Weekly review

The FTSE 100 ended the week down 33.13 points, or 0.43%, closing at 7,689.61 on Friday.

Equity view

Shares in Clarkson jumped on Friday after the Shipping services provider lifted annual guidance on a strong trading performance during the final quarter of 2023 driven by its broking division. Underlying profit before tax was now expected to be at least £108m for the 12 months to December 31, the company said in a short trading update. Shares rose more than 5% against a 0.55% fall for the FTSE 250 index.

Ithaca Energy chief executive Alan Bruce has stepped down with immediate effect "to pursue new opportunities", the North Sea oil and gas producer said on Friday. Bruce led the company through its IPO and first year as a listed company. The board will progress with a formal search process to appoint a new CEO "as soon as possible".

Supreme, the AIM-listed supplier of branded and licensed consumer products, has purchased out of administration the trade and assets of sports nutrition company FoodIQ UK. Supreme, which supplies discount retailers and supermarkets with non-discretionary products like batteries, lightbulbs, protein bars and household goods, is taking over FoodIQ UK for £175,000.

Shares in Revolution Bars Group were plunging on Friday morning, after the company announced a decision to close several locations despite a strong festive trading period. The AIM-traded firm said that in the four weeks from 4 December to 31 December, it experienced a 9% boost in like-for-like sales, marking its best festive performance since 2019.

Endeavour Mining announced after the close of markets on Thursday that president and chief executive Sebastien de Montessus has been dismissed with immediate effect for "serious misconduct". The sacking follows an investigation by the board into "an irregular payment instruction issued by him in relation to an asset disposal undertaken by the company".

Sports fashion retailer JD Sports on Thursday delivered a profit warning after second-half trading missed expectations due to milder autumn weather and heavier discounting over the peak holiday shopping season. The company said the "elevated level of promotional activity" during the peak trading period means that full-year gross margins would be slightly lower than last year, leading it to lower it adjusted pre-tax profit guidance for the 12 months to 3 February to £915-935m, from £1.04bn at the half-year stage.

AIM-listed medtech group Inspiration Healthcare (IHC) has announced it is buying American respiratory device company Airon Corporation for $2.5m. The deal, which comprises an initial upfront cash payment of $1.5m plus an earn out of up to $1m dependent on the delivery of future revenues, gives IHC access to a "significant strategic market" in the US, the company said in a statement.

Topps Tiles reported a fall in first-quarter sales on Thursday, as cost-of-living pressures continued to dent consumer spending. In the 13 weeks to 30 December, like-for-like sales were down 7.1%, continuing the trend seen in the first eight weeks, with sales to trade customers more resilient than those to homeowners.

Shares in AIM-listed Landore Resources dropped on Thursday after the Canada-focused miner unveiled plans to "reset its goals", which involve a £600,000 equity fundraise and the resignation of its chief executive and a non-executive director. The placing, of 25m new ordinary shares, represents 17% of the company's enlarged issued share capital and the fundraising price of 2.4p was a 22.6p discount to Wednesday's closing price.

Liquid biopsy company Angle received "breakthrough results" from DNA molecular analysis of cancer patient blood samples on Thursday, sending its shares skywards as a result. Angle said its technology had successfully identified "key DNA mutations" in circulating tumour cells (CTCs) that had not been detected in ctDNA during a recent study involving 47 patients with breast, lung, prostate, and ovarian cancers.

Learning Technologies Group (LTG), the AIM-listed workplace digital learning solutions firm, has successfully completed the disposal of Lorien Engineering Solutions, finalising its exit from non-core assets. The disposal to engineering consultancy NIRAS Group, first announced in December, will see LTG receive $21.4m. The deal follows the closure of a UK apprenticeships business in January 2023.

Hungary-based budget airline Wizz Air reported a strong rise in December passenger numbers as demand continued to rebound from the Covid pandemic. The company on Wednesday said it carried 4,964,857 passengers, an 18.8% increase year on year. For the year as a whole numbers rose by 26.1% to 66.4 million.

