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Late market roundup: London muted as investors await week of earnings

London’s FTSE 100 closed broadly flat on Monday, in a muted day of trading ahead of the coming week’s slew of economic data and earnings reports.

The FTSE 100 index rose just 2.09 points at 8,417.34. The FTSE 250 advanced 123.62 points, 0.6%, at 19,733.31, and the AIM All-Share gained 2.90 points, 0.4%, at 675.75.

The Cboe UK 100 rose 0.1% to 838.93, the Cboe UK 250 climbed 0.8% at 17,261.86, while the Cboe Small Companies gained 0.1% at 15,262.11.

‘Recent developments have been helpful from a market perspective as US President Donald Trump dialled down the rhetoric around replacing current Federal Reserve chair Jerome Powell and hinted at progress on trade talks. Suggestions of a de-escalation in the tariff stand-off with China were also well received,’ remarked Russ Mould at AJ Bell.

At the time of the London close, the Dow Jones Industrial Average traded 0.1% lower, the S&P 500 fell 0.6%, while the Nasdaq Composite declined 1.1%.

Four of the ’Magnificent 7’ report earnings this week, with numbers from Amazon, Meta Platforms, Apple and Microsoft set to hit the wires. In London, a busy week sees results from lenders Barclays, Lloyds, NatWest and HSBC, oil majors BP and Shell, and pharmaceuticals firm AstraZeneca.

On Wednesday, a preliminary estimate of US economic growth in the first quarter will be released with April’s US jobs report, including nonfarm payrolls, to follow on Friday.

ING notes GDP consensus is for around 0.4% growth quarter-on-quarter annualised, although the range of expectations is wide at plus 1% to negative 1%, depending on how economists feel the sharp front-loading of imports will be offset against some positive investment trends.

Citi expects first quarter GDP to contract 0.3% on an annualised basis with the drag partly due to a surge in imports.

The broker expects nonfarm payrolls to rise 105,000 in April, a slowdown from 228,000 in March, but with an unchanged unemployment rate of 4.2%.

‘Soft data and projections tell a more concerning story, but for now hard data is solid enough to keep the Fed paused. Over the next few months, we expect hard data to begin to follow soft data, with the unemployment rate rising, provoking the Fed to resume rate cuts,’ Citi added.

JPMorgan is also in wary mood.

‘The hard data continue to highlight strength but it increasingly looks like we are reaching peak front-loading. The survey data are falling faster and point to a material deceleration. Whether this turns to recession will depend on the degree to which the US backpedals its war on trade. Beyond any near-term outcome, the risk is that the dismantling of the global trading order will do permanent damage,’ the broker said.

In Paris on Monday, the CAC 40 ended up 0.5%, while Frankfurt’s DAX 40 climbed 0.1%.

In Madrid, the IBEX 35 closed up 0.8%, despite a massive blackout which hit Spain, Portugal and parts of southern France. Grid operators said millions of people were impacted.

The cause for the outage was not immediately reported.

Spain’s railway operator Adif said that the power cut halted trains across the entire country, while airports operator Aena said ‘several incidents’ occurred in Spanish airports.

Developments in the US-China trade war continue to be closely watched.

On Monday, US Treasury Secretary Scott Bessent put the responsibility for reaching a trade agreement on China.

‘I believe that it’s up to China to de-escalate, because they sell five times more to us than we sell to them, and so these 120%, 145% tariffs are unsustainable,’ Bessent said during an interview on CNBC’s Squawk Box.

But Beijing on Monday said that the US should approach dialogue with China in a ‘fair, respectful and reciprocal’ manner.

‘If the US really wants to solve the problem through dialogue and consultation, it should stop its threats and extortion,’ foreign ministry spokesman Guo Jiakun said at a news conference.

Against the yen, the dollar was trading lower at JP¥142.73 on Monday at the London equities close compared to JP¥143.88 on Friday. The pound traded higher at $1.3389 compared to $1.3313 on Friday.

The euro stood higher at $1.1384 on Monday against $1.1372 on Friday.

Entain was the big winner on the FTSE 100, jumping 6.8%, after it said its US joint venture BetMGM swung to a profit in the first quarter of 2025.

The London-listed sports betting and gaming company said BetMGM reported first-quarter earnings before interest, taxes, depreciation and amortisation of $22 million, compared to a $132 million loss a year earlier.

BetMGM is jointly owned by Entain and MGM Resorts International.

Davy Research said it is a ‘reassuring’ update with ‘no evidence of a weaker US consumer’.

Housebuilder Berkeley Group benefited from an upgrade by UBS to ’buy’ from ’neutral’, gaining 1.0%.

‘Berkeley offers high short-term earnings visibility, sector leading through cycle returns and an underappreciated opportunity to generate value from Build to Rent portfolio,’ the Swiss bank said in a research note.

On the FTSE 250, Deliveroo jumped 17% after Friday’s 180 pence per share offer from San Francisco-based DoorDash.

On Friday, Deliveroo said that it would be ‘minded to recommend such an offer to Deliveroo shareholders, subject to the agreement of the other terms’ if a firm offer were made at that level.

Deliveroo said it has decided to engage with DoorDash regarding the offer and has provided access to due diligence.

Jefferies sees a small probability of a counter-bidder emerging and expects to see the 180p preliminary indication of interest evolve over the next 28 days into a recommended offer.

But Sean Kealy at Panmure Liberum doesn’t view the offer as a ‘knockout valuation’ and sees ‘potential for Deliveroo to receive a counterbid’.

Brent oil was quoted higher late on Monday in London at $65.52 a barrel, against $66.68 late on Friday.

Gold traded at $3,326.61 an ounce on Friday against $3,279.17 on Friday.

The global economic diary on Tuesday has a eurozone consumer confidence print and US trade figures.

The domestic corporate calendar on Tuesday sees half-year results from AB Foods, first quarter results from BP, AstraZeneca and HSBC Holdings, plus trading statements from Howden Joinery and Beazley.

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