FTSE 100 closed higher - just - as the Dow Jones in the US rallied amid an easing over trade war tensions.
Britain's blue chip index closed up around seven points, or 0.10%, at 7,139, while FTSE 250 was equally lacklustre, adding just around eight points at 19,828.
There was no major UK data releases out today, but the US had initial jobless claims, the import price index and the NY Empire State manufacturing, which all appeared to bolster sentiment.
"Whilst data on Thursday was a mixed bag, investors didn't dwell on the weaker than forecast Philadelphia Business outlook; instead choosing to focus on an upbeat reading on continuing jobless claims, and increasing import prices," said Fiona Cincotta, the senior market analyst at City Index.
"These indicators point to the continued tightening of the labour market and increasing inflationary pressures, enough to keep the dollar content."
On Footsie, financial stocks did well. Standard Life Aberdeen (LON:SLA) added 1.83% to 372.6p and was top gainer. Hargreaves Lansdown (LON:HL.) was also higher - up 1.71% to 1,729p.
On the losing front, real estate giant Hammerson (LON:HMSO) shares shed 4.86% to stand at 434.40p after the investment bank Credit Suisse downgraded the stock to 'neutral' from 'outperform', and slashed the price target to 460p from 650p previously. .
Traditional shopping centres are likely to see a decline in footfall as the popularity of online shopping increases, reckons the bank.
Hammerson shares have fallen to its lowest level since June 2012.
The UK financial watchdog is investigating whether companies are correctly assessing customers' ability to repay loans on cars amid concerns about a rise in consumer credit.
The Financial Conduct Authority said it will review if firms are properly reviewing customers' finances to see whether they can afford to buy the car they are offered on a loan, particularly those with low credit scores.
The regulator will also look at the risk around commission arrangements for dealers and if the detail provided to customers allows for informed decision-making.
"We are undertaking further work on responsible lending, particularly the approach taken by motor finance lenders to assessment of creditworthiness," the FCA said. "Our work will be primarily... focused on assessments for higher credit risk consumers."
The Bank of England has raised concerns about consumer debt as it expects to raise interest rates again this year after its first hike in more than a decade in November 2017.
Online real estate agent Purplebricks Group PLC (LON:PURP) are in the red after UBS repeated a 'sell' rating on the stock and cut its target price to 285p from 305p.
UBS also reduced its long-term market share assumption for Purplebricks to 12% from 15%.
"Our latest UBS Evidence Lab property listings tracker up to 5-Mar-18 indicates that growth may be slowing for Purplebricks, with 'Subject to Contracts' (STC) market share remaining broadly constant at c.5% since September 2017," the bank said.
"Given the importance of the Spring Market, we believe that this level of progress will be below management's expectations, and will raise questions around the potential market share Purplebricks is able to achieve."
Shares are down 4.5% to 343p.
Sky PLC (LON:SKY) has entered into a confidentiality agreement with 21st Century Fox Inc (NASDAQ:FOXA) and Walt Disney Co (NYSE:DIS).
The agreement will allow Sky to disclose information to the two companies that could be relevant in Disney's attempt to buy Fox assets, including its stake in Sky.
Fox is separately trying to buy the 61% stake in Sky that it does not own but a review by the Competition and Markets Authority found that it would give Rupert Murdoch too much sway on the news. Fox is currently in negotiations with regulators over protections for Sky to get the deal approved.
Last month Comcast offered a rival bid for Sky of US$31bn. Murdoch has called on regulators in Brussels and London to pursue in-depth investigations of Comcast's broadcasting and competition compliance record, and the unusual structure of its bid.
Two gauges of manufacturing sentiment in the US remained strong in March despite worries over trade policy.
The Empire State index, rose to 22.5 in March from 13.1 in February, compared to expectations of 15.
The Philadelphia Fed index fell to a reading of 22.3 this month from 25.8 in February, a slight miss on analysts' forecasts of 23.
However, both gauges are well above the 0 mark that indicates improving conditions.
The underlying details of the Philly Fed were much stronger than the headline with the new orders gauge rising to 35.7 from 24.5 and the shipments gauge increasing to 32.4 from 15.5. The prices paid index dipped 2 points to 42.6 but compared to the highest reading since 2011 last month.
