Footsie gives up early gains to end lower

Blue-chip stocks endured choppy trading on the London market as investors responded to a slew of economic data underscoring the pressure on British consumers.

The FTSE 100 index closed down 37.60 points at 7,312.72, with morning gains on the market turning sour by the afternoon following a widespread slump from retail stocks.

Shares in Next and B&q-owner Kingfisher were down 120p to 3,856p and 5.7p to 300.7p respectively, as the GFK Index showed that consumer confidence was close to lows seen in the aftermath of the Brexit vote.

A flurry of economic updates from the Office for National Statistics (ONS) also painted a grim picture for UK shoppers, as disposable incomes shrank and the amount set aside for savings hit record lows at the start of the year.

David Madden, market analyst at CMC Markets UK, said: “Retail stocks like Dixons Carphone, Kingfisher and Next are some of the biggest fallers on the FTSE 100, as the UK consumer confidence report by GFK pointed to a bleaker outlook.”

Shares in Trinity Mirror rose 3.3p to 98.3p as the firm also announced that it had secured a five-year print and distribution deal for the Guardian and Observer newspapers from early 2018.

Updating on trading, the company said revenue was expected to fall by 9 per cent on a likefor-like basis for the 26 weeks to 2 July. The biggest risers on the FTSE 100 Index were Mondi, up 32p to 2,014p, Smurfit Kappa ,up

36p to 2,396p, Royal Mail, up 6.1p to 421.2p, and

Convatec Group, up 4.4p to 319.2p.