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London close: Stocks slip after stronger-than-expected US jobs data

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London stocks fell as investors reacted to the release of a stronger-than-expected US non-farm payrolls report.

The FTSE 100 was down 0.48% at 8,245.37, while the second-tier index gave back 0.77% to 20,555.37.

Cable meanwhile was down 0.56% to 1.2720 and the yield on the benchmark 10-year Gilt climbed nine basis points to 4.264%.

The non-farm payrolls report revealed 272,000 more persons hired, along with a strong 0.4% rise in average hourly earnings.

However, the unemployment rate, which is derived from a separate survey from the payrolls number, ticked higher from 3.9% in April to 4.0%.

On home shores, data released earlier showed that house prices were largely unchanged last month as the market continued to stabilise.

According to the latest Halifax house price index, average house prices were “static” in May, down just 0.1% on a monthly basis. On an annual basis, house price growth was 1.5%, up from 1.1% in April.

As a result, a typical UK home now costs £288,688.

There wasn’t a whole lot happening on the corporate front, but housebuilder Bellway’s shares slipped despite it keeping its guidance for housing completions this fiscal year, although it did lift its forecast for pricing.

The company now expects selling prices to average £305,000 for the 12 months to 31 July, down from £310,306 last year but ahead of previous guidance of £295,000 due to changes in product mix.

Bellway said it has seen stronger trading through the spring selling seasons, with improved affordability supporting an increase in customer confidence and reservation rates compared to the first half of the financial year.

On the downside, C&C Group plunged after the drinks maker said chief executive Patrick McMahon would be stepping down after accounting errors in the last three years when he was chief finance director.

The company, which makes brands such as Magners cider and Tennent’s beer, said corrections to the accounts would result in an aggregate underlying operating profit adjustment charge of €5m.

C&C released unaudited results for the year to February 29 revealing a loss before tax of €111m compared with a profit of €52m a year earlier.

Market Movers

FTSE 100 (UKX) 8,245.37 -0.48%
FTSE 250 (MCX) 20,555.37 -0.77%
techMARK (TASX) 4,843.03 -0.19%

FTSE 100 – Risers

Compass Group (CPG) 2,240.00p 1.73%
Pearson (PSON) 961.80p 1.63%
Diploma (DPLM) 4,190.00p 1.20%
Whitbread (WTB) 3,024.00p 1.04%
IMI (IMI) 1,856.00p 0.87%
CRH (CDI) (CRH) 6,080.00p 0.80%
Weir Group (WEIR) 2,098.00p 0.67%
National Grid (NG.) 869.20p 0.60%
Convatec Group (CTEC) 251.80p 0.56%
Barclays (BARC) 217.25p 0.51%

FTSE 100 – Fallers

Fresnillo (FRES) 559.00p -5.73%
Prudential (PRU) 731.60p -4.01%
Intermediate Capital Group (ICG) 2,238.00p -3.71%
Persimmon (PSN) 1,441.50p -3.32%
Antofagasta (ANTO) 2,145.00p -3.12%
Kingfisher (KGF) 261.90p -2.46%
SEGRO (SGRO) 905.00p -2.37%
Rentokil Initial (RTO) 421.40p -2.34%
Experian (EXPN) 3,663.00p -2.14%
easyJet (EZJ) 463.10p -2.11%

FTSE 250 – Risers

NCC Group (NCC) 144.60p 3.29%
Great Portland Estates (GPE) 339.50p 2.26%
Ferrexpo (FXPO) 46.00p 2.22%
Essentra (ESNT) 171.40p 1.90%
Chemring Group (CHG) 384.00p 1.59%
GCP Infrastructure Investments Ltd (GCP) 78.20p 1.56%
North Atlantic Smaller Companies Inv Trust (NAS) 4,120.00p 1.48%
Ninety One (N91) 158.90p 1.40%
4Imprint Group (FOUR) 6,050.00p 1.34%
Foresight Solar Fund Limited (FSFL) 89.30p 1.25%

FTSE 250 – Fallers

C&C Group (CDI) (CCR) 156.40p -7.57%
Endeavour Mining (EDV) 1,652.00p -5.98%
IP Group (IPO) 49.85p -4.50%
Centamin (DI) (CEY) 115.10p -3.76%
Safestore Holdings (SAFE) 846.50p -3.64%
Workspace Group (WKP) 576.00p -3.54%
Future (FUTR) 1,109.00p -3.14%
Hochschild Mining (HOC) 181.00p -3.10%
Pagegroup (PAGE) 440.00p -3.00%
LondonMetric Property (LMP) 199.10p -2.97%

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