The FTSE 100 struggled for direction on Thursday, closing little changed, with miners and oil stocks providing support and balancing a hefty fall in JD Sports Fashion after a profit warning.
The FTSE 100 index closed up just 4.81 points at 10,748.16. The FTSE 250 ended down 134.86 points, 0.6%, at 24,508.66, and the AIM All-Share closed up 2.55 points, 0.3%, at 804.09.
Weighing on London’s blue-chip index was a 14% fall in JD Sports after the sports retailer cut profit guidance.
In a trading statement, Lancashire-based JD Sports said it now expects financial 2027 pretax profit before adjusting items of £700 million to £800 million, lowered from £750 million to £850 million previously.
At the mid-point of guidance, this would be down 12% from £852 million posted in the 52 weeks to January 31, 2026.
Chief executive Regis Schultz said trading in the quarter “remained tough”, and that guidance “reflects a pragmatic view of external market conditions.”
“The market stayed highly promotional, reflecting the consumer and footwear product cycle headwinds our industry has faced in recent quarters, whilst our core consumer was impacted by incremental cost-of-living pressures,” he said.
Dan Coatsworth, head of markets at AJ Bell, said the update amounts to “yet another setback” for JD.
“There is only so long that shareholders will stay patient, and time is running out for chief executive Regis Schultz to whip the company back into shape,” he added.
In April, the Financial Times reported Andrew Higginson quit as chair of the company after pushing for Mr Schultz to be ousted, but failing to win unanimous backing for the move.
Mr Coatsworth thinks the Rubin family-owned Pentland Group which is the majority shareholder in JD will be getting “frustrated” at the retailer’s progress.
“However, a lot of the problems facing JD are not of its own making, so Pentland might want to choose constructive discussions on strategy rather than simply calling for leadership change,” he thinks.
Meanwhile, bond yields ticked higher after Wednesday’s falls when the US Treasury said it was increasing buybacks of longer-dated treasuries.
Despite the intervention, Susannah Streeter, chief investment strategist, Wealth Club, said the “fundamental pressures remain, with the US national debt reaching record levels and inflationary pressures still bubbling”.
She said the move by the US Treasury could prove to be a “sticking plaster which could be rapidly ripped off, given that bond vigilantes are on such high alert”.
UBS said the action by the Treasury may “help cap near-term yield volatility and reduce the risk of disorderly market moves, but it does not fundamentally alter the outlook for rates.”
The yield on the US 10-year Treasury widened to 4.70% on Thursday from 4.66% at the time of the London equity close on Wednesday.
The yield on the US 30-year Treasury rose to 5.26% from 5.20%.
Also keeping investors wary, another rise in the oil price, as US President Donald Trump pledged “economic warfare” against Iran and threatened any country that trades with it, further dimming hopes of an imminent deal to end nearly six months of war in the Gulf.
Brent oil for October delivery traded at 93.53 dollars a barrel on Thursday, up from 92.40 late Wednesday.
Stocks in New York were lower. The Dow Jones Industrial Average was down 0.7%, the S&P 500 index was 0.4% lower, while the Nasdaq Composite fell 0.9%.
In Europe equities on Thursday, the Cac 40 in Paris closed down 0.6%, while the Dax 40 in Frankfurt declined 0.4%.
The pound traded at 1.3634 dollars on Thursday afternoon, up from 1.3608 at the equities close on Wednesday. Against the euro, sterling firmed to 1.1676 euro from 1.1669.
On the FTSE 100, the firm oil price supported oil majors BP and Shell, up 2.4% and 0.6% respectively, but Investec was down 4.6%, and Legal & General down 3.9%, lagged, with both stocks trading ex-dividend.
Gold miners Fresnillo and Endeavour Mining were prominent risers once again, up 2.7% and 2.1%, as the gold price pushed ahead.
Gold traded at 4,518.45 dollars an ounce on Thursday, up from 4,483.13 on Wednesday.
On the FTSE 250, Trainline fell 9.0%, extending Wednesday’s losses after the UK Competition & Markets Authority opened a formal consumer protection investigation into how mandatory booking fees are presented on its platform.
The CMA is examining whether mandatory train and coach booking fees are included in the total upfront price shown to customers at the start of the booking process.
If it ultimately finds an infringement, the regulator can order customer compensation and impose fines of up to 10% of global turnover.
JPMorgan analyst Lara Simpson said the CMA probe “crystallises an additional layer of conduct and regulatory risk: while visibility on scope and remedies remains low at this stage.”
“We see risk of both: 1) customer refunds/associated fines and 2) forward-looking pressure on monetisation mechanics, as higher fee transparency can screen less competitively at the top of the funnel and increase scrutiny on booking fees, with potential read-through to conversion, perceived value, and brand trust,” she wrote in a research note.
Ms Simpson reiterated an “underweight” rating on Trainline and cut her share price target to 185p from 220p.
Elsewhere, Ashtead Technology slumped 16% as it warned full-year revenue and earnings will be below expectations reflecting project delays due to the Middle East war.
The Aberdeen-based provider of subsea technology to the offshore energy sector now expects full year revenues to be around 5% below the current market consensus of £214.2 million and sees adjusted earnings before interest, tax and amortisation 15% below consensus of £59.2 million.
The biggest risers on the FTSE 100 were Weir, up 108.00p at 2,750.00p, Fresnillo, up 83.00p at 3,168.00p, BP, up 12.90p at 552.20p, Endeavour Mining, up 91.00p at 4,496.00p and Diageo, up 34.00p at 1,723.50p.
The biggest fallers on the FTSE 100 were JD Sports Fashion, down 13.38p at 80.08p, Investec, down 30.50p at 634.00p, Legal & General, down 11.70p at 286.30p, Burberry, down 26.50p at 1,056.50p and Convatec, down 5.00p at 225.60p.
Friday’s global economic calendar has a slew of composite PMI readings including the UK at 0930 BST. In addition, UK retail sales and government borrowing data will be released. Overnight, an inflation print in Japan will be published.
Friday’s UK corporate calendar has half-year results from Hunting.
– Contributed by Alliance News