15-05-2025
UK's FTSE 100 flat as investors weigh mixed earnings, economic data
May 15 (Reuters) - Britain's FTSE 100 was largely unchanged on Thursday as investors weighed mixed corporate earnings and fresh UK GDP data, while markets awaited upcoming remarks from U.S. Federal Reserve Chair Jerome Powell due later in the day.
The blue-chip FTSE 100 (.FTSE), opens new tab rose 0.05% by 1010 GMT, while the domestically focused midcap index (.FTMC), opens new tab declined by 0.14%.
The energy index (.FTNMX601010), opens new tab fell by 2.9% as oil prices dropped 3% on expectations of a U.S.-Iran nuclear deal that could lead to sanctions easing on the middle eastern country.
Among individual stocks, Sage (SGE.L), opens new tab was the biggest drag on the blue-chip index as the software firm reported that while small business customers have cash, they remain reluctant to spend due to U.S. tariff uncertainties. Despite this, Sage maintained its full-year growth forecast, although its shares plunged 6%.
In contrast, National Grid (NG.L), opens new tab shares climbed 3.3% after the renewable energy firm exceeded annual profit estimates.
Sports retailer JD Sports (JD.L), opens new tab gained 3.2% after reports of American retailer Dick's Sporting Goods (DKS.N), opens new tab nearing a deal to buy rival Footlocker (FL.N), opens new tab.
On the economic data front, Britain's economy grew more strongly than expected in first quarter of 2025, providing a boost to the government and finance minister Rachel Reeves, who faces challenges ahead due to her tax hike on businesses and the impact of U.S. President Donald Trump's trade wars.
"UK businesses and consumers alike appear remarkably resilient" said Matthew Ryan, head of market strategy at global financial services firm Ebury.
"Yet, with neither the tax hikes nor the tariffs coming into force until April, these risks are yet to be truly reflected in the data, and we think that a slowdown in activity appears almost inevitable in the second quarter".
Last week, the Bank of England's surprisingly hawkish stance slashed June rate cut expectations, with markets now anticipating quarterly rather than consecutive cuts.
Later in the day, investors will be closely monitoring U.S. Fed Chair Jerome Powell's remarks for insights into the monetary policy outlook for the world's largest economy.