C4X Discovery, the AIM-listed drug discovery company, has received a "milestone payment" of $11m from biopharma giant AstraZeneca as part of the progress of its NRF2 Activator programme, causing shares to jump by nearly a half on Wednesday. Back in November 2022, C4XD signed an exclusive global licensing agreement with AstraZeneca for the development and commercialisation of NRF2 Activator programme, an oral therapy for the treatment of inflammatory and respiratory diseases with a lead focus on chronic obstructive pulmonary disease (COPD).

Ladbrokes owner Entain rallied on Wednesday as it announced the appointment of Eminence Capital founder Ricky Sandler as a non-executive director with immediate effect. Sandler is the founder, chief executive and chief investment officer of Eminence Capital, a global investment management organisation.

Mkango Resources, alongside CoTec Holdings, announced a partnership with Maginito on Wednesday to establish HyProMag USA as a 50-50 joint venture entity. The AIM-traded firm said the collaboration would introduce HyProMag's hydrogen processing of magnet scrap (HPMS) recycling technology into the US.

Telecoms operator Airtel Africa said chief executive Olusegun Ogunsanya would be retiring and replaced by Sunil Taldar in the middle of the year. Taldar will be appointed to the board as an executive director and assume the role of CEO on July 1, at which time Segun will retire from the board and the company, Airtel said in a statement on Tuesday.

Diversified Energy has sold producing assets in Appalachia to a special purpose vehicle, DP Lion Equity Holdco, it announced on Tuesday, while retaining a 20% minority interest in the vehicle and continuing to operate them. The FTSE 250 company said the transaction yielded $200m in proceeds for the company.

Infrastructure specialist Balfour Beatty appointed corporate brokers to oversee the initial phase of its 2024 share buyback programme on Tuesday. The company said the programme aimed to repurchase up to £50m of shares, and was scheduled to be completed by 30 June.

Biotechnology group Novacyt has appointed Steve Gibson to the role of chief financial officer with immediate effect.Gibson joined Novacyt in 2017 and has served as group finance director since 2020. Prior to joining Novacyt, Gibson spent over ten years in various finance departments at Hewlett-Packard.

MaxCyte confirmed the appointment of Maher Masoud as its new president and chief executive officer on Tuesday, effective from 1 January. The AIM-traded firm said that alongside his role as CEO, Masoud had joined its board of directors.

Economic news

House prices in the UK rose for the third straight month in December, with the average home costing £3,066 more, according to the Halifax House Price Index published on Friday. The average house price stood at £287,105 last month, up 1.1% from November and its highest level since March 2023. Compared with the year before, prices are now £4.800 higher, equating to annual growth of 1.7%.

UK new car registrations posted their strongest jump since the Covid pandemic as supply chains eased up and fleet demand drove sales, industry figures released on Friday revealed. Sales rose 17.9% to 1.9 million vehicles in 2023 - the highest level since the 2.3 million registrations in 2019, the Society of Motor Manufacturers and Traders (SMMT) said. Year-on-year December new car sales were up 9.8%.

The downturn in the UK construction sector eased a little in December, according to a survey released on Friday. The S&P Global construction purchasing managers’ index printed at 46.8, remaining below the 50.0 mark that separates contraction from expansion for the fourth month in a row amid a continued slump in the house building sector.

British shoppers headed out more reluctantly during the usually busy holiday period, according to fresh data released on Friday morning, with retail footfall seeing a notable decline. According to BRC-Sensormatic IQ, total UK footfall saw a 5% year-on-year decrease from 26 November to 30 December - a marked decline from November's -0.7% year-on-year change.

UK consumer credit borrowing rose to its highest levels in nearly seven years in November as consumers took on more credit card debt ahead of the festive season in the midst of a cost-of-living crisis. Net consumer credit borrowing rose to £2.0bn in November, up from £1.4bn in October and its highest level since March 2017, according to data out on Thursday from the Bank of England.

UK mortgage approvals rose more than expected in November, according to data released on Thursday by the Bank of England, rising to their highest in five months as interest-rate projections began to fall. Net approvals for house purchases, a key indicator of future borrowing, totalled 50,100 in November, up from 47,900 in October and the highest level since June.

Activity in the UK service sector rose at the fastest pace in six months in December, according to a survey released on Thursday. The S&P Global/CIPS services PMI business activity index increased to 53.4 from 50.9 in December, coming in above the flash reading of 52.7. A reading above 50.0 signals expansion, while a reading below indicates contraction.

