London’s FTSE 100’s best winning streak since 2017 pauses on grim earnings, Llyods down 3%
London’s FTSE 100 was muted on Thursday after its longest gaining streak since 2017, with a slate of disappointing earnings weighing on sentiment.
The export-heavy FTSE 100 was little changed by the close after advancing for 13 straight sessions. London’s domestic-oriented FTSE 250 gained 1.3%. Most continental European markets were closed for a holiday.
The OMX Copenhagen 25 Index gained 0.7%, with Novo Nordisk A/S climbing 2.1% as the pharmaceutical firm said its semaglutide study showed benefits for liver treatment. CVS Health Corp.’s drug-benefits unit also negotiated a deal to make Novo’s Wegovy more widely available to its members.
Lloyds Banking Group Plc dropped 2.6% as it missed earnings expectations and set aside more to prepare for a worsening economy. European stocks recovered in the second half of April after US President Donald Trump paused some levies.
A better-than-expected earnings season has also lifted risk appetite. However, a sense of caution set in again after data showed that the American economy contracted at the start of this year. Trump said on Wednesday he had “potential deals” with South Korea, Japan, and India but that he was “in less of a hurry” than those expressing anxiety over the economy.
“We expect tariff talk to ramp up again even if a deal emerges from this 90-day pause,” said Panmure Liberum strategist Susana Cruz. “So the recovery and European growth might remain capped.” She added that the FTSE 100 should continue to outperform, given its focus on income and quality stocks.
Latest figures on Thursday showed US manufacturing activity shrank in April by the most in five months. In other individual stocks, GN Store Nord AS sank 12% after the wireless technology producer cut its full-year organic revenue and profitability forecasts, citing the impact of tariffs.
