London close: Stocks finish mixed after Trump election landslide

London stocks ended Wednesday in mixed territory as markets processed Donald Trump’s surprise landslide victory in the US presidential election.

The FTSE 100 index slipped 0.07% to close at 8,166.68 points, while the FTSE 250 gained 0.38% to reach 20,446.70 points.

In currency markets sterling was last down 1.21% on the dollar to trade at $1.2884, while it rose 0.62% against the euro, changing hands at €1.2007.

“Following president Trump's historic second term in the White House, the Republican win of the Senate and likely win of the House of Representatives, US stocks, cryptocurrencies, the greenback and yields rally,” said IG senior analyst Axel Rudolph.

“Bitcoin surged by 8% and hit a new record high as US stock indices rose by around 2% to 3%, the US dollar index by 2% and the US 10-Year Treasury yield by 21 basis points to 4.48%.

“The Dow Jones Industrial Average and S&P 500 hit new record highs while the Nasdaq 100 practically retested its July all-time peak.”

Rudolph noted that the small-cap Russell 2000 greatly benefitted from Trump's pro-business, employment and investment policies and rallied by 6% on the day.

“The index is now up nearly 10% since the beginning of the month and is trading at levels last seen in November 2021.

“The oil price regained much of its 2% intraday loss but gold and silver prices fell by around 3% 4% as safe haven trades were unwound.”

UK construction sector grows more slowly, industrial producer prices ease in eurozone

In economic news, the UK construction sector saw growth in October for the eighth consecutive month, albeit at a slower pace as pre-Budget uncertainty led to delayed spending.

The purchasing managers' index (PMI) for construction, reported by CIPS and S&P Global, dropped to 54.3 from September’s 57.2, a two-year high.

That reading, still above the 50-point threshold for expansion, undershot market forecasts of 56.0.

Despite steady new work, political and economic uncertainties, including cost-of-living concerns, tempered growth.

Civil engineering led with a PMI of 56.2, buoyed by energy projects, particularly in renewables.

Commercial construction rose modestly to 52.8, while residential building contracted to 49.4, marking its first decline since June due to higher borrowing costs and pre-Budget caution.

“Total new work expanded at a solid pace in October, adding to signs of a robust improvement in order book pipelines across the construction sector in the second half of 2024,” said Tim Moore, economics director at S&P Global Market Intelligence.

“As a result, construction companies added to their payroll numbers at an accelerated pace.

“However, business optimism remained relatively subdued in comparison to the highs in the first half of the year, with output growth expectations now the lowest since December 2023.”

In the eurozone, industrial producer prices eased in September, aligning with expectations, as energy prices dropped sharply.

According to Eurostat, prices fell 0.6% across the eurozone and EU, reversing August's gains.

Energy costs fell 1.9%, while prices for capital and consumer goods remained stable or showed slight increases.

Notably, Spain saw a significant drop of 2.4% after August’s 1.4% rise, with Germany, France, and Italy also posting declines.

Annually, producer prices in the eurozone dropped 3.4%, reflecting weaker inflationary pressures across the bloc.

The eurozone economy stagnated in October, with the composite PMI remaining flat at 50.0, only a slight rise from September’s 49.6 but still below the average of 52.5.

Germany and France, the region’s largest economies, reported contraction, offsetting growth in Spain and Italy.

While the services sector expanded for the ninth month, reaching a PMI of 51.6, manufacturing lagged at 45.8, indicating persistent challenges in production.

German factory orders rebounded unexpectedly in September, jumping 4.2% after a steep 5.4% drop in August, driven by a surge in orders for transportation equipment, including aircraft and ships.

The rise, propelled by several large orders, far exceeded expectations for a 1.5% increase and offered a positive sign for the industrial sector.

Across the Atlantic, mortgage applications in the US fell 10.8% in the final week of October as high interest rates continued to weigh on borrowing.

That marked the sixth straight week of declines, reflecting subdued demand as potential homebuyers face sustained affordability challenges.

US-exposed stocks surge, housebuilders in the red

On London’s equity markets, US-exposed stocks and select investment trusts were among the gainers on the day.

Building materials giant CRH rose 5.57%, alongside equipment rental group Ashtead, which gained 5.56%, as both companies benefitted from their substantial US market exposure.

Investment trusts also rallied on positive global equity sentiment, with the JPMorgan American Investment Trust up 4.76% and Baillie Gifford US Growth Trust advancing 5.67%, while HarbourVest Global Private Equity and Edinburgh Worldwide Investment Trust followed suit, up 4.42% and 3.08% respectively.