German discounters Aldi and Lidl performed best in December, according to data from retail expert Kantar, which said a record £13.7bn was spent at British supermarkets over the four weeks ended 24 December. Kantar recorded Lidl's sales growth at 13.8% and Aldi's at 9.9%, increasing their combined market share to 17%, while Tesco sales rose 7.5% and its market share edged up to 27.6%, and Sainsbury's sales were up 9.3% year-on-year, pushing up its market share to 15.8% - the highest seen since December 2020.

The downturn in UK manufacturing output worsened in December, with the S&P Global purchasing managers' index (PMI) falling further into negative territory. The final figure for December's PMI was revised to 46.2, down from the 'flash' estimate of 46.4, and comes after a seven-month high of 47.2 in November. Economists had expected there to be no change on the initial estimate.

International events

The US economy added 216,000 jobs in December, according to the Bureau of Labor Statistics, up from November's downwardly revised print of 173,000 and well ahead of market forecasts for a reading of 170,000. Government employment was up 52,000, while leisure and hospitality employment was 40,000 higher, health care was 38,000 stronger, and construction roles rose 17,000. On the other hand, the transportation and warehousing sector lost 23,000.

Inflation in the eurozone accelerated in December, according to Eurostat on Friday, but by less than expected, reinforcing expectations that the European Central Bank will soon move to cut interest rates. The annual change in the harmonised index of consumer prices rose to 2.9% last month, a significant increase from 2.4% in November but below the consensus estimate for a stronger increase to 3.0%.

German retail sales dropped sharply in November as non-food sales tanked, according to the federal statistics office, Destatis. Retail sales were down 2.5% during the month, wiping out the 1.1% gain registered in October, and surprising analysts who had pencilled in a decline of just 0.1%.

Flash estimates for Germany's consumer price index (CPI) for December showed a sharp uptick in annual inflation, though it was largely as expected after a plunge in energy prices the year before. The year-on-year change in the CPI rose to 3.7% last month, from 3.2% in November, slightly under the 3.8% consensus estimate.

Private sector employment in the US rose more than expected in December, according to figures released on Thursday by ADP. Employment increased by 164,000 from November, versus expectations for a 115,000 jump. November’s gain was revised down to 101,000 from 103,000.

Americans lined up for unemployment benefits at a decelerated clip in the week ended 30 December, according to the Labor Department, hitting the lowest claim count since October. Jobless claims in the US fell by 18,000 to 202,000 in the final week of the year, firmly below market expectations for a reading of 216,000. The previous week's level was revised up by 2,000 to 220,000.

Activity in China’s services sector expanded more than expected in December, according to a survey released on Thursday. The Caixin services purchasing managers’ index rose to 52.9 from 51.5 in November, coming in above consensus expectations of 51.6 and marking the highest level since July. A reading above 50.0 indicates expansion, while a reading below signals contraction.

The Federal Open Market Committee (FOMC) discussed at its last meeting that interest-rate cuts were likely to happen in 2024, but didn't give any details on when the central bank might start to loosen monetary policy. Minutes of the FOMC's 12-13 December meeting showed that "almost all participants indicated that, reflecting the improvements in their inflation outlooks, their baseline projections implied that a lower target range for the federal funds rate would be appropriate by the end of 2024".

The manufacturing downturn in the US eased a little more than expected in December, according to the Institute for Supply Management's purchasing managers' index (PMI) released on Wednesday. The manufacturing PMI increased by 0.7 points to 47.4, up from 46.7 in November and the highest reading since September.

US job openings decreased by 62,000 in November, hitting their lowest level in almost three years, according to the Bureau of Labor Statistics. November's job openings and labour turnover statistics survey came in at 8.79m, their lowest level since March 2021 and below consensus estimates for a reading of 8.85m.

The US economy is probably heading for a soft landing but geopolitical tensions meant that a cautious approach was still needed by policymakers, a central bank official said on Wednesday. Richmond Federal Reserve President Thomas Barkin said interest rate hikes remain “on the table” even though officials at their most recent meeting in December indicated that this round of policy tightening was probably over as inflation continued to fall.

Reporting by Sharecast.com staff and contributors.