In the New York region, the shipment gauge gained 14.5 points to 27 while new orders rose 3.3 points to 16.8. Prices paid edged up to 50.3 from 45, the highest level in six years.
"The headline indexes of key regional manufacturing surveys were mixed in early March but the underlying details were decidedly better," said Berenberg.
"The manufacturing community appears to be shrugging off global trade policy uncertainties stemming from the steel and aluminium tariff announcements earlier this month. With this apparent non-reaction from manufacturers, so far, we continue to expect robust gains in business fixed investment this year."
US homebuilders' confidence fell slightly in March, according to the National Association of Home Builders.
The housing market index, which measures sentiment, dropped to 70 in March from a downwardly revised 71 in February. Economists were expecting a reading of 72.
NAHB: Builder Confidence Declines to 70 in March #Calculatedrisk #risk #Future pic.twitter.com/n5L1r7W0AY
- Jeff Purkey (@FinanceRef) 15 March 2018Despite the slight dip, a reading of 70 is still strong if you compare it to the days of the housing bubble in 2004-05 when the index averaged 68.
"Builders' optimism continues to be fueled by growing consumer demand for housing and confidence in the market," and pointed only to challenges finding buildable lots as headwinds," said NAHB.
US stocks are mixed in early deals amid fears about a potential international trade war after Donald Tump imposed tariffs on steel and aluminium imports.
The Dow Jones Industrial Average rose 62 points to 24,819 and the S&P was flat at 2,750 while the Nasdaq dropped 5 points to 7,492.
The White House is considering fresh imports on Chinese goods after last week implementing tariffs on steel and aluminium imports.
On this side of the pond, the FTSE 100 is little changed at 7,134 points.
US import prices rose 0.4% in February from a downwardly revised 0.8% increase in January, the Labor Department revealed.
Economists were expecting a 0.2% increase, the government revealed.
A sharp rise in the price of imported capital goods offset a drop in petroleum prices.
In the 12 months through February, import prices increased 3.5%, in line with forecasts, after rising 3.4% in the year through January.
The report also showed export prices climbed 0.2% in February after rising 0.8 % in January. Export prices grew 3.3% year-on-year after rising 3.4% in January.
On Tuesday, data revealed consumer price inflation eased back to 0.2% month-on-month in February from 0.3% a month earlier. In the year to February, CPI grew 2.2%, up from 2.1% in the year to January.
US stocks look set to open slightly higher with the Dow Jones Industrial Average and S&P 500 recovering after three days of declines on fears about an international trade war.
Dow futures increased 76 points to 24,864 and S&P futures rose 5.85 points to 2,759. Nasdaq futures gained 12 points to 7,070.
President Donald Trump said on Wednesday that his administration will seek to trim the US trade deficit with China by US$100bn, a day after announcing the US will impose up to US$60bn in tariffs on Chinese goods.
Turning to today's agenda, the Labor Department revealed the number of people who filed for unemployment claims last week fell by 4,000 to 226,000, against forecasts of 228,000. The four-week moving average fell by 75,000 to 221,500 last week.
"The US employment market has remained on a steady course of late, and with the latest figures showing a further fall in initial claimants, Donald Trump will surely use the opportunity to champion his job-boosting credentials as he embarks on the formative stages of a re-election campaign," said Dennis de Jong, managing director at UFX.com.
"With talk of an imminent trade war with China spooking the markets, the President must now be careful in his next steps to balance American pride with a precarious jobs market that's not out the woods yet."
On the company front, Solid Biosciences Inc (NASDAQ: SLDB) shares plunged 56% to US$11 in pre-market trading after saying a study of its SGT-001 Duchenne muscular dystrophy treatment was placed on clinical hold by the Food and Drug Administration.
Dollar General Corp (NYSE:DG) shares jumped 6% to US$95 ahead of the opening after the discount retailer's fourth quarter same-store sales exceeded forecasts and it issued a positive outlook on earnings.