Marks & Spencer saw a 3.83% lift as it reported first-half profits exceeding forecasts, with a 17.2% rise in profit before tax and adjustments, driven by strong food and clothing sales.

OSB Group and Prudential both posted gains of 3.99% and 2.5%, respectively, following positive financial results, while Lancashire Holdings inched up 0.95% on news of a 9% rise in gross premiums and a special dividend announcement.

Travel stocks also saw notable increases, with Carnival surging 7.89% and Wizz Air Holdings up 2.44% as falling oil prices eased cost pressures.

Ferrexpo, a Ukraine-based iron ore exporter, soared by 27.33%, marking one of the day’s strongest gains.

Neil Wilson, chief market analyst at Finalto, described the stock as a “Ukraine peace play”.

Trump had said while campaigning that he would be able to end Russia's war in Ukraine in 24 hours.

Elsewhere, 3i Group rose 4.58% following an analyst upgrade to ‘buy’ from Deutsche Bank.

On the downside, housebuilders saw significant declines, led by Persimmon, which dropped 7.84% after reporting a dip in housing completions and cautioning about rising costs.

Peers Taylor Wimpey, Barratt Redrow, and Berkeley Group Holdings also closed lower.

Burberry Group slipped 0.44% despite an analyst upgrade to ‘outperform’ from ‘sector perform’ at RBC Capital Markets, while Smith & Nephew fell 3.97% following a downgrade to ‘hold’ at Berenberg.

Precious metals miners Hochschild, Endeavour, and Centamin were in the red, weighed down by a drop in gold prices due to a stronger dollar.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,166.68 -0.07%
FTSE 250 (MCX) 20,446.70 0.38%
techMARK (TASX) 4,584.80 0.46%

FTSE 100 - Risers

CRH (CDI) (CRH) 7,808.00p 5.57%
Ashtead Group (AHT) 6,300.00p 5.56%
Barclays (BARC) 258.15p 5.41%
InterContinental Hotels Group (IHG) 9,002.00p 5.24%
BAE Systems (BA.) 1,343.00p 4.92%
3i Group (III) 3,493.00p 4.58%
Flutter Entertainment (DI) (FLTR) 18,225.00p 4.23%
Marks & Spencer Group (MKS) 398.20p 3.83%
Smith (DS) (SMDS) 576.50p 3.41%
Pershing Square Holdings Ltd NPV (PSH) 3,562.00p 3.07%

FTSE 100 - Fallers

Persimmon (PSN) 1,343.50p -8.67%
Intertek Group (ITRK) 4,518.00p -4.72%
Taylor Wimpey (TW.) 139.65p -4.09%
Smith & Nephew (SN.) 927.80p -3.97%
Fresnillo (FRES) 699.00p -3.92%
Antofagasta (ANTO) 1,726.50p -3.68%
British Land Company (BLND) 382.80p -3.48%
BT Group (BT.A) 142.55p -3.29%
Barratt Redrow (BTRW) 435.00p -3.07%
Berkeley Group Holdings (The) (BKG) 4,262.00p -3.05%

FTSE 250 - Risers

Carnival (CCL) 1,681.50p 7.89%
TBC Bank Group (TBCG) 3,050.00p 7.21%
Lancashire Holdings Limited (LRE) 670.00p 6.52%
Baillie Gifford US Growth Trust (USA) 233.00p 5.67%
Bank of Georgia Group (BGEO) 4,615.00p 5.61%
4Imprint Group (FOUR) 5,340.00p 4.91%
JPMorgan American Inv Trust (JAM) 1,056.00p 4.76%
HarbourVest Global Private Equity Limited A Shs (HVPE) 2,365.00p 4.42%
Spectris (SXS) 2,556.00p 4.07%
Polar Capital Technology Trust (PCT) 321.50p 4.05%

FTSE 250 - Fallers

Ashmore Group (ASHM) 199.50p -7.55%
Just Group (JUST) 130.20p -3.98%
Volution Group (FAN) 562.00p -3.93%
Urban Logistics Reit (SHED) 111.00p -3.81%
Tritax Big Box Reit (BBOX) 134.00p -3.25%
Derwent London (DLN) 2,066.00p -3.10%
PZ Cussons (PZC) 78.90p -3.07%
Sirius Real Estate Ltd. (SRE) 85.50p -2.90%
BH Macro Ltd. GBP Shares (BHMG) 371.50p -2.88%
Fidelity China Special Situations (FCSS) 213.00p -2.74%