London close: Stocks end turbulent week on positive note

dl city of london square mile financial district generic 13 — Sharecast / Olga Lioncat via Pexels

Anglo American

2,571.00p

17:15 03/12/24

0.33%

8.50p

London's stock markets ended the week on a high note, after stronger-than-expected US jobless claims data on Thursday alleviated concerns about the health of the American economy.

Household Goods & Home Construction

11,170.21

16:59 03/12/24

-0.79%

-88.87

Travel & Leisure

9,065.65

16:59 03/12/24

1.37%

122.88

The FTSE 100 index rose 0.28% to finish at 8,168.10 points, while the more domestically-focused FTSE 250 gained 0.57%, closing at 20,625.18 points.

In currency markets, sterling was last up 0.09% on the dollar, trading at $1.2760, while it gained 0.08% against the euro, changing hands at €1.1685.

“London's FTSE 100 is flat on Friday as industrial metal miners continued bolstered recovery and better-than-expected US jobs data dispelled concerns about a recession in the world's largest economy,” said TickMill market analyst Patrick Munnelly.

“For the second consecutive week, the FTSE is expected to report weekly falls, but has staged a strong rebound to get close to unchanged on the week.”

Consumer inflation edged up in Germany and China

It was a quiet day on the UK economic front, but on the continent, Germany's inflation rate edged up to 2.6% in July, according to official data released earlier.

The increase aligned with preliminary estimates and marks a slight acceleration from the 2.5% annual rise recorded in June.

On a monthly basis, consumer prices in Germany, adjusted to align with European Union standards, increased by 0.3% compared to June 2024.

“Decreases in energy prices in particular are dampening the inflation rate," said Ruth Brand, president of the Federal Statistical Office.

“In contrast, we continue to observe above-average price increases for services.”

Turning to China, the latest figures from the National Bureau of Statistics showed consumer price inflation picking up more than anticipated in July.

The CPI rose 0.5% year-on-year, up from 0.2% in June, surpassing market expectations of a 0.3% increase.

On a month-to-month basis, the CPI rebounded by 0.5% in July, reversing a 0.2% decline from the prior month and again exceeding the forecasted 0.3% growth.

“Conditions are in place to see inflation trend a little higher in the coming months but it should not impede further monetary easing,” said Lynn Song, chief Greater China economist at ING.

“With low inflation and weak credit activity, domestic factors continue to favour further monetary policy easing.

“We continue to look for at least one more rate cut this year with the potential for more if global rate cuts accelerate.”

Miners among the risers, Burberry Group in the red

On London’s equity markets, heavily-weighted miners were in the green, with Anglo American up 0.35%, Antofagasta ahead 1.79%, and Glencore rising by 1.43%.

The sector’s gains were driven by the stronger-than-expected consumer price inflation data from China for July.

Hargreaves Lansdown jumped 2.18% following the announcement of its acquisition by private equity firms CVC Group, Nordic Capital, and Abu Dhabi’s sovereign wealth fund in a £5.4bn deal.

Housebuilder Bellway rose 3.39% after signalling a potential return to growth in the 2025 financial year, contingent on stable market conditions.

The company reported a drop in housing completions for the year ended 31 July, but noted signs of market recovery following recent interest rate cuts.

Despite the decline, the firm's results were slightly ahead of previous guidance.

Beazley climbed 2.4%, continuing its upward trend after posting a record first-half profit of $728.9m on Thursday.

Similarly, Entain rallied 1.49% for a second consecutive day after the sports betting and gaming group raised its full-year guidance.

Lancashire Holdings added 5.94%, building on Thursday's report of a 26% increase in first-half profits, marking the non-life insurance group's best-ever half-year performance.

On the downside, Burberry Group fell 2.26%, making it one of the worst performers on the FTSE 100, alongside Spirax Group, which dropped 3.04%.

Spirax's decline followed disappointing first-half results that revealed lower-than-expected pre-tax profits amid challenging trading conditions.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,168.10 0.28%
FTSE 250 (MCX) 20,625.18 0.57%
techMARK (TASX) 4,780.08 0.24%

FTSE 100 - Risers

easyJet (EZJ) 436.70p 3.17%
Beazley (BEZ) 723.00p 2.48%
JD Sports Fashion (JD.) 125.45p 2.32%
Hikma Pharmaceuticals (HIK) 2,026.00p 2.31%
United Utilities Group (UU.) 990.00p 2.29%
Taylor Wimpey (TW.) 157.15p 2.24%
Standard Chartered (STAN) 715.80p 2.05%
Barclays (BARC) 218.25p 1.99%
Legal & General Group (LGEN) 224.10p 1.86%
CRH (CDI) (CRH) 6,504.00p 1.82%