Britain’s benchmark FTSE 100 index edged higher on Thursday, while mid-caps retreated as investors awaited the European Central Bank’s interest rate decision.
As of 0948 GMT, the blue-chip index FTSE 100 was up 0.2% while the domestically-focussed FTSE 250 fell 0.2%.
Shares of Wizz Air plunged 25.9%, weighing heavily on the midcap index, after the budget carrier reported an around 62% slide in annual operating profit, citing capacity constraints due to grounded planes.
The slump rippled through the travel sector with other airline stocks like easyJet and ICAG declining over 1% each.
On the flip side, Dr Martens jumped 23.2% and was the top gainer on the midcap index after the bootmaker announced plans to reduce discounting in key markets, including the US, and forecast a return to profit growth in this financial year.
The ECB rate decision is scheduled for later in the day, with market watchers almost certain the central bank will cut rates by 25 basis points.
Instead, focus will be on bank President Christine Lagarde’s signals about future policy decisions.
Friday’s US non-farm payrolls data will also command attention as evidence mounts of economic damage from President Donald Trump’s tariff policies, following weak jobs and services data for the month of May.
US Defence Secretary Pete Hegseth has said that a defence spending commitment of 5% of GDP across the NATO alliance will happen, ahead of the bloc’s defence ministers’ meeting.
A gauge of the UK’s defence stocks was down 0.4% in the day.
FTSE 100 flat as investors assess mixed corporate earnings
Back home, British construction firms reduced staff numbers last month at the fastest pace in nearly five years, reflecting higher wage costs and reduced demand, a survey showed on Thursday.
Data by the Bank of England revealed 70% of businesses surveyed in May expect no impact on sales, prices or investment plans from US tariffs.
Among other movers, Mitie Group slid 11% after the outsourcing firm suspended 125 million pounds ($169.5 mln) share buyback programme.
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