FX.co ★ UK Stocks Start May on Cautious Note

On Thursday, the UK's FTSE 100 closed with marginal change, ending almost flat at 8,497 after an impressive 13-day rally that brought the index to its highest level in four weeks. Investor sentiment remained cautious, influenced by ongoing economic uncertainties, tepid economic data, and a mix of corporate earnings results. In domestic news, the UK manufacturing sector continued to encounter challenges in April, with final PMI figures indicating sustained contraction. Export demand witnessed a significant decline, the steepest in nearly five years, as it grappled with increased cost pressures from U.S. tariffs and domestic employer tax hikes. In terms of individual stock performance, St. James's Place led the gains, followed by Whitbread, buoyed by cautious optimism and a share buyback initiative, and housebuilder Persimmon after releasing its trading update. Conversely, Lloyds suffered a drop of over 2.5%, ranking at the bottom of the index, as the bank increased its provisions for bad debts in Q1, cautioning about potential repercussions from U.S. tariffs.