British stocks slipped in Thursday afternoon trading, while the pound strengthened against the dollar after a stronger-than-expected U.K. purchasing managers’ index survey showed economic growth accelerating to a 12-month high.
As of 1150 GMT, the blue-chip index FTSE 100 dropped 0.3% and the British pound 0.01% against the dollar to below 1.35.
DAX index in Germany fell 0.3%, the CAC 40 in France slipped 0.7%.
Britain targets Iranian oil executive and firms in new sanctions
Britain imposed sanctions on Iranian oil magnate Hossein Shamkhani and four companies as part of its Iran sanctions regime, targeting what it describes as a network supporting Tehran’s overseas activities in Ukraine and Israel.
The sanctions include an asset freeze on Shamkhani and four entities operating in the shipping, petrochemical, and financial sectors, according to a government notice published online.
British business activity hit a one-year high in August.
The preliminary S&P Global UK Composite Purchasing Managers’ Index rose to 53.0, its highest level since August 2024 and a significant improvement from July’s final reading of 51.5.
The increase exceeded economists’ expectations of a modest rise to 51.6.
U.K. government borrowing slows in July
Britain’s government borrowed £1.1 billion ($1.48 billion) in July, according to official data released Thursday.
The borrowing figure came in below economists’ expectations of £2.6 billion for the month.
WH Smith plunges 31% after cutting profit outlook
WH Smith (LON:SMWH) shares plunged more than 31% on Thursday after the travel retailer revealed a £30 million accounting overstatement in its North American business and cut its profit outlook.
The company discovered the misstatement during a financial review ahead of its year-end results, attributing it primarily to accelerated recognition of supplier income in the division.
As a result of the accounting issues, WH Smith now expects headline trading profit from its North American operations to be approximately £25 million for the financial year ending August 31, significantly lower than its previous forecast of around £55 million.
The group has revised its full-year headline profit before tax and non-underlying items to approximately £110 million.
Renishaw shares jump as FY2025 profit seen at top end of guidance
In other market news, Renishaw PLC (LON:RSW) shares rose over 5% on Thursday after the precision engineering group projected its full-year 2025 profit would be toward the upper end of its £109 million to £127 million guidance range.
This outlook, which compares to analyst consensus of £120.5 million, helped ease investor concerns about U.S. tariffs and highlighted faster delivery of previously announced cost savings.
Hays reports 57% profit drop; shares tumble
Meanwhile, Hays Plc (LON:HAYS) shares fell more than 5% after the U.K. staffing group reported that its operating profit for fiscal 2025 dropped 57% year-on-year to £45 million.
The results, which matched recent guidance and consensus expectations, reflected subdued hiring activity.
Marks & Spencer (OTC:MAKSY) invests £340 mln in new U.K. distribution hub
Marks and Spencer Group PLC (LON:MKS) announced plans to invest £340 million in a new automated distribution center in Daventry, central England.
The 1.3 million square feet facility, scheduled to open in 2029, will support the retailer’s goal of doubling the size of its food business. The project is expected to create 1,000 permanent jobs and 2,000 construction jobs.
Additionally, Britain’s government borrowed £1.1 billion ($1.48 billion) in July, according to official data. This figure came in below economists’ expectations of £2.6 billion for the month.
Source :
https://www.investing.com/news/stock-market-news/ftse-100-today-index-slips-uk-pmi-strong-wh-smith-plunges-4204457
