17:22 09/02/24
|
London markets turned lower on Friday afternoon, ending a volatile week in the negative.
of FTSE100 The index fell 0.3% to close at 7,572.58 points. FTSE250 It ended the day at 19,062.32 points, down 0.21%.
On the foreign exchange market, the pound rose 0.07% against the dollar to trade at $1.2626, while against the euro it fell 0.01% to trade at 1.1706 euros.
“While the Nasdaq 100 and S&P 500 hit record highs, with the latter breaking above the 5,000 mark, European stock indexes had difficulty sustaining their gains and ended the week slightly negative,” he said. . I.G. Axel Rudolph, Senior Market Analyst.
“The FTSE 100 in particular fell for the third day in a row ahead of next week’s UK unemployment, inflation, fourth quarter GDP and retail sales data.”
Rudolph said U.S. natural gas prices fell 12% for the week on near-record production, while oil prices rose more than 5%.
“The rejection of a proposed ceasefire between the Israel Defense Forces and Hamas has investors worried about possible supply disruptions, leading to price increases that are likely to continue given regional tensions.
“Last week’s inflows into the dollar gave way to some outflows this week as several Fed directors reiterated the Fed’s cautious stance on rate cuts.”
German inflation eases, BoE members warn against rate cuts
In economic news, the latest official data showed Germany’s inflation rate fell to 2.9% in January, in line with earlier expectations.
This figure was down from 3.7% in December, mainly due to a significant drop in energy costs.
Energy inflation plunged to -2.8% from 4.1% in December, despite the removal of energy price caps and the increase in carbon taxes.
The rate of increase in food prices continued to slow, reaching 3.8% compared to 4.6% in December, but is still significantly higher than the overall inflation rate.
Eurozone Chief Economist Klaus Bystesen said: “Overall, energy prices for the main components remained relatively strong at the start of the year. This applies to “.” pantheon macroeconomics.
He highlighted the downside risks to energy prices, despite the carbon tax being raised from 30 euros to 45 euros per tonne.
Domestically, all eyes were on the Bank of England after Jonathan Haskell, an external member of the Monetary Policy Committee, stressed the need for more evidence of curbing inflation and warned against cutting interest rates.
Mr. Haskell voted in favor of raising rates last week, stressing the importance of persistently addressing inflation concerns.
Despite recent declines in inflation, falling from a peak of 11.1% in October 2022 to 4% in December, Haskell said more evidence is needed before changing his position. emphasized.
The current interest rate is 5.25%, the highest level in 15 years, and most analysts expect a rate cut before the end of the year.
However, at a recent MPC meeting, Haskell and fellow member Katherine Mann voted in favor of raising interest rates to 5.5%, citing continued concerns about inflationary pressures.
The majority chose to keep interest rates on hold, with Haskell calling his decision “a fine balance.”
The Bank of England expects headline inflation to reach its long-term target of 2% in the spring, before rising again by the end of the year.
ConvaTec jumps on peer results, legal and general slides
On the London stock market, Convatec Group Denmark’s Coloplast’s stock rose 1.88%, following strong interim results.
major supermarket tesco It returned 0.04% after completing the sale of its retail banking business. barclays For £600 million.
Tesco also announced a strategic partnership with Barclays to sell financial services under the Tesco brand.
The move is expected to generate additional profits, with most of the proceeds likely to be returned to shareholders through share buybacks.
BAE Systems It rose 1.21% following the pricing of the initial public offering (IPO) of Air Astana, a Kazakhstan-based airline in which BAE Systems holds a 49% stake.
The IPO valued Air Astana at $847 million.
bellway The homebuilder managed to reverse the previous quarter’s losses with a 0.28% rise, in line with expectations after it reported a decline in housing income in the first half.
As a disadvantage, Legal/General Group Then it fell 3.11%. city The company has lowered its earnings per share forecast for 2023.
city also initiated a “negative catalyst watch” on Legal & General ahead of its full-year results in March, citing the possibility of a decline in earnings per share.
polymer specialist victrex Sales declined 2.98% after the company announced a weak start to the first quarter due to continued weakness in end markets and tough year-over-year comparisons.
Report by Josh White of Sharecast.com.
market mover
FTSE100 (UK X) 7,572.58 -0.30%
FTSE250(MCX) 19,062.32 -0.21%
Techmark (TASX) 4,402.27 0.19%
FTSE 100 – Riser
Smith (DS) (SMDS) 316.20p 2.46%
Entain (ENT) 1,009.50p 2.42%
Pershing Square Holdings, Inc. NPV (PSH) 3,942.00p 1.91%
Convatec Group (CTEC) 239.00p 1.88%
Persimmon (PSN) 1,400.50p 1.71%
Sage Group (SGE) 1,191.00p 1.58%
Relux SPLC (REL) 3,350.00 pence 1.48%
Hikma Pharmaceuticals (HIK) 1,958.50p 1.48%
Smurfit Kappa Group (CDI) (SKG) 3,176.00 pence 1.47%
Pearson (PSON) 952.40p 1.41%
FTSE 100 – Falls
Land Securities Group (LAND) 628.40p -3.35%
Fresnillo (FRES) 476.70p -3.35%
Legal and General Group (LGEN) 233.80p -3.11%
Glencore (GLEN) 385.05p -2.96%
British American Tobacco (BATS) 2,421.00p -2.54%
Prudential (PRU) 798.00p -2.47%
Ocado Group (OCDO) 513.20p -2.32%
Nawest Group (NWG) 210.70p -2.23%
Anglo American (AAL) 1,702.60p -2.13%
Burberry Group (BRBY) 1,262.00p -1.93%
FTSE 250 – Riser
Swiss Group (WOSG) watches 393.80p 5.75%
Future (FUTR) 702.00p 2.99%
Renishaw (RSW) 4,170.00p 2.96%
TI Fluid System (TIFS) 151.40p 2.85%
TBC Bank Group (TBCG) 2,930.00 pence 2.62%
Allianz Technology Trust (ATT) 335.50p 2.44%
IG Group Holdings (IGG) 687.00p 2.16%
Tallow oil (TLW) 30.68p 2.13%
Baillie Gifford Japan Trust (BGFD) 748.00p 2.05%
SDCL Energy Efficiency Income Trust (SEIT) 54.90p 2.04%
FTSE 250 – Falls
Close Brothers Group (CBG) 429.40p -8.59%
Hochschild Mining (HOC) 90.05p -4.00%
Just Group (JUST) 81.50p -3.89%
Wizz Air Holdings (WIZZ) 2,049.00 pence -3.07%
Weatherspoon (JD) (JDW) 806.50p -2.83%
Sequoia Economic Infrastructure Income Fund Limited (SEQI) 80.10p -2.67%
AJ Bell (AJB) 315.60p -2.65%
British Land Company (BLND) 368.30p -2.51%
Essentra (ESNT) 163.40p -2.51%
Dr. Martens (DOCS) 84.85p -2.42%