The FTSE 100 is holding onto its gains despite concerns about a possible trade war with the US. After rising around 14 points at 7,146 at the open, the index is up 8 points to 7,141 at midday.
President Donald Trump has decided to impose tariffs on steel and aluminium imports, which led to the resignation of his chief economic advisor, Gary Cohn, after a disagreement between the two over the move.
"Not only are investors concerned about an international trade war, in terms of more UK-specific issues a 25% post-profit warning plunge from consumer goods firm PZ Cussons sparked losses for its FTSE 100 cousins Reckitt Benckiser and Unilever, the latter already upsetting people by announcing it was shifting its main headquarters to Rotterdam," said Connor Cambell, financial analyst at Spreadex.
Afternoon Market Comment: Markets begin to flatten out ahead of US open... https://t.co/tx8URSSctD
- Connor Campbell (@ConnorSpreadex) 15 March 2018Hammerson PLC (LON:HMSO) shares fell more than 5% to 430p after the property company went ex-dividend and Credit Suisse downgraded the stock to 'neutral' from 'outperform'.
GKN PLC (LON:GKN) shares dropped 2.2% to 427p after Airbus warned that it might have to stop giving business to the engineer if shareholders vote in favour of a hostile takeover bid from Melrose Industries PLC (LON:MRO).
On the upside, Tesco PLC (LON:TSCO) shares rose 2.9% to 216p after JP Morgan Cazenove upgraded stock in the supermarket giant to 'overweight' from 'neutral'.
Prudential PLC (LON:PRU) continued to rally after announcing plans to spin-off its UK and European business M&G and saying it will sell ?12bn worth of annuities from its UK portfolio. Shares rose 1.3% to 1,944p.
Cineworld Group plc (LON:CINE) gained 2.9% to 247p after reporting an increased in 2017, driven by a strong line-up of blockbuster films.
US President Donald Trump has confirmed Larry Kudlow as the next head of the White House National Economic Council.
Kudlow is a conservative media analyst who served as Trump's informal economic advisor during the 2016 campaign,
Larry Kudlow will be my Chief Economic Advisor as Director of the National Economic Council. Our Country will have many years of Great Economic & Financial Success, with low taxes, unparalleled innovation, fair trade and an ever expanding labor force leading the way! #MAGA
- Donald J. Trump (@realDonaldTrump) 15 March 2018He succeeds Gary Cohn, a former Goldman Sachs executive who worked for Trump for over a year before announcing his resignation earlier this month over disagreements about the president's decision to impose tariffs on steel and aluminium imports.
Melrose has responded to remarks by GKN and the engineer's biggest customer Airbus warning against its hostile takeover bid.
Christopher Miller, the chairman of Melrose, said the plan to invest in GKN is the "right way forward" for the company.
On GKN's deal to merge its automotive business with Dana Incorporate, Miller said: "We are certain that GKN's new strategy of hasty short-term business break up will not benefit the long-term requirements of customers.
"In the aerospace segment, we note that GKN has received approaches for that division, while at the same time contemplating a flawed sale of its auto division to a US buyer.
"As a result, the aerospace unit will be disproportionately burdened with gross pension liabilities, restricting potential investment and innovation."
Shares in Melrose are down 1% to 218p.
Airbus said it would no longer give business to GKN if the engineer is taken over by turnaround specialist Melrose Industries PLC (LON:MRO).
Shares in GKN fell 1.9% to 429p.
GKN - which makes wing components and other aircraft parts from Airbus -turned down a third and final offer from Melrose on Monday, saying it "fundamentally undervalues" the business. The offer will be put to shareholders for a vote.
Airbus, GKN's biggest customer, said the takeover would make it "practically impossible" to keep working with the engineer.
"Airbus fully supports industry development and consolidation through M&A activities," Airbus chief operating officer Tom Williams was quoted in The Financial Times as saying.
"However, the nature of our industry is one that requires a commitment to long-term investment and strategic vision. The industry does not lend itself to shorter term financial investment which naturally reduces R&D budgets and limits vital innovation."
In response, GKN chairman Mike Turner said: "The comments from Airbus that stress the need for long-term investment and strategic vision in our industry emphasise our firmly held belief that Melrose is not an appropriate owner of GKN.
