In early trading on Friday, May 24, 2024, the FTSE 100 dropped by 0.9%, while the FTSE 250 fell by 0.4%, mirroring losses in Asian markets. This decline was driven by robust U.S. economic data indicating prolonged high interest rates. National Grid shares, which had plunged nearly 11% on Thursday, rebounded by 7.7%. Intertek Group's shares rose by 3% after the firm reconfirmed its 2024 forecast. Meanwhile, AJ Bell’s shares fell by 4.5% after its founder sold a significant shareholding.
In corporate news, Royal Mail's parent company, International Distributions Services, delayed the release of its accounts amid a potential £3.5 billion takeover by Czech billionaire Daniel Kretinsky. The John Wood Group rejected a third takeover offer from Dubai-based Sidara, deeming it inadequate.
The UK retail sector faced setbacks as ONS data revealed a 2.3% drop in retail sales for April, attributed to bad weather keeping shoppers away from stores. This decline was steeper than the anticipated 0.4% drop. Sales fell across many sectors, particularly in clothing, sports equipment, and furniture stores.
In the financial sector, Edinburgh-based asset manager Abrdn announced that CEO Stephen Bird will step down, to be succeeded on an interim basis by CFO Jason Windsor. Coventry Building Society and Co-operative Bank also revealed a £780 million acquisition deal.
Additionally, GSK welcomed a U.S. jury ruling in its favor in the first Zantac-cancer trial, with another case dismissal. Major retail players emphasized resilience strategies amidst fluctuating consumer confidence and spending patterns.