MARKET REPORT

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 & Qowner 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 last 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.

The ONS said real household disposable incomes fell by 1.4% in the first three months of the year, declining for the third quarter in a row.

The savings ratio also sank to 1.7% in the first quarter, down from 3.3% in the final three months of last year and hitting its lowest level since records began more than 50 years ago.

Despite signs that shoppers are raiding money normally earmarked for their nest eggs in order to keep spending, the statistics agency said the UK economy still only grew by 0.2% in the first quarter.

In UK stocks, the publisher of the Daily Mirror and the Manchester Evening News saw shares rise more than 3%, as it set aside an additional £7.5m to settle phone-hacking allegations.

Shares in Trinity Mirror – owner of the Western Mail – 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 to start from early 2018.

Updating on trading, the company said revenue was expected to fall by 9% on a like-for-like basis for the 26 weeks to July 2.

The biggest risers on the FTSE 100 Index were Mondi, which was 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.

The biggest fallers on the FTSE 100 Index were United Utilities, down 31p to 867.5p, Next, down 120p to 3,856p, Royal Bank of Scotland, down 5.7p to 247.2p, and Marks & Spencer, down 7.2p to 333.3p.