"Its management lacks the relevant experience and its short-term business model is inappropriate for GKN's customers and investors."
He added: "As we have previously stated, and as these comments from Airbus reinforce, winning new business in our markets would be more difficult if customers were uncertain as to the identity of their future long-term partners."
As Unilever announced its decision to choose Rotterdam as its main headquarters, rival PZ Cussons PLC (LON:PZC) issue a profit warning that has sent its shares down more than 17%.
Cussons, which owns the Imperial Leather brand, said trading has worsened since its half year and profits will miss annual targets due to problems in the UK and Nigeria.
For the full year to May, profits will be ?80mln- ?85mln, down from ?103.5mln a year ago.
"Consumer confidence remains an issue in the UK, due to economic uncertainty and high inflation/low wage growth conundrum. Inflation is also dampening demand and prices in Nigeria," said Mike van Dulken, head of research at Accendo Markets.
"A cost cutting review has also been announced, focusing on less packaging and fewer, simpler but bigger projects. But will this be enough?"
Unilever plc (LON:ULV) has chosen Rotterdam as its main headquarters over London but insists Brexit was not a factor in its decision.
The consumer goods giant, which owns Dove and Marmite, said the move amid at making the group a "simpler, more agile and more focused business".
The decision follows a review into its dual corporate structure, which was kicked off after turning down a ?115bn takeover approach from US food giant Kraft Heinz a year ago.
The Netherlands offers better protection against hostile takeovers than the UK.
Unilever said its 7,300 employees in the UK and 3,100 in the Netherlands would be unaffected by the changes and it will keep its building at Blackfriers in London. It will move a small number of people from London to Rotterdam.
The FTSE 100 opened its account in positive territory, though dealers were cautious as the prospect of a trade war loomed.
The index of blue-chip shares was up 14 points at 7,146.79, but on rather muted trade volumes.
Lee Wild, head of equity strategy at Interactive Investor, doesn't see too much to cheer as we head further into the Thursday session.
"It's been a miserable week for equity traders so far, and a three-day losing streak still risks becoming four as bulls search for reasons to keep buying," he said.
"Having passed several key support levels during the decline from its January high, the FTSE 100 faces another crucial test at 7,100 in the days ahead.
"The index has already been below the threshold a handful of times in recent weeks, and sUBSequent recoveries have grown progressively weaker.
"Blame this failure to inspire confidence on the lack of any obvious near-term positive catalysts, either here or in the US."
The morning's lead riser was Tesco (LON:Tesco) after the influential analysts at JP Morgan Cazenove upgraded stock in the supermarket giant to 'overweight' from 'neutral'. The shares were up 1.7% as a result.
On the debit side, property giant Hammerson (LON:HMSO) was knocked back 4% after Credit Suisse took out the red pen and downgraded the shares to 'neutral' from 'outperform'.
That is somewhat at odds with the stance taken by Coronation Asset Management, which increased its Hammerson holding in the company to 9% from 8%. Hammerson shares were also trading ex-dividend today. Anglo American PLC (LON:AAL) also went ex-dividend, sending shares down 1.3%.
Synairgen plc (LON:SNG), a developer of respiratory drugs, has all the building blocks for another successful year. Key going forward will be the company's collaboration with Pharmaxis developing Lysyl Oxidase type 2 (LOXL2) inhibitor PXS-5382 to treat lung and liver fibrosis, which has entered phase I clinical trials.
Vast Resources PLC (LON:VAST) told investors that it continues to "make good progress" with Mercuria Energy Trading to close the proposed US$9.5mln pre-payment off-take agreement. The company confirmed that it has now issued 565mln share warrants, in accordance with the approvals granted at last month's shareholder meeting.
Amryt Pharma PLC (LON:AMY) has licensed a non-viral gene therapy platform technology with potential applicability across a range of genetic diseases, including epidermolysis-bullosa (EB). The technology has been licensed from University College Dublin and involves the delivery of gene therapy using high branched poly (??-amino ester) polymer technology.
