London close: Stocks finish the year lower on shortened trading day

UK equities finished lower for the year on thin trading volumes amid a lack of fresh drivers for markets on New Year’s Eve.

The market closed early at 1230 GMT as traders put on their party hats to bring in 2016. It was a quiet session with no macro data and sparse company news.

“After a year that began so promisingly the markets are wrapping up 2015 in the limpest way possible, a collective sigh instead of any attempt at New Year’s Eve fireworks,” said Connor Campbell, financial analyst at Spreadex.

Campbell added that the “US looks unlikely to bring any New Year cheer either, with the Dow Jones currently looking at a meagre 10 point rise when the bell rings on Wall Street, something that still leaves it down around 1% across the past 12 months”.

The US will have a full day of trading while Germany, France and Japan are closed for the day.

Still to come, the US will see the release of initial jobless claims at 1330 GMT which is expected to show 273,000 claims for the week to 26 December. The Chicago purchasing managers’ index at 1445 GMT is forecast to reveal a reading of 50.3 in December from a previous 48.7. A reading above 50 signals an expansion while a level below that indicates a contraction.

Meanwhile, oil prices remained in focus after sending global equities into the red on Wednesday. Concerns about a supply glut intensified following data which showed an unexpected increase in crude inventories.

The US Department of Energy’s statistical arm said in the week ending 25 December, stockpiles of commercial US crude oil rose by 2.6m barrels from the previous week to 487.4m. Analysts had been expecting a drop of 1m barrels.

“A continued slide in the oil price and a US Dollar that’s not going down without a fight are dominating sentiment as people begin to attempt their 2016 forecasts, seeing headwinds for long term earnings,” said Augustin Eden at Accendo Markets.

At 1209 GMT Brent rose 0.13% to $36.51 per barrel and West Texas Intermediate fell 0.08% to $36.49 per barrel.

On the company front, Sports Direct rebounded from a fall earlier in the session after saying that it will pay its staff more than the national minimum wage, which will cost the company about £10m for the year.

Ocado continued to fall on news that Amazon was expanding its UK grocery delivery service.

Vodafone rallied on reports that it was in talks about a merger with US-listed cable company Liberty Global.

Market Movers

FTSE 100 (UKX) 6,245.63 -0.45%
FTSE 250 (MCX) 17,427.78 -0.52%
techMARK (TASX) 3,254.01 -0.27%

FTSE 100 - Risers

Vodafone Group (VOD) 220.85p 1.54%
Sports Direct International (SPD) 573.50p 0.70%
Rio Tinto (RIO) 1,972.50p 0.69%
Worldpay Group (WI) (WPG) 309.80p 0.68%
Babcock International Group (BAB) 1,021.00p 0.59%
Royal Bank of Scotland Group (RBS) 304.40p 0.53%
Aberdeen Asset Management (ADN) 290.40p 0.48%
BT Group (BT.A) 472.70p 0.47%
Taylor Wimpey (TW.) 204.40p 0.39%
ITV (ITV) 277.50p 0.36%

FTSE 100 - Fallers

Experian (EXPN) 1,198.00p -1.96%
National Grid (NG.) 932.40p -1.96%
Sainsbury (J) (SBRY) 256.80p -1.87%
TUI AG Reg Shs (DI) (TUI) 1,206.00p -1.87%
Centrica (CNA) 216.80p -1.86%
Direct Line Insurance Group (DLG) 405.70p -1.72%
Randgold Resources Ltd. (RRS) 4,131.00p -1.69%
Old Mutual (OML) 178.50p -1.44%
Coca-Cola HBC AG (CDI) (CCH) 1,452.00p -1.43%
Severn Trent (SVT) 2,172.00p -1.41%

FTSE 250 - Risers

Evraz (EVR) 72.65p 2.90%
Keller Group (KLR) 841.00p 1.88%
Mitchells & Butlers (MAB) 344.10p 1.80%
Allied Minds (ALM) 395.50p 1.59%
Ibstock (IBST) 225.20p 1.44%
Home Retail Group (HOME) 99.95p 1.37%
Tullow Oil (TLW) 165.60p 1.28%
Intermediate Capital Group (ICP) 625.50p 1.21%
Polymetal International (POLY) 582.00p 1.13%
Weir Group (WEIR) 1,001.00p 1.06%

FTSE 250 - Fallers

Genus (GNS) 1,568.00p -2.97%
Vesuvius (VSVS) 330.70p -2.68%
Renishaw (RSW) 1,870.00p -2.55%
OneSavings Bank (OSB) 350.10p -2.48%
Ocado Group (OCDO) 307.30p -2.44%
Poundland Group (PLND) 208.00p -2.44%
Grainger (GRI) 232.50p -2.43%
Morgan Advanced Materials (MGAM) 248.70p -2.39%
Hansteen Holdings (HSTN) 115.10p -2.37%
Synthomer (SYNT) 318.30p -2.24%