Stock prices in London closed lower on Thursday, falling into the red after downbeat early trade in New York, before eyes turn to a US inflation reading on Friday.

The FTSE 100 index closed down 69.67 points, 0.7%, at 10,402.44. The index spent the bulk of the day in the green, before declining as the afternoon progressed.

The FTSE 250 ended down 111.55 points, 0.5%, at 23,304.99, and the AIM all-share closed down 4.13 points, 0.5%, at 811.16.

Stocks in New York were lower, with tech shares bearing the brunt of the declines. The Dow Jones Industrial Average was down 0.8%, the S&P 500 index lost 1.1%, and the Nasdaq Composite shed 1.6%.

The yield on the US 10-year Treasury was quoted at 4.12%, narrowing from 4.17%. The yield on the US 30-year Treasury was quoted at 4.76%, narrowing from 4.81%.

The latest number of new US unemployment insurance claims was 227,000 in the week that ended February 7, a decline of 5,000 from last week’s revised figure of 232,000, data published by the US Department of Labour showed.

The latest reading exceeded market consensus for 222,000 initial jobless claims.

“Attention now turns to the upcoming inflation release,” said Naga analyst Frank Walbaum.

“Headline and core prices are expected to rise 0.3% on the month. An upside surprise would likely push yields higher and strengthen the dollar by dampening [Federal Reserve interest rate] easing bets. Conversely, if figures come in line with expectations, the currency could remain confined to consolidation, particularly as investors remain attentive to leadership dynamics at the Fed and what they may imply for the policy outlook in 2026.”

Meanwhile, in the UK, the economy eked out modest growth at the end of 2025.

According to the Office for National Statistics, real GDP rose 0.1% in the fourth quarter from the third, matching the prior quarter’s expansion, but below the FXStreet-cited consensus of 0.2% growth.

For 2025 as a whole, the economy grew 1.3%, up from 1.1% in 2024. However, back in November on the day of the UK Government budget release, the Office for Budget Responsibility expected UK GDP growth of 1.5% for 2025.

The pound was quoted at 1.3628 dollars at the time of the London equities close on Thursday, lower compared with 1.3640 dollars on Wednesday. The euro stood at 1.1869 dollars, higher against 1.1861 dollars. Against the yen, the dollar was trading at 152.56 yen, down sharply from 154.23 yen.

In European equities on Thursday, the CAC 40 in Paris closed up 0.3%, while the DAX 40 in Frankfurt closed flat.

On the FTSE 100, Schroders was the best-performing stock, jumping 30% after the fund manager agreed to an all-cash takeover by a subsidiary of Nuveen.

The deal values Schroders at up to £9.9 billion, 612 pence per share.

Separately, Schroders reported 2025 results, with assets under management rising 6% to £823.7 billion and statutory pre-tax profit increasing 21% to £673.8 million.

Admiral rose 3.4%. The Cardiff-based insurer is buying commercial motor insurer Flock in a deal which values the latter’s equity at £80 million.

“This acquisition aligns with the group’s commitment to continuously evolve and futureproof its motor proposition and broaden its product offering,” Admiral said.

It plans to close the deal in the second quarter and expects the purchase to reduce its solvency ratio by less than 10 points, leaving its financial position “well in excess of target levels”.

On AIM, Sancus Lending surged 11% after increasing its existing credit facility with Pollen Street Capital to £300 million and extending its maturity to no earlier than February 11 2031.

The property-backed lender said the extension reflects strong recent operational and financial performance and continued confidence from its funding partner.

TPXimpact jumped 16%, after announcing a £39 million, four-year contract with the UK’s Department for Environment, Food and Rural Affairs under its Digital, Data & Technology “capability as a service” model.

TPXimpact said it was awarded the deal following a competitive tender process, strengthening its existing role as an incumbent provider within the department.

Brent oil was quoted at 68.08 dollars a barrel at the time of the London equities close on Thursday, down from 69.82 dollars late on Wednesday.

“Oil prices have experienced volatility today, as markets react to geopolitical uncertainty and inventory data,” said Tickmill’s Joseph Dahrieh.

“The unresolved tensions between the United States and Iran remain the primary focus. The absence of any firm decisions following diplomatic talks has kept the geopolitical risk premium alive, supporting prices.”

He further noted that “the market faces headwinds from the bearish data… US crude stockpiles surged by 8.5 million barrels last week, a figure that exceeded expectations of a much smaller increase and confirmed earlier API data hinting at a build-up”.

Hurt by the fall in the oil price, Shell lost 0.9% and BP fell 1.0%.

Moving in lockstep with gold, meanwhile, miner Fresnillo gave back 4.1%.

Gold was quoted lower at 4,932.33 dollars an ounce against 5,055.15 dollars.

The biggest risers on the FTSE 100 were Schroders, up 135.00p at 592.00p, DCC, up 190.00p at 5,190.00p, Relx, up 74.65p at 2,087.65p, Admiral, up 94.00p at 2,824.00p, and BT, up 6.20p at 210.20p.

The biggest fallers on the FTSE 100 were Prudential, down 86.31p at 1,075.19p, Rentokil, down 24.95p at 447.35p, Standard Chartered, down 84.50p at 1,730.00p, Fresnillo, down 160.00p at 3,768.00p, and Endeavour, down 150.00p at 4,426.00p.

On Friday’s economic calendar, the US has its latest consumer price index reading.

On Friday’s UK corporate calendar there are full-year results from NatWest.

Contributed by Alliance News