The FTSE Finish Line: May 22 - 2025
Patrick Munnelly, Partner: Market Strategy, Tickmill Group.
London stocks fell on Thursday amid widespread declines driven by concerns over a deteriorating fiscal outlook in the U.S. and a larger-than-expected budget deficit in the UK, undermining investor confidence. Attention is centred on U.S. President Donald Trump's sweeping tax and spending legislation, which was passed by the Republican-controlled House of Representatives on Thursday after extended debates over spending cuts and tax policies. Market analysts fear the proposed legislation could add trillions of dollars to the U.S. national debt if approved by Congress. Meanwhile, data released on Thursday revealed that the UK government started the 2025/26 financial year in April with borrowing levels once again exceeding forecasts, indicating continued strain on public finances. The UK bond market has grown increasingly volatile recently, reflecting investor unease over Britain's combination of sluggish economic growth, rising debt interest costs, and persistent inflation.
Single Stock Stories & Broker Updates:
BT Group shares fell 5.3% to 160.35p. The company's FY core earnings slightly missed analyst expectations. The CEO indicated openness to international partnerships. BT is on track to achieve its FY27 free cash flow targets. Brokerages rate the stock as "buy" with a median price target of 185p. The stock has increased 17.5% year-to-date until yesterday's close.
Johnson Matthey's shares rise 30% to 1,792p after announcing the sale of its catalyst technologies business to Honeywell for £1.8 billion. The company expects net proceeds of £1.6 billion, with 88% returned to shareholders. Stock is set for its largest intraday percentage gain, with shares up 35% YTD.
Shares of British Land fell 7% to 382.6p, making it a top loser on the FTSE mid-cap index. The company expects FY26 EPS to be flat, around 3% below consensus per JPMorgan. It reported 2025 EPRA net tangible assets at 567p, slightly below the consensus of 570p. The company maintains a 3-5% annual estimated rental value growth outlook for its portfolio. The stock has risen approximately 8% this year.
Technical & Trade View
FTSE Bias: Bullish Above Bearish below 8700
Primary support 8500
Below 8500 opens 8250
Primary objective 8900
Daily VWAP Bullish
Weekly VWAP Bullish
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!