FTSE 100 closes down despite strong results from WPP and Diageo
London stocks ended mixed. FTSE 100 fell 0.2% to 10,867.89 despite strong results from WPP and Diageo. FTSE 250 rose 0.3% to 24,695.42. S&P Global said UK construction PMI rose to 44.7 in July from 38.4. Diageo gained 5.6% on 2026 results and a cost plan; WPP rose 29% on guidance.
How this was made
The 30-second read
Why it matters
Company-specific earnings and guidance updates (WPP, Diageo, Admiral, Persimmon) explain most of the stock-specific upside, while UK construction PMI and Euro retail sales point to ongoing demand pressure. The upcoming US jobs report is positioned as a key driver for rates and risk sentiment.
Market read
Traders get same-day catalysts for several UK large caps, but the macro backdrop remains mixed with construction still contracting and Euro retail sales weaker.
What to watch
The text highlights construction contraction and weaker Euro retail sales, which can cap follow-through even after company-specific guidance beats.
Background
This is a London market wrap noting FTSE 100 weakness despite strong company results, alongside UK construction PMI and broader macro signals.
Ticker impact
WPP shares jumped 29% on the day after it backed annual guidance following a “sequential improvement” in its second quarter.
Bullish bias for the next session(s), with follow-through dependent on whether investors view the uplift as durable.
The article ties the outsized move directly to guidance and a specific operational improvement, which typically drives short-term repricing.
Diageo rose 5.6% after CEO Dave Lewis announced financial 2026 results and a strategic plan to return value to shareholders.
Positive near-term drift, especially if investors interpret the plan as credible cost and execution leverage.
The stock move is explicitly linked to newly disclosed results and a strategy update, which can change forward expectations.
Vodafone was among the biggest FTSE 100 risers, up 4.9p to 119.3p, in a session where the index fell despite other winners.
Low conviction; likely sentiment/flow-driven unless corroborated by separate news.
Vodafone is listed as a top riser, but no discrete fundamental trigger is described in the text.
Market effects
UK construction PMI remains in contraction (below 50) despite easing, reinforcing caution on UK cyclical demand.
Eurozone retail sales were weaker than expected, adding to a softer consumer backdrop in Europe.
US jobs report is upcoming, and the article frames how payroll strength could lift yields and pressure equities.
Counterpoint
WPP and Diageo strength may be more about relative beats and cost narratives than a durable macro rebound, so upside could fade if UK growth data stays weak.
Key entities
- companyWPP
Backed annual guidance after a sequential improvement in Q2, driving a large share jump.
- companyDiageo
Reported financial 2026 results and launched a strategic plan, lifting the stock.
- companyAdmiral
Said early motor pricing changes position it for an upturn and expects stronger H2 profits.
- companyPersimmon
Posted better-than-forecast interim results but warned UK housebuilding remains challenging.
- companyEasyJet
Accepted an Apollo offer after Castlelake withdrew, moving the bidding process forward.
