it announced a strategic review of the unit.
Persimmon shares dipped after the housebuilder reported a drop in first-half revenue as its focus on improving customer service meant order intake slowed.
William Hill was in focus as it confirmed plans to close 700 betting shops, putting 4,500 jobs at risk. The bookmaker pointed to a "significant" drop in gaming machine revenues since the government reduced the maximum stake on fixed-odd betting terminals to £2 in April.
Dixons Carphone was also in the spotlight after Retail Week reported that it’s planning to axe 140 jobs across its central functions, mostly at its head office in Acton.
Ex-dividend stocks were taking just under four points off the FTSE 100 and nearly 14 points off the 250, with IAG, Aveva, Coca-Cola HBC, Next, Babcock, Homeserve, Paragon Banking, TalkTalk and Workspace all in the frame.