UK equities edged lower on Thursday afternoon, even as the pound strengthened against the US dollar following a stronger-than-anticipated reading from the UK purchasing managers’ index (PMI), which indicated the fastest growth in a year.
By 11:50 GMT, the FTSE 100 had slipped 0.3%, while the pound dipped 0.01% against the dollar, trading just below the 1.35 mark. In Europe, Germany’s DAX lost 0.3%, and France’s CAC 40 fell 0.7%.
UK Targets Iranian Oil Executive with New Sanctions
The UK government imposed sanctions on Iranian oil tycoon Hossein Shamkhani and four associated companies, citing their support for Tehran’s overseas activities in Ukraine and Israel. The measures include asset freezes on Shamkhani and the companies, which operate across shipping, petrochemical, and financial sectors, according to an official government notice.
UK Business Activity Hits One-Year High
The preliminary S&P Global UK Composite PMI for August rose to 53.0, marking its highest level since August 2024 and a notable improvement from July’s final reading of 51.5. Economists had expected a smaller increase to 51.6.
Government Borrowing Below Expectations
UK borrowing slowed in July, with the government taking on £1.1 billion ($1.48 billion), well below the anticipated £2.6 billion, according to official figures released Thursday.
WH Smith Shares Plunge Following Profit Downgrade
Shares of WH Smith (LSE:SMWH) tumbled more than 31% after the travel retailer disclosed a £30 million accounting misstatement in its North American division and revised its profit forecast downward. The error, stemming from accelerated recognition of supplier income, led the company to lower its expected headline trading profit in North America to around £25 million, down from an earlier projection of £55 million. Overall, WH Smith now anticipates full-year headline profit before tax and non-underlying items of approximately £110 million.
Renishaw Sees Profits Near Top of Guidance Range
Renishaw PLC (LSE:RSW) shares climbed over 5% as the precision engineering firm forecasted full-year 2025 profits toward the upper end of its £109 million–£127 million guidance range. The outlook, close to analyst expectations of £120.5 million, helped alleviate concerns about US tariffs and highlighted accelerated cost savings.
Hays Reports Sharp Profit Decline
Hays Plc (LSE:HAS) shares fell more than 5% after the UK staffing company reported a 57% drop in operating profit for fiscal 2025, down to £45 million, reflecting weak hiring trends. The results aligned with prior guidance and market expectations.
Marks & Spencer Invests £340 Million in Distribution Hub
Marks & Spencer Group PLC (LSE:MKS) revealed plans to invest £340 million in a new automated distribution center in Daventry, central England. The 1.3 million-square-foot facility, slated for 2029, aims to support the company’s goal of doubling its food business. The project is expected to create 1,000 permanent jobs and 2,000 construction roles.
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