London close: Stocks mixed amid global political concerns

The FTSE 100 index slipped 0.28% to close at 8,335.81 points, while the more domestically-focussed FTSE 250 gained 0.54%, finishing at 21,005.15 points.

In currency markets, sterling was last up 0.28% on the dollar to trade at $1.2708, while it edged 0.14% higher against the euro, changing hands at €1.2076.

“The FTSE 100 has enjoyed a decent couple of weeks, but it looks like it has run out of momentum for the moment,” said IG chief market analyst Chris Beauchamp.

“A dearth of corporate news isn’t helping matters either.

“Meanwhile, investors can be forgiven for focusing on France, where the prime minister faces the likely collapse of his government.”

Beauchamp noted that while the CAC 40 had managed to struggle higher of late, the contrast with a soaring DAX was stark.

“The latter index has gained over 20% this year, but it is perhaps more a story of French weakness than overall German strength.

“Certainly, the German economy continues to struggle, but it is political turmoil and the travails of the luxury sector that has hobbled its Gallic counterpart’s stock market.”

UK business confidence drops, eurozone activity enters contraction territory

In economic news, business confidence among UK service providers dropped to its lowest level in nearly two years.

The S&P Global UK services purchasing managers’ index (PMI) fell to 50.8 in November, its weakest reading in 13 months and down from October's 52.0.

While still above the 50.0 threshold that separates growth from contraction, the decline was driven by heightened uncertainty over costs and tax measures introduced in the October Budget.

“Weaker sales pipelines, cutbacks to new projects and more caution among clients were all cited as having an adverse impact on output,” said Tim Moore, economics director at S&P Global Market Intelligence.

“There was a considerable reduction in business optimism across the service economy.

“Worries about the impact of policies announced in the Budget, in particular those pushing up employment costs, were widely reported as leading to a gloomier assessment of business investment prospects and the broader UK economic outlook.”

On the continent, economic activity in the eurozone slipped into contraction, according to the Hamburg Commercial Bank composite PMI.

The index dropped to 48.3 from October’s neutral 50.0, marking a 10-month low.

The services PMI fell to 49.5 from 51.6, signaling contraction for the first time since January, while manufacturing output remained weak at 45.1.

Industrial producer prices in the region meanwhile rose 0.4% in October, largely due to higher energy costs, but remained 3.2% lower year-on-year.

Across the Atlantic, private-sector employment growth in the US slowed in November.

ADP reported a gain of 146,000 jobs, below expectations of 163,000.

Small businesses shed jobs, while medium and large businesses recorded modest gains.

Separately, the Institute for Supply Management’s services PMI dropped to 52.1 from October’s 56.0, reflecting weaker business activity, new orders, and employment.

S&P Global's services PMI was revised down to 56.1 but still indicated solid expansion.

Elsewhere, China also showed signs of deceleration as the Caixin services PMI eased to 51.5 in November from 52.0 in October, below market expectations.

New business growth also slowed, adding to concerns about the country’s uneven post-pandemic recovery.

Legal & General jumps, Zigup slides on weaker first half

On London’s equity markets, Legal & General Group surged 5.61% after reaffirming its profit guidance for the year and suggesting additional shareholder returns.

The insurer announced plans to return unused capital from the year, exceeding earlier capital return commitments made in June.

John Wood Group was among the leading risers with a 10.69% gain, despite no specific news to explain the sharp increase in its share price.

Shares in International Airlines Group (IAG) climbed 3.14% after JPMorgan Cazenove added the stock to its ‘Analyst Focus List’ and placed it on ‘positive catalyst watch’.

JPM highlighted the British Airways owner as its top pick in the airline sector, citing strong free cash flow, shareholder returns, and re-rating potential.

Victrex rose 6.41% following an upgrade to ‘buy’ by Jefferies, while Spirax Group gained 1.83% after Barclays upgraded it to ‘overweight.’

Bunzl, which initially struggled after an HSBC downgrade to ‘hold,’ closed 0.13% higher.

On the downside, Rio Tinto slipped 0.26%.

The mining giant announced a forecast for higher copper production in 2025 and revealed plans to sell a 30% stake in its Winu copper-gold project in Australia to Sumitomo Metal Mining for $399m.

Additionally, the company faced pressure from hedge fund Palliser to eliminate its dual listing structure.

Elsewhere, Zigup plunged 12.92% after reporting a drop in interim profit and revenue.

Me Group International, despite highlighting continued growth and forecasting record profitability for 2024, fell 1.11%.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,335.81 -0.28%
FTSE 250 (MCX) 21,005.15 0.54%
techMARK (TASX) 4,715.91 -0.17%

FTSE 100 - Risers

Legal & General Group (LGEN) 235.50p 5.65%
Vistry Group (VTY) 658.50p 4.86%
International Consolidated Airlines Group SA (CDI) (IAG) 275.10p 4.05%
Beazley (BEZ) 806.00p 2.28%
Persimmon (PSN) 1,274.50p 2.25%
Whitbread (WTB) 2,870.00p 1.95%
Spirax Group (SPX) 7,515.00p 1.83%
Intermediate Capital Group (ICG) 2,198.00p 1.76%
Barratt Redrow (BTRW) 433.30p 1.71%
Land Securities Group (LAND) 601.50p 1.60%

FTSE 100 - Fallers

AstraZeneca (AZN) 10,480.00p -2.87%
Anglo American (AAL) 2,507.50p -2.47%
National Grid (NG.) 975.00p -1.52%
Flutter Entertainment (DI) (FLTR) 21,810.00p -1.45%
Smiths Group (SMIN) 1,762.00p -1.40%
Smith (DS) (SMDS) 577.00p -1.37%
Frasers Group (FRAS) 741.00p -1.33%
SSE (SSE) 1,725.00p -1.32%
Smith & Nephew (SN.) 984.40p -1.09%
Shell (SHEL) 2,530.50p -1.00%

FTSE 250 - Risers

Wood Group (John) (WG.) 64.70p 10.69%
Victrex plc (VCT) 1,104.00p 9.96%
SDCL Energy Efficiency Income Trust (SEIT) 55.50p 6.94%
Close Brothers Group (CBG) 222.20p 6.72%
Kainos Group (KNOS) 805.00p 5.50%
Alpha Group International (ALPH) 2,310.00p 5.00%
Foresight Group Holdings Limited NPV (FSG) 411.00p 3.79%
AJ Bell (AJB) 496.50p 3.44%
Senior (SNR) 153.40p 3.37%
Indivior (INDV) 898.50p 3.28%

FTSE 250 - Fallers

Zigup (ZIG) 333.50p -12.92%
Harworth Group (HWG) 170.00p -3.68%
St James's Place (STJ) 868.50p -3.18%
Wetherspoon (J.D.) (JDW) 625.00p -2.34%
Energean (ENOG) 1,021.00p -1.73%
Auction Technology Group (ATG) 554.00p -1.60%
Mitchells & Butlers (MAB) 250.00p -1.38%
Burberry Group (BRBY) 901.20p -1.25%
Fidelity China Special Situations (FCSS) 211.00p -1.17%
BlackRock World Mining Trust (BRWM) 507.00p -1.17%