UK stocks closed lower on Thursday as weak US jobs data intensified worries about slowing growth in the world’s largest economy. The FTSE 100 index fell by 0.4% to 8,269.60, the FTSE 250 dipped 0.1% to 20,785.03, and the AIM All-Share slipped 0.4% to 759.66.
This downturn followed weak US manufacturing data earlier in the week, exacerbating concerns over the health of the US economy. The latest figures showed a softening US labor market, with job openings falling to 7.673 million in July from a revised 7.910 million in June, the lowest level since 2021. This came ahead of the crucial nonfarm payrolls report due Friday, which is expected to influence the Federal Reserve’s approach to interest rate cuts.
In London, Rolls-Royce continued to recover, gaining 1.9%, while Melrose rose 1.3% following a ‘buy’ recommendation from Citi. However, housebuilder Barratt Developments saw its shares fall by 2.9% after reporting a significant drop in annual profits, with pretax profit plunging 76% to £170.5 million and revenue down 22% to £4.17 billion. This decline in Barratt’s performance dragged down other sector players, with Persimmon falling 3.3%, Vistry down 2.5%, and Taylor Wimpey slipping 2.3%.
Luxury goods retailer Burberry fell 3.7% as it faced an expected demotion from the FTSE 100, set to be replaced by insurer Hiscox. Meanwhile, Direct Line dropped 2.2% despite reporting improved interim results, as profits and dividends fell short of market expectations.
In corporate deals, Segro fell 1.3% after agreeing to acquire Tritax EuroBox, which rose 1.6% on the news. The deal values Tritax EuroBox at approximately £1.10 billion, including debt, and follows interest from Brookfield Global Asset Management and other potential suitors earlier this year
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