Legal & General Group (LGEN)

LONDON (ShareCast) - (Sharecast News) - London equities ended the week on a positive note, with investors reacting to stronger-than-expected US labour market data.
The FTSE 100 index rose 0.3% to close at 8,837.91 points, while the FTSE 250 advanced 0.42% to 21,157.28 points.

In currency markets, sterling was last down 0.28% on the dollar to trade at $1.3532, while it gained 0.13% against the euro, changing hands at €1.1873.

"A stronger-than-expected US jobs report led to US stock indices gaining over a percent across the board," said IG senior technical analyst Axel Rudolph.

"These gains came despite US wages rising more than expected and a very public falling out between US president Trump and his former advisor Elon Musk which completely overshadowed the German chancellor's visit to the White House.

"A Trump-Xi phone call in which both leaders pledged to continue negotiations also helped sentiment."

Rudolph noted that European stocks also rallied, after eurozone GDP growth marked its strongest expansion since the third quarter of 2022.

"The only exception was the German DAX 40 index which suffered from its smallest trade surplus in six months.

"In the UK, house price growth slowed to a 10-month low."

US nonfarm payrolls come in higher than expected, UK house prices fall

In economic news, hiring in the US accelerated modestly in May, with non-farm payrolls rising by 139,000, slightly above forecasts of 130,000, according to the Department of Labor.

The gain marked the slowest pace in three months and followed a downwardly revised April figure of 147,000.

Employment growth was led by healthcare, leisure and hospitality, and social assistance, while federal government jobs declined.

Average hourly earnings rose 0.4% month-on-month, pushing the annual increase to 3.9%.

The unemployment rate held steady at 4.2%.

On home shores, UK house prices fell slightly in May after a spring rebound.

Data from Halifax showed a 0.4% drop in prices last month, reversing a 0.3% rise in April.

The average property price now stood at £296,648.

Despite the dip, annual house price growth remained positive at 2.5%, with the lender describing the market as stable.

"These small monthly movements point to a housing market that has remained largely stable, with average prices down just 0.2% since the start of the year," said Amanda Bryden, head of mortgages at Halifax.

"The market appears to have absorbed the temporary surge in activity over spring, which was driven by the changes to stamp duty."

On the continent, the eurozone economy expanded more strongly than previously estimated in the first quarter, with GDP growth revised up to 0.6%, the fastest pace since the third quarter of 2022.

The annual growth rate was also revised higher to 1.5%, from an earlier estimate of 1.2%.

Employment in the region rose 0.2% over the quarter and 0.7% year-on-year.

However, retail sales slowed to 0.1% in April, in line with expectations, following a 0.4% increase in March.

Germany's industrial production and exports meanwhile both declined more sharply than expected in April.

Output fell 1.4% on the month, led by a steep drop in pharmaceutical production and weaker machinery output.

Exports dropped 1.7%, while imports rose 3.9%, resulting in a trade surplus of €14.6bn - well below the forecasted €20.2bn.

Dr Martens rises further, defence stocks in the red

On London's equity markets, Dr Martens climbed 6.76%, building on Thursday's sharp rally after the company reaffirmed 2026 guidance and outlined a turnaround strategy under new CEO Ije Nwokorie.

The bootmaker's decision to reduce discounting in key regions continued to bolster investor confidence.

Trainline rose 2.94% after being named a technology supplier by the Rail Delivery Group for a new pay-as-you-go ticketing trial, supporting optimism over its digital capabilities.

Insurers Prudential and Phoenix Group gained 0.99% and 1.48% respectively after Deutsche Bank upgraded both stocks to 'buy', citing improved outlooks.

On the downside, defence stocks pulled back after recent strength.

Babcock International fell 4.07%, QinetiQ lost 3.93%, and BAE Systems declined 1.77% as investors locked in profits.

Legal & General slipped 0.54% following a downgrade to 'hold' from 'buy' at Deutsche Bank.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,837.91 0.30%
FTSE 250 (MCX) 21,157.28 0.42%
techMARK (TASX) 4,942.17 0.37%

FTSE 100 - Risers

Standard Chartered (STAN) 1,186.00p 2.91%
3i Group (III) 4,265.00p 2.77%
Flutter Entertainment (DI) (FLTR) 18,435.00p 2.56%
Hiscox Limited (DI) (HSX) 1,351.00p 1.89%
Barclays (BARC) 333.20p 1.88%
Aviva (AV.) 626.80p 1.82%
Sainsbury (J) (SBRY) 278.60p 1.60%
Coca-Cola Europacific Partners (DI) (CCEP) 6,860.00p 1.33%
Fresnillo (FRES) 1,342.00p 1.28%
Barratt Redrow (BTRW) 446.10p 1.27%

FTSE 100 - Fallers

Babcock International Group (BAB) 1,053.00p -4.34%
Anglo American (AAL) 2,217.00p -3.34%
Antofagasta (ANTO) 1,895.50p -2.67%
BAE Systems (BA.) 1,930.50p -2.60%
Airtel Africa (AAF) 177.90p -2.09%
Glencore (GLEN) 288.10p -1.62%
SEGRO (SGRO) 677.00p -1.25%
Pearson (PSON) 1,095.50p -1.13%
Diageo (DGE) 1,933.00p -1.05%
Experian (EXPN) 3,763.00p -1.02%

FTSE 250 - Risers

W.A.G Payment Solutions (WPS) 79.80p 8.72%
Dr. Martens (DOCS) 81.95p 8.69%
Raspberry PI Holdings (RPI) 476.60p 5.21%
CMC Markets (CMCX) 247.00p 5.11%
PayPoint (PAY) 742.00p 3.20%
PPHE Hotel Group Ltd (PPH) 1,558.00p 3.04%
Aston Martin Lagonda Global Holdings (AML) 83.50p 2.95%
Caledonia Investments (CLDN) 3,875.00p 2.92%
TP Icap Group (TCAP) 269.00p 2.87%
NextEnergy Solar Fund Limited Red (NESF) 71.00p 2.75%

FTSE 250 - Fallers

QinetiQ Group (QQ.) 550.50p -3.76%
Endeavour Mining (EDV) 2,312.00p -3.10%
Hochschild Mining (HOC) 302.40p -2.95%
Burberry Group (BRBY) 1,077.50p -2.84%
Wizz Air Holdings (WIZZ) 1,174.00p -2.73%
THG (THG) 23.56p -2.32%
Ferrexpo (FXPO) 47.20p -2.18%
WH Smith (SMWH) 1,053.00p -2.05%
AJ Bell (AJB) 488.60p -1.92%
Mitie Group (MTO) 136.20p -1.73%