London close: Stocks hold higher despite grim news

The FTSE 100 ended the session 28.10 points or 0.46% higher at 6,146.38, while the benchmark Stoxx Europe 600 index advanced 0.30% to 370.64.

Three-month copper futures finished 2.2% lower at 4,704.50 out on the LME, alongside a retreat of 2.23% for front month Brent crude futures to $43.51 per barrel on the ICE. Some market commentary linked the latter to worries over airliners’ fuel demands in the wake of the Paris attacks.

There were some signs at the G-20 summit in Turkey over the weekend of a rapprochement between the Russian and US presidents.

Also newsworthy, following their meetings on Saturday in Vienna, diplomats belonging to the 'International Support Group on Syria' appeared to agree on the urgent need for a ceasefire in the Middle Eastern country.

Gold futures were up by 0.93% to $1,091 per ounce by the close of trading in London and euro/dollar finished 0.3% lower 1.0705.

In an interview on Sunday with Les Echos, European Central Bank executive board member Yves Mersch said the euro area’s economic recovery was showing resilience and inflation should start rising at the beginning of next year.

He was considerably more upbeat than his Portuguese colleague Vitor Constancio, who on Monday described the euro area’s recovery since the financial crisis as “dismal”.

The average asking price of a home in the UK slipped 1.3% month-on-month in November, according to a survey from Rightmove. Nonetheless, home prices typically drop towards the end of the year as sellers lower prices ahead of the holiday season.

“It’s likely to be a short-lived respite as the combination of high confidence and low interest rates is a recipe for higher prices,” said Rightmove.

FTSE 100: Defensive names Astra and Imperial Tobacco gain

Housebuilder Taylor Wimpey said it expected to report a 2% rise in 2015 operating profit margin and a return on net operating assets of more than 25%. The company said it had seen an “excellent summer selling season strengthen further in the autumn period”, underpinned by rising wages and access to a wider range of mortgages.

Shares in Clovis Oncology tanked on Monday after the company said the US Food and Drug Administration had requested additional clinical data on the efficacy of its experimental lung cancer drug, rociletinib. The news lifted shares in London-listed pharmaceuticals giant AstraZeneca, whose new lung cancer pill, Tagrisso, was approved by US regulators last Friday.

Imperial Tobacco Group jumped after Goldman Sachs reiterated its buy rating for the stock, but revised its price target down from 3,800p to 3,700p.

Royal Dutch Shell and BG Group paced gains early on as traders priced-in an increased geopolitical premium, pushing oil futures higher after French jets attacked Isis targets in Syria. However, the bounce in crude future had petered out by the closing bell. BAE Systems and Rolls Royce were near the top of the leaderboard. Tourism-related shares on the other hand were taking it on the chin, with TUI and IAG faring worst.

FTSE 250: Diploma rewarded by investors

Technical instruments-to-wiring maker Diploma reported a 4% jump in full year pre-tax profits to £51.8m although the weaker Australian and Canadian dollars impacted on results. Shares were 15% higher by midday.

Premier Oil has has agreed to sell its Nowegian business, Premier Oil Norge AS to Det Norske for $120m (£79m), which will be used to pay down the company’s debt.

Tullow Oil shares surged after UBS upgraded the stock to ‘buy’ from ‘neutral’ and lifted the price target to 240p from 230p as it called a bottom to the net asset value downgrade cycle.

Engineering specialist Keller Group said it remains confident results for the year will be in line with current market expectations despite challenging conditions in many of its markets, thanks in part to strength in its main market of US construction.

Market Movers

FTSE 100 (UKX) 6,146.38 0.46%
FTSE 250 (MCX) 16,844.38 0.41%
techMARK (TASX) 3,082.20 0.83%

FTSE 100 - Risers

Taylor Wimpey (TW.) 180.90p 4.09%
AstraZeneca (AZN) 4,258.00p 4.01%
Imperial Tobacco Group (IMT) 3,589.00p 3.91%
Rolls-Royce Holdings (RR.) 528.00p 2.82%
BAE Systems (BA.) 464.70p 2.45%
British Land Company (BLND) 820.00p 1.99%
Randgold Resources Ltd. (RRS) 4,028.00p 1.95%
ITV (ITV) 264.90p 1.88%
Inmarsat (ISAT) 1,040.00p 1.66%
Hargreaves Lansdown (HL.) 1,443.00p 1.55%

FTSE 100 - Fallers

TUI AG Reg Shs (DI) (TUI) 1,088.00p -4.06%
Glencore (GLEN) 89.41p -3.83%
International Consolidated Airlines Group SA (CDI) (IAG) 576.00p -2.78%
Carnival (CCL) 3,382.00p -2.54%
Pearson (PSON) 765.00p -2.11%
InterContinental Hotels Group (IHG) 2,461.00p -1.91%
Whitbread (WTB) 4,399.00p -1.19%
Burberry Group (BRBY) 1,253.00p -1.18%
Rio Tinto (RIO) 2,221.00p -1.02%
Antofagasta (ANTO) 474.30p -0.90%

FTSE 250 - Risers

Diploma (DPLM) 717.50p 17.76%
Premier Oil (PMO) 73.90p 7.41%
BTG (BTG) 580.00p 7.21%
SIG (SHI) 125.90p 4.92%
Tullett Prebon (TLPR) 346.00p 4.85%
Sophos Group (SOPH) 278.00p 4.59%
Centamin (DI) (CEY) 61.60p 3.53%
Tullow Oil (TLW) 190.20p 3.20%
Essentra (ESNT) 792.00p 3.19%
Big Yellow Group (BYG) 747.50p 3.10%

FTSE 250 - Fallers

Nostrum Oil & Gas (NOG) 344.10p -6.37%
Enterprise Inns (ETI) 96.10p -5.38%
Thomas Cook Group (TCG) 102.30p -4.77%
Kaz Minerals (KAZ) 76.30p -4.63%
Ocado Group (OCDO) 341.80p -4.55%
Restaurant Group (RTN) 637.00p -3.40%
Allied Minds (ALM) 451.20p -2.95%
Card Factory (CARD) 356.60p -2.86%
Savills (SVS) 891.00p -2.63%
Ophir Energy (OPHR) 89.10p -2.62%