The FTSE 100 experienced a modest increase on Thursday as investors evaluated corporate announcements alongside economic indicators that hinted at possible vulnerabilities. Notably, Burberry saw an uptick following an upward revision of the price target by HSBC for the luxury goods manufacturer. The blue-chip FTSE 100 was up 0.1% by 11:15 on Thursday, while the midcap FTSE 250 added 0.3%. S&P Global’s monthly purchasing managers’ index indicated that British construction activity experienced its most rapid contraction since May 2020. Simultaneously, the rate of job losses intensified in the previous month, as evidenced by the employment index reaching its lowest point since August 2020. The survey’s measure of optimism reached a level not seen in nearly three years, as cost pressures experienced a slight uptick.
On the equities front, personal goods stocks led sectoral gains, adding 2.8%, with Burberry rising 3.5%. Aerospace and defence shares were on track to gain for a third straight session after Russia-Ukraine peace talks stalled. Rolls-Royce and BAE Systems were up more than 1%. Precious metal miners dropped 1.4%, tracking bullion prices, with Fresnillo and Endeavour Mining down more than 1.4% each.
On Thursday, the British energy regulator Ofgem announced its approval of a substantial investment amounting to 28 billion pounds aimed at enhancing the nation’s grid capacity. Utilities shares fell, led by a 2.1% decline in power generator SSE, while United Utilities, National Grid, and Severn Trent also came under pressure. Among individual stocks, AJ Bell fell 6.7% after the investment platform warned of added costs and indicated that the budget would introduce complexity to the individual savings account landscape.
Diageo fell 0.8% after UBS cut the spirits maker’s price target to 1,850 pounds from 2,250 pounds. Pharma giant AstraZeneca experienced a decline of 0.7%, while lender Barclays saw an increase of 1.2%. In November, British investors divested equities amounting to 3 billion pounds, representing the sixth consecutive month of net selling, as reported by funds network Calastone.