London stocks opened mostly lower on Thursday despite fresh data showing UK public borrowing dropped to its lowest July level in three years. Borrowing came in at £1.05 billion, well below expectations of £1.9 billion.
The FTSE 100 edged 0.1% higher at 9,296.73, lifted by defence names. BAE Systems rose 1.5% and Rolls-Royce added 1.3%, while Melrose Industries gained 1.0% and Babcock advanced 0.7%.
The FTSE 250 slipped 0.2% to 21,852.93, dragged sharply lower by WH Smith. Shares in the retailer collapsed over 35% after a financial review revealed a £30 million overstatement in North American profit expectations. It now expects profit in the region of £25 million, far below the previous £55 million guidance.
On AIM, the All-Share eased 0.1% to 759.20, with Image Scan tumbling 14% after warning it will miss full-year guidance due to supply chain delays, though it did announce new defence-related contracts.
Overnight, Wall Street ended mostly lower after a two-day deep tech sell-off. The Dow managed a fractional gain, but the S&P 500 lost 0.2% and the Nasdaq fell 0.7% as investors digested Federal Reserve minutes. The FOMC signalled a continued focus on inflation, though the meeting took place before weak jobs data sparked talk of a September rate cut.
Attention now turns to Fed Chair Jerome Powell’s Jackson Hole speech on Friday, where he is expected to balance concerns over the labour market with the need to keep inflation in check.