Legal & General Group (LGEN)

LONDON (ShareCast) - (Sharecast News) - London markets ended slightly higher on Wednesday, buoyed by corporate earnings despite concerns over a deteriorating outlook for the UK construction sector.
The FTSE 100 added 0.24% to close at 9,164.31, while the FTSE 250 edged up 0.11% to 21,925.88.

In currency markets, sterling strengthened 0.47% against the dollar to last trade at $1.3361, but slipped 0.13% against the euro to €1.1474.

The gains came as investors weighed a mixed bag of earnings and fresh economic data.

Danni Hewson, head of financial analysis at AJ Bell, noted, "After running out of steam yesterday, the FTSE 100 made another modest move higher.

"Concerns around tariffs remain, but optimism over trade talks with China supported global sentiment."

UK construction slumps sharply in July

In economic news, fresh data showed UK construction activity contracted at its fastest pace in over five years last month.

The S&P Global construction PMI fell to 44.3 in July from 48.8 in June, well below the 50.0 threshold indicating growth.

Economists had expected no change.

The decline was driven by sharp drops in residential and civil engineering work, with firms citing project delays, weaker demand, and lower public sector activity.

Joe Hayes of S&P Global described the data as a "fresh setback," adding that forward-looking indicators show "UK constructors are preparing for challenging times ahead," as firms reduce materials purchases and headcount.

Matt Swannell, chief economic advisor to the EY ITEM Club, urged caution over reading too much into the survey, noting official data has shown more resilience this year.

However, he acknowledged that uncertainty, elevated labour costs, and higher taxes are weighing on the sector, with a mixed outlook for housebuilding and broader economic growth expected to remain subdued into 2026.

In the eurozone, construction PMI data also signalled continued weakness.

The bloc-wide index slipped to 44.7 in July, with France recording the steepest contraction at 39.7.

Italy's PMI dipped into negative territory at 48.3, while Germany's edged up but remained weak at 46.3.

Norman Liebke of Hamburg Commercial Bank said all three major sectors - residential, commercial, and civil engineering - contracted, and "new orders continue to decline, while employment remains under pressure."

Separately, eurozone retail sales rose more than expected in June, up 3.1% year-on-year, bolstered by strong demand for non-food products.

ING analysts said resilient consumer demand is helping to support growth amid external trade pressures, aided by a historically low unemployment rate and easing inflation.

Germany's economic data disappointed, with factory orders falling 1% in June, contrary to expectations of a 1% rise.

A sharp 23.1% drop in transport equipment orders - including aircraft and military vehicles - drove the decline, raising concerns about the resilience of Europe's largest economy.

Hiscox rallies, Glencore and Coca-Cola HBC slide

On London's equity markets, Hiscox shares surged 9.44% after the insurer posted strong growth in written premiums and raised its dividend and share buyback programme, despite facing significant claims from wildfire losses.

Beazley also gained, up 2.83%, while Telecom Plus rose 2.88% on the back of earnings.

Vesuvius climbed 1.52% despite reporting a steep decline in first-half profits, citing challenging market conditions and pricing pressures.

The company said cost savings and market share gains helped mitigate the impact.

On the downside, Coca-Cola HBC dropped 6.88% after indicating its full-year outlook remains at the top end of guidance.

Despite "strong" first-half results, the market appeared cautious.

Glencore fell 5.41% as it reported a 14% drop in adjusted earnings amid weaker coal prices and lower copper volumes.

The company confirmed it would retain its London listing after considering a move to New York, but AJ Bell's Hewson noted, "Rather than a ringing endorsement of UK listings, this reflects Glencore's current struggles, including operational issues and a mounting debt pile."

Legal & General slipped 2.03% despite delivering solid results, with first-half core operating profit up 6%.

Investors seemed underwhelmed, with Hewson noting that "a modest beat of expectations was not enough to get investors excited," as the firm continued its strategic reshaping under CEO António Simões.

TP ICAP shed 8.14% even after reporting record interim revenue and a 10% rise in earnings.

Promotional products group 4imprint fell 9.68% as revenues dipped 1% and the company highlighted difficulties in customer acquisition, despite a modest rise in profits.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 9,164.31 0.24%
FTSE 250 (MCX) 21,925.88 0.11%
techMARK (TASX) 5,290.22 -0.15%

FTSE 100 - Risers

Hiscox Limited (DI) (HSX) 1,379.00p 9.44%
Fresnillo (FRES) 1,655.00p 8.88%
Diageo (DGE) 1,983.50p 4.18%
BP (BP.) 430.35p 3.09%
London Stock Exchange Group (LSEG) 10,100.00p 3.02%
Beazley (BEZ) 927.00p 2.83%
Vodafone Group (VOD) 85.64p 2.50%
Kingfisher (KGF) 273.80p 2.39%
Centrica (CNA) 168.35p 2.28%
Airtel Africa (AAF) 211.80p 2.22%

FTSE 100 - Fallers

Coca-Cola Europacific Partners (DI) (CCEP) 6,710.00p -9.20%
Coca-Cola HBC AG (CDI) (CCH) 3,652.00p -6.88%
Glencore (GLEN) 284.75p -5.41%
Relx plc (REL) 3,646.00p -4.40%
Pearson (PSON) 1,083.50p -3.86%
Marks & Spencer Group (MKS) 335.00p -3.01%
Croda International (CRDA) 2,581.00p -2.49%
Smurfit Westrock (DI) (SWR) 3,225.00p -2.18%
Legal & General Group (LGEN) 256.20p -2.03%
International Consolidated Airlines Group SA (CDI) (IAG) 374.30p -1.84%

FTSE 250 - Risers

Vistry Group (VTY) 616.00p 4.44%
Harbour Energy (HBR) 204.20p 3.39%
PPHE Hotel Group Ltd (PPH) 1,760.00p 3.17%
Crest Nicholson Holdings (CRST) 188.10p 3.13%
Travis Perkins (TPK) 581.50p 2.92%
Telecom Plus (TEP) 1,926.00p 2.88%
Senior (SNR) 185.00p 2.78%
Ithaca Energy (ITH) 175.00p 2.34%
Sirius Real Estate Ltd. (SRE) 106.40p 2.31%
Hays (HAS) 63.35p 2.18%

FTSE 250 - Fallers

4Imprint Group (FOUR) 3,265.00p -9.68%
TP Icap Group (TCAP) 282.00p -8.14%
Auction Technology Group (ATG) 348.50p -5.17%
Mitie Group (MTO) 143.00p -4.03%
Future (FUTR) 711.00p -2.40%
Rank Group (RNK) 157.00p -2.24%
Genuit Group (GEN) 383.00p -2.05%
Gamma Communications (GAMA) 1,070.00p -2.01%
BH Macro Ltd. GBP Shares (BHMG) 386.50p -1.78%
RHI Magnesita N.V. (DI) (RHIM) 2,230.00p -1.55%