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LONDON MARKET MIDDAY: Europe mixed as UK construction optimism sinks

4th Sep 2025 12:02

(Alliance News) - London stocks remained mostly higher at midday on Thursday, as UK construction optimism sank to its lowest level in two and a half years.

The FTSE 100 index was up 18.07 points, 0.2%, at 9,196.06. The FTSE 250 was up 166.04 points, 0.8%, at 21,479.11, and the AIM All-Share was down 7.40 points, 1.0%, at 761.07.

The Cboe UK 100 was up 0.2% at 922.29, the Cboe UK 250 was up 0.7% at 18,760.96, and the Cboe Small Companies was up 0.1% at 17,090.77.

In European equities on Thursday, the CAC 40 in Paris fell 0.2%, while the DAX 40 in Frankfurt gained 0.7%.

"Gold eased on Thursday, retreating from record highs as investors secured their profits following the asset’s long winning streak. Despite the pullback, the metal remains well supported by expectations of Federal Reserve easing, persistent concerns over central bank independence, and heightened geopolitical risks," commented Exness analyst Eric Chia.

Gold was quoted at USD3,540.07 an ounce around midday in London on Thursday, down against USD3,565.82 late on Wednesday. It reached a new record of USD3,580 earlier on Wednesday.

Chia continued: "Signs of a softer US labour market continued to reinforce the case for policy loosening. Job openings in July were lower than expected, while Fed Governor Christopher Waller joined other officials in signalling that rate cuts should begin this month. Markets are now focused on jobless claims and Friday’s nonfarm payrolls for confirmation of weakness."

Stocks in New York were called mostly higher. The Dow Jones Industrial Average was called flat, the S&P 500 index up 0.2%, and the Nasdaq Composite also 0.2% higher.

The yield on the US 10-year Treasury was quoted at 4.19%, narrowing from 4.22%. The yield on the US 30-year Treasury was quoted at 4.87%, trimmed from 4.91%.

Meanwhile, the UK's construction sector remained mired in contraction in August, with activity falling for the eighth consecutive month, led by steep declines in the housing and civil engineering sectors, survey data from S&P Global showed Thursday.

The headline S&P Global UK construction purchasing managers' index rose to 45.5 points in August from 44.3 in July – which had marked a more than five-year low – but remained well below the neutral 50.0-point mark that separates growth from contraction.

August's reading signalled another solid drop in total construction output, although the rate of decline moderated slightly from July.

Just 34% of construction firms surveyed expected activity to rise over the next year, down from 37% in July and the weakest level of optimism since December 2022. Companies cited elevated economic uncertainty and client risk aversion, though some were hopeful about potential boosts from lower borrowing costs and infrastructure projects.

Currys held the top spot on the FTSE 250 around midday, up 17%.

The London-based electronics retailer launched a new GBP50 million share buyback, and said group like-for-like sales rose 3% in the 17 weeks to August 30.

In addition, the company announced the completion of the pension triennial review which will see contributions fall in future years. The actuarial deficit as of March 31 reduced to GBP134 million from GBP403 million as of March 31 2022. Currys will pay GBP82 million of contributions this year as planned with future contributions of GBP13 million per annum over five years to March 2031, reduced from GBP78 million per annum to December 2028.

Currys said it remains "comfortable" with market consensus for full-year group adjusted pretax profit of GBP170 million, which would be up 3.1% from GBP162 million in financial 2025. Longer-term, Currys continues to target at least 3% adjusted earnings before interest and tax margin in both the UK&I and the Nordics.

Shield Therapeutics rose 37%.

The Newcastle, England-based commercial-stage pharmaceutical company said Accrufer/Feraccru, its oral treatment for those with iron deficiency with or without anaemia, has been accepted by the US Food & Drug Administration as a clinical supplement.

Further, it has assigned priority review to extend the drug's indication to include patients aged below 10. The company noted that approval is expected next year, subject to successful review.

At the other end, essensys fell 9.3%.

The London-based provider of software and cloud services for flexible workspace industry expects to report revenue of GBP19.2 million for the year that ended July 31, falling 20% from GBP24.1 million the year before due to "customer churn in the platform and network business".

The firm anticipates a return to growth however, with adjusted earnings before interest, tax, depreciation and amortisation of at least GBP1.3 million expected for the year, compared to a loss of GBP900,000 a year earlier. "We are confident that essensys is well positioned to be the trusted software and technology partner for the industry's long-term growth," said Chief Executive Officer James Lowery.

The pound was quoted up at USD1.3455 at midday on Thursday in London, compared to USD1.3448 at the equities close on Wednesday. The euro stood lower at USD1.1658, against USD1.1679. Against the yen, the dollar was trading higher at JPY148.23 compared to JPY147.95.

Brent oil was quoted lower at USD66.56 a barrel at midday in London on Thursday from USD67.62 late Wednesday.

Still to come on Thursday's economic calendar, US ADP private payrolls data at 1315 BST and weekly jobless claims figures 1330. There is also a US services sector PMI at 1445.

By Emily Parsons, Alliance News reporter

Comments and questions to [email protected]

Copyright 2025 Alliance News Ltd. All Rights Reserved.


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