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Highlights
Retail volumes see unexpected drop, impacting major supermarket chains
Berkeley Group (LON:BKG) anticipates lower, citing market volatility
FTSE 100 gains despite weaker retail and housebuilding sentiment
The ftse 100 index advanced as sentiment improved following geopolitical developments, despite significant pressure from weaker retail sector data and a subdued outlook from major housebuilder Berkeley Group Holdings plc (LON:BKG). Comparatively, the broader ftse 350 and ftse indices saw similar mixed performances as corporate and macroeconomic updates weighed on specific sectors.
Retail Sector Faces Headwinds
The retail segment saw a downturn after the latest national data revealed a decline in volumes for May. Food retailers were among the most impacted, particularly supermarkets which experienced reduced demand amidst wider inflationary pressures and increased utility costs from April.
J Sainsbury plc (LON:SBRY) posted slight losses, while Marks and Spencer Group plc (LON:MKS) also saw downward movement. Tesco plc (LON:TSCO), however, remained resilient with gains on the day, defying the broader sector weakness. This came despite an industry-wide contraction, signaling differentiated performance within the food retail space.
Berkeley Group Reports Lower Expectations
Berkeley Group Holdings plc (LON:BKG), listed on the ftse 100, released its annual results alongside a forecast pointing to decreased over the current and following financial years. The company noted continued operational strength despite challenges in the broader economic and housing environment.
The developer, focused on brownfield regeneration, attributed the reduced outlook to macroeconomic uncertainty and shifting market dynamics. The announcement saw Berkeley’s share price move lower as investors reacted to the expected earnings trajectory.
Aerospace and Aviation Lift Broader Index
Melrose Industries plc (LON:MRO), operating in the aerospace sector, was among the leading risers, contributing positively to the ftse 100. The performance was attributed to continued confidence in its aerospace division and market activity within the industrials segment.
International Consolidated Airlines Group SA (LON:IAG), parent to British Airways, also advanced, reflecting a recovery in sentiment around travel and aviation. Gains across these stocks helped offset losses in the retail and property sectors.
Banking Sector Supports Gains
Standard Chartered plc (LON:STAN) added support to the index, posting gains amid a backdrop of improving global market sentiment. Relief from immediate geopolitical tensions contributed to its performance, aligning with broader momentum in financials during the session.
Broader Market Movement
Despite headwinds from weaker-than-anticipated retail performance and cautious outlooks in housing, the ftse 100 maintained upward movement. This came alongside gains in industrials, aviation, and banking, which together cushioned the index from further downside.
Investors also tracked overseas markets, where indices in Paris and Frankfurt outperformed, with London’s main benchmark showing a comparatively moderate rebound. The market response reflects an ongoing tug-of-war between sector-specific challenges and broader global sentiment shifts.