MySQUAR Limited (LON:MYSQ) has announced the release of its new strategy card mobile game, Wushu King, which focuses on elements of both Chinese and Myanmar folklore.
Redx Pharma Plc (LON:REDX) has announced that its abstract has been accepted for presentation as a poster at the American Association for Cancer Research Annual meeting in Chicago in April.
Midatech Pharma Plc (LON:MTPH, NASDAQ:MTP), the pharmaceutical company focused on oncology and immunotherapy, said Dr Jim Phillips, is to step down as chief executive officer. He will be succeeded by COO, Dr Craig Cook.
Sareum Holdings Plc said a partner developing its lead drug candidate will provide a poster presentation at a top cancer conference taking place next month. Sierra Oncology will outline late-breaking preclinical results for SRA737 at the American Association of Cancer Research in Chicago.
Scotgold Resources Limited (LON:SGZ) has agreed to sell its French business, which owns the French exploration licence. The conditional sale would see Scotgold receive ?,?100,000 as an initial cash payment, along with up to ?,?900,000 of potential deferred cash payments.
African Battery Metals PLC (LON:ABM) posted a higher loss in 2017 as it switched its focus to cobalt in the DRC from gold exploration in Sierra Leone. Roger Murphy, chief executive, said: "In 2018, we expect to significantly advance our exploration activities in battery metals, especially cobalt. Big Pic on Tuesday.
Diversified Gas & Oil plc (LON:DGOC) has landed a US$500mln credit facility which is intended to fund the ambitious oiler as it acquires a large portfolio of assets in the United States. Earlier this month it closed the acquisition of Alliance Petroleum, adding 13,000 wells (addressing some 49mln barrels of reserves) in a deal worth US$95mln and it is approaching a close for a separate US$85mln acquisition which will deliver 11,000 wells (addressing 69mln barrels).
The FTSE 100 looks for a fairly static start to Thursday's trading session as investors remain cautious due to the prospect of a trade war.
CFD and spreadbetting firm IG Markets calls the FTSE 100 at 7,140 to 7,144, which with about hour to go before the open suggests a mid-market price that's only 0.5 points higher than Wednesday's close.
Wall Street stocks fell on Wednesday, with the blue-chip benchmarks closing in the red. The Dow Jones shed 248 points or 1% to trade at 24,758, while the S&P 500 pulled back 0.57% to finish at 2,749. The Nasdaq, meanwhile, dipped 0.19% to 7,496.
"Concerns over an all-out trade war with China escalated on Wednesday, resulting in another day of losses on Wall Street," said Jasper Lawler, analyst at London Capital Group.
"Investors are growing increasingly nervous as Trump rebuilds a White House team which is more in line with his interventionist approach to foreign policy and as reports surfaced that Trump is looking to put $60 billion of tariffs in imported goods from China, no longer just steel and aluminium.
"This is expected to be the last straw for China, with retaliation to this latest move almost a given."
In Asia, Japan's Nikkei was up 26 points or 0.12% trading at 21,803. Hong Kong's Hang Seng was up 52 points or 0.17% at 31,488, whereas the Shanghai Composite was down 0.25% at 3,283. Australia's ASX 200 was on the back foot, down 0.24% at 5,920.
Finals: Old Mutual PLC (LON:OML), Cineworld PLC (LON:CINE), Curtis Banks Group PLC (LON:CBP), Forbidden Technologies plc (LON:FBT), Just Group PLC (LON:JUST), Kier Group PLC (LON:KIE), Manx Telecom PLC (LON:MANX), Oakley Capital Investments Ltd (LON:OCI), OneSavings Bank PLC LON:OSB), Phoenix Group Holdings PLC (LON:PHNX), Portmeirion Group PLC (LON:PMP), Savills PLC (LON:SCS), Spirax-Sarco Engineering PLC (LON:SPX), TMT Investments PLC (LON:TMT)
Trading update: Amryt Pharma PLC (LON:AMYT)
Ex-dividends: To knock 1.4 points off FTSE 100 index - Anglo American PLC (LON:AAL), Hammerson PLC (LON:HMSO)
Economic data: US weekly jobless claims; Philly Fed business outlook; Empire State manufacturing