FTSE moved higher but lags European peers after BT shares slip
The FTSE 100 moved 0.25%, or 19.07 points lower to finish at 7,742.3.
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Your support makes all the difference.The FTSE 100 made gains on the back of an uptick in broad trading sentiment despite a slump by telecoms giant BT.
Shares in the company tumbled by 5% on Thursday after it said it would cut up to 55,000 jobs by the end of the decade, with thousands lost in favour of artificial intelligence (AI) and automated services.
It came as the company reported a 12% decline in its pre-tax profit to £1.7 billion over the past year, and a slight dip in revenues.
The update and a similar negative reception to the latest trading update from Burberry dragged on the FTSE compared to European peers.
The FTSE 100 moved 0.25%, or 19.07 points lower to finish at 7,742.3.
The other key European markets made sharper increases as they were led by more cheery earnings updates as well as early optimism regarding the US debt ceiling talks.
The Dax rose by 1.33% and the Cac 40 increased by 0.64% at the close as a result.
The afternoon session has seen a modest retreat from the highs of the day, with US markets initially acting as a drag, before pulling higher on comments from House Republican Kevin McCarthy that a debt ceiling deal could be on the floor of the house by next week
Michael Hewson, chief market analyst at CMC Markets UK, said: “European markets got off to a strongly positive start to the day in early trading, with the Dax pushing up to its best levels this year, as it looks to retest the record highs set at the back end of 2021.
“The FTSE rebound has been much more modest, with the telecoms sector once again acting as a ball and chain around the index’s progress.
“The afternoon session has seen a modest retreat from the highs of the day, with US markets initially acting as a drag, before pulling higher on comments from House Republican Kevin McCarthy that a debt ceiling deal could be on the floor of the house by next week.”
Meanwhile, sterling drifted against the resurgent dollar amid concerns over the UK economy and particularly the country’s housing market.
The pound was down 0.55% to 1.241 US dollars but up by 0.06% to 1.152 euros at market close in London.
Elsewhere in company news, British fashion group Burberry dropped in value after the group failed to improve its previous medium-term revenue targets, highlighting that it was “mindful” of the global economic backdrop.
But the retail business revenues grew by 10% to £3.1 billion over the year to April 1 as it benefited from the rebounding Chinese market over the latest quarter. Shares fell by 131p to 2,389p at the close of play.
Aston Martin Lagonda shareholders had more to cheer after Chinese carmaker Geely grew its stake in the business with a fresh £234 million investment.
Shares in Aston Martin climbed by 28.8p to 260p after Geely said it would buy shares from top shareholder Lawrence Stroll.
The price of oil slipped back as it came under pressure from the strength of the US dollar.
Brent crude oil decreased by 0.99% to 74.71 US dollars per barrel.
The biggest risers on the FTSE 100 were JD Sports, up 9.65p at 172.65p, Convatec, up 10.8p at 226p, Ashtead group, up 161p at 4,960p, Standard Chartered, up 18p at 642.6p, and DCC, up 132p at 4,990p.
The biggest fallers of the session were Burberry, down 131p at 2,389p, BT, down 7.4p at 140.7p, Ocado, down 12.6p at 397.7p, National Grid, down 32.5p at 1,108p, and Centrica, down 2.95p at 116.8p.