London close: Stocks mixed ahead of UK inflation, Nvidia results

The FTSE 100 index edged down 0.13% to close at 8,099.02 points, while FTSE 250 rose 0.16% to 20,427.62 points.

In currency markets, sterling was last down 0.1% on the dollar to trade at $1.2665, while it gained 0.1% against the euro, changing hands at €1.1974.

“Today’s surge in the aptly nicknamed ‘Fear Index’ comes thanks to geopolitical tensions,” said IG chief market analyst Chris Beauchamp.

“Risk assets like stocks are not likely to enjoy a good day when the word ‘nuclear’ is being bandied around, and today was no exception.

“The Ukrainian use of US missiles on targets inside Russia caught European markets particularly hard, taking the already hard-hit CAC 40 to a new three and a half month low.”

Beauchamp noted that on home shores, the FTSE 100 gave back its morning gains, but had avoided any “major” losses.

“Natural gas prices were in vogue today thanks to the signs of further tensions between Russia and the West.

“Suggestions of sabotage in the disruption of a Baltic undersea cable reinforced the sense of a growing crisis, one that will hit European households particularly hard.”

Retailers sound warning over Budget measures, eurozone inflation rebounds

In economic news, the UK retail sector raised the alarm over potential fallout from the Autumn Budget, with over 80 industry leaders signing an open letter to Chancellor Rachel Reeves.

The signatories, representing both major chains and independent retailers, warned that proposed measures could add £7bn in costs by 2025, jeopardising jobs, investment, and affordability.

The British Retail Consortium noted that retail contributed over £100bn annually to GDP and employed three million people.

However, changes to National Insurance Contributions, a new packaging levy, and rising business rates could increase operational costs and force job cuts, particularly in entry-level roles.

Retailers urged the government to phase in changes and review business rates to ease financial pressures on the sector.

On the continent, eurozone inflation rebounded to 2% in October, climbing from a three-year low of 1.7% in September and aligning with the European Central Bank's target.

According to Eurostat, services and food prices drove the increase, while falling energy costs partially offset the rise.

Inflation rates varied widely across the bloc, with Slovenia reporting no change year-on-year, while Belgium and Estonia registered the highest rates at 4.5%.

Across the Atlantic, US housing starts dropped by 3.1% in October, falling short of expectations at 1.31 million, according to the Census Bureau.

The decline was largely driven by a 6.9% drop in single-family home construction, attributed to disruptions from hurricanes in the southern states.

Building permits also fell by 0.6% to 1.41 million, reflecting softer demand, while multi-unit housing saw a modest rise in starts but a drop in approvals.

Diploma tumbles after update, DCC and Imperial Brands in the green

On London’s equity markets, Diploma suffered a significant decline, with shares dropping 7.5%.

That came despite the company reporting a 14% increase in revenue to £1.36bn in its preliminary results, alongside a 20% rise in adjusted operating profit to £285m.

International Airlines Group fell 3.39% after its subsidiary, British Airways, encountered another IT failure.

Informa saw its shares decrease by 1.67%, even after the company reaffirmed its recently upgraded full-year guidance and noted strong forward bookings providing momentum into 2025.

Self storage operator Big Yellow Group dropped 2.43% after it reported a slight reduction in earnings per share for the first half of its financial year, attributed to higher operating costs.

Adjusted pre-tax profit and revenues both increased by 3% to £54.9m and £103m, respectively.

The company predicted a return to earnings per share growth in the second half.

On the upside, DCC gained 1.43%, after the sales, marketing, and support services group benefited from favourable commentary in the Telegraph's stock-picking column, which suggested a less bearish outlook on the company.

Additionally, Jefferies raised its price target on DCC's shares from 7,600p to 7,950p, following the company's plan to simplify operations and focus on the energy sector.

Tobacco giant Imperial Brands surged 3.17% after reporting a 4.5% increase in full-year adjusted operating profit.

The firm highlighted a more than 25% rise in revenues from new products like vapes and nicotine pouches.

