FTSE 100 slips as pound weakness weighs on sentiment

​​​FTSE 100 extends decline from recent peaks

​The UK's benchmark index continued its retreat from recent highs, with mining and energy stocks leading the decline. Base metals prices eased during the session, putting pressure on major commodity producers within the index.

​Oil prices also softened, weighing on energy sector heavyweights. The broader weakness in commodity markets reflected concerns about global demand, particularly from China where economic data has disappointed.

​The index's decline comes despite a relatively quiet week for UK economic data. With the market lacking fresh catalysts, currency movements and sector-specific news have driven trading activity.

​Investors remain cautious ahead of key economic releases scheduled for the coming weeks. The FTSE 100's performance has become increasingly tied to currency fluctuations given the international earnings base of its constituent companies.

​Sterling faces its toughest week since January

​The British pound is on track for a 1.3% weekly decline, marking its worst performance in nine months. Sterling has underperformed most G-10 currencies despite recent hawkish comments from Bank of England officials.

​The currency's weakness comes as the US dollar maintains its strength across global markets. Even with limited US economic data due to the government shutdown, the greenback has held firm against major peers.

​UK labour market shows signs of stabilisation

​A joint survey from KPMG and REC revealed that hiring activity slowed at its softest pace in a year. The data suggests the UK jobs market may be finding a steadier footing after months of uncertainty.

​The slowdown in hiring decline points to potential stabilisation in employment conditions. Companies appear less inclined to reduce headcount aggressively, even as economic concerns persist.

​However, the picture remains mixed across different sectors and regions. Some industries continue to face significant challenges, whilst others are showing resilience in their workforce planning.

​The labour market data will be closely watched by the Bank of England (BoE) as it considers future policy decisions. Employment trends remain a key factor in the central bank's inflation outlook.

​Corporate updates hit individual stocks

​Hays suffered after reporting an 8% decline in quarterly fees, warning that near-term conditions remain challenging. The recruiter highlighted particular weakness in permanent hiring, reflecting broader caution among employers.

​Share prices in the recruitment sector came under pressure following the update. The news reinforced concerns about the health of the jobs market despite the more positive KPMG survey.

Ibstock crashed 15% to a nine-year low after cutting profit expectations for the second time this year. The building materials group's warning highlighted ongoing difficulties in the construction sector.

​On a more positive note, AstraZeneca announced a further £376 million investment in its Virginia manufacturing site. The pharmaceutical giant's commitment takes its total investment at the facility to £3.4 billion, demonstrating confidence in long-term growth prospects.

​European markets hold steady amid French political uncertainty

​The STOXX Europe 600 traded flat as gains in automotive and banking stocks offset weakness in healthcare. Stellantis rose 1.5% after reporting higher shipment numbers, providing support to the broader European market.

​French equities edged higher despite political uncertainty surrounding the appointment of a new prime minister. Investors are monitoring President Macron's decision closely, though markets have so far shown limited reaction.

​The relative stability in European markets contrasts with the weakness seen in London. Currency movements and sector composition differences continue to drive performance divergence across European indices.

​Looking ahead, attention will turn to upcoming earnings releases and economic data. The eurozone faces its own set of challenges, including concerns about manufacturing activity and inflation trends.

​Princes confirms London IPO plans

​Food manufacturer Princess, maker of Branston Pickle, has confirmed plans to float on the London Stock Exchange in October. The company intends to offer a free float large enough to qualify for FTSE index inclusion.

​The announcement provides a rare boost for the London listing landscape, which has struggled to attract major flotations recently. Success for the Princes initial public offering (IPO) could encourage other companies considering UK listings.

​The food sector has proven resilient during economic uncertainty, making it an attractive proposition for investors. Princes' diverse brand portfolio and market position should support investor interest.