The FTSE 100 experienced a slight decline, closing at 8,638 amid investor focus on US tariff developments and consideration of a mixed UK PMI report indicating a private sector output increase driven by services, partially offset by manufacturing weaknesses. Performance varied significantly across sectors, with healthcare and consumer stocks lagging while investment trusts holding US large-cap stocks and mining companies showed strength.
- The FTSE 100 closed marginally down at 8,638.
- Traders were monitoring developments on US tariffs.
- A UK PMI report showed a six-month high in private sector output growth.
- The growth was driven by a rebound in the services sector.
- Manufacturing performance was weak.
- Healthcare and consumer stocks such as Haleon, AstraZeneca, GSK, Hikma, JD Sports, and Marks & Spencer were the main laggards.
- Investment trusts with significant holdings in US large-cap stocks, including Pershing Square Holdings, Polar Capital Technology Trust PLC, and Scottish Mortgage Investment Trust PLC, were the top performers.
- Miners like Antofagasta and Anglo American gained after JPMorgan upgraded the sector to ‘overweight’.
The market’s overall direction seems uncertain given the contrasting forces at play. Sector rotation appears to be occurring, with investors shifting away from traditionally defensive areas like healthcare and consumer staples and into sectors benefiting from US market strength and positive analyst revisions. This mixed picture suggests that careful stock selection and sector allocation will be crucial for investors seeking to navigate the current environment and achieve positive returns.