BT Group advanced by 3.49% following the completion of Bharti Global's acquisition of a 24.5% stake in the company from France's Altice.

Vesuvius climbed 4.74% after it announced that trading profit for the 2024 financial year was expected to be slightly below 2023 levels on a constant currency basis.

The company said it aimed to maintain a return on sales margin of around 10.2%.

Engineering firm Bodycote saw its shares jump by 8% after it stated that full-year operating profit was set to align with market expectations, citing a “resilient performance in challenging end markets”.

Marshalls rose by 3.1% after the landscaping and building supplier unveiled a new strategy targeting an operating margin of 15%.

The company said it aimed to outperform the broader construction market by 2% to 4%.

Petershill Partners increased 6.22% after reporting a solid third-quarter performance, underpinned by strong partner fee-related earnings and substantial capital returns.

Despite a 1% quarterly decline, aggregate partner-firm assets under management rose 8% year-on-year to $328bn, while fee-paying partner-firm assets increased 18% annually to $233bn.

In broker note action, J Sainsbury shares edged up 1.37% after RBC Capital Markets initiated coverage with an 'outperform' rating, while Tesco remained flat as it received a 'sector perform' rating from the same firm.

United Utilities Group saw a slight increase of 0.41% following an upgrade to 'outperform' by BNP Paribas Exane.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,099.02 -0.13%
FTSE 250 (MCX) 20,427.62 0.16%
techMARK (TASX) 4,614.37 0.26%

FTSE 100 - Risers

BT Group (BT.A) 149.45p 3.25%
Imperial Brands (IMB) 2,475.00p 3.08%
British Land Company (BLND) 384.60p 3.00%
Land Securities Group (LAND) 596.50p 2.05%
Airtel Africa (AAF) 97.75p 1.88%
Vistry Group (VTY) 670.50p 1.59%
Persimmon (PSN) 1,279.50p 1.59%
Croda International (CRDA) 3,513.00p 1.47%
DCC (CDI) (DCC) 5,675.00p 1.43%
Convatec Group (CTEC) 243.00p 1.42%

FTSE 100 - Fallers

Diploma (DPLM) 4,206.00p -7.28%
Melrose Industries (MRO) 512.00p -2.77%
Prudential (PRU) 624.80p -2.38%
International Consolidated Airlines Group SA (CDI) (IAG) 239.20p -2.21%
Rolls-Royce Holdings (RR.) 528.00p -2.08%
Weir Group (WEIR) 2,124.00p -1.94%
Barclays (BARC) 255.85p -1.92%
Lloyds Banking Group (LLOY) 55.32p -1.64%
Hiscox Limited (DI) (HSX) 1,020.00p -1.54%
Informa (INF) 844.40p -1.26%

FTSE 250 - Risers

Vesuvius (VSVS) 400.50p 8.39%
Bodycote (BOY) 621.00p 8.00%
Petershill Partners (PHLL) 256.00p 6.22%
Indivior (INDV) 815.00p 5.98%
Hochschild Mining (HOC) 225.50p 4.16%
Crest Nicholson Holdings (CRST) 153.60p 4.00%
The Renewables Infrastructure Group Limited (TRIG) 92.90p 3.80%
Marshalls (MSLH) 336.00p 3.54%
HICL Infrastructure (HICL) 124.00p 3.51%
Watches of Switzerland Group (WOSG) 450.00p 3.16%

FTSE 250 - Fallers

Burberry Group (BRBY) 859.40p -5.06%
Big Yellow Group (BYG) 1,098.00p -4.85%
Close Brothers Group (CBG) 199.20p -3.49%
Helios Towers (HTWS) 100.80p -3.45%
Aston Martin Lagonda Global Holdings (AML) 106.40p -3.36%
Senior (SNR) 143.20p -2.98%
Inchcape (INCH) 751.50p -2.40%
Syncona Limited NPV (SYNC) 99.80p -2.35%
Wizz Air Holdings (WIZZ) 1,329.00p -2.21%
The European Smaller Companies Trust (ESCT) 170.20p -2.18%