3rd Jan 2025 07:41
(Alliance News) - London's FTSE 100 is called to open slightly lower on Friday, after emerging from the new year with a hefty rise on Thursday.
US stocks faltered on the first day of dealings in 2025, while stocks in the Asia Pacific region traded mixed on Friday.
Sydney's flagship index registered a climb, but the Shanghai Composite in China endured a grim afternoon to end sharply lower.
On Friday, the US ISM manufacturing PMI at 1500 GMT will be the highlight of the global economic calendar.
Figures on Thursday had showed the US labour market remains robust while manufacturing activity, although weak, ticked up from an earlier estimate.
The seasonally adjusted S&P Global US manufacturing purchasing managers' index fell to 49.4 in December, down from 49.7 in November.
But December's reading was better than the preliminary "flash" estimate of 48.3, although it marked the sixth consecutive month of contraction.
Meanwhile, data showed weekly jobless claims, considered a proxy for lay-offs, fell by more than expected, allaying fears of a slowing jobs market.
According to the Department of Labor, in the week ending December 28, the advance figure for seasonally adjusted initial claims was 211,000, a decrease of 9,000 from the previous week's revised level.
The previous week's level was revised up by 1,000 from 219,000 to 220,000. FXStreet consensus was for a slight increase to 222,000 in the most recent week.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called down 0.1% at 8,250.99
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Hang Seng: up 0.3% at 19,689.96
S&P/ASX 200: up 0.6% at 8,250.50
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DJIA: closed down 151.95 points, 0.4% at 42,392.27
S&P 500: closed down 0.2% at 5,868.55
Nasdaq Composite: closed down 0.2% at 19,280.79
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EUR: higher at USD1.0277 (USD1.0251)
GBP: higher at USD1.2393 (USD1.2378)
USD: lower at JPY157.18 (JPY157.63)
GOLD: lower at USD2,652.44 per ounce (USD2.657.49)
OIL (Brent): lower at USD75.85 a barrel (USD76.43)
(changes since previous London equities close)
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ECONOMICS
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Friday's key economic events still to come:
08:55 GMT Germany unemployment
15:00 GMT US ISM manufacturing PMI
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Fewer consumers hit shops in the UK in December, while footfall fell for the second year in a row, a report on Friday showed. According to BRC-Sensormatic data, total UK footfall was down 2.2% in the five weeks to December 28 compared to 2023. This was an improvement on November's 4.5% decline, although this reflected the timing of Black Friday. This year's December figure includes Black Friday, rather than November’s figure, while the reverse was true in 2023. High street footfall decreased by 2.7% in December on-year, up from minus 3.7% in November. Retail park footfall was unchanged in December, up from minus 1.1% in November. Shopping centre footfall decreased by 3.3% in December, improving from minus 6.1% in November. For the three months to December footfall decreased by 2.5% on-year. Overall, UK footfall in 2024 was down 2.2% compared to 2023. Helen Dickinson, chief executive of the British Retail Consortium, said: "A drab December which saw fewer shoppers in all locations, capped a disappointing year for UK retail footfall. This means 2024 is the second year in a row where footfall has been in decline. High streets and shopping centres were hit particularly hard throughout the year as people veered towards retail parks to take advantage of free parking and the variety of larger stores. Even the golden quarter, typically the peak of shopping activity, provided little relief, with footfall down over the period. While the Black Friday weekend delivered more promising results, they were overshadowed by a lacklustre festive season."
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BROKER RATING CHANGES
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Berenberg cuts Vistry price target to 650 (750) pence - 'hold'
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UBS raises Wise price target to 1,240 (1,050) pence - 'buy'
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COMPANIES - FTSE 100
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GSK said its Nucala treatment has been approved in China to treat long-term sufferers of a sinus ailment. The pharmaceutical firm said the treatment has been backed in adults with chronic rhinosinusitis with nasal polyps. "It is estimated that about 107 million people in China suffer from chronic sinusitis, about 1/3 of whom have chronic sinusitis with nasal polyps," GSK said. Surgery is an option for sufferers of the condition, but GSK noted that flare-ups may yet occur. "Although surgery can be effective at removing polyps, the underlying type 2 inflammation means they have a tendency to regrow," the firm said.
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COMPANIES - FTSE 250
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Herald Investment called on shareholders to vote against general meeting motions proposed by Saba Capital Management, which had last month hit out at an "underwhelming" performance at a number of London-listed trusts. Herald, which invests in firms in technology and communications, believes its strategy has "been highly successful over the long term". "The board believes that, since its inception, Saba has materially underperformed Herald," Herald said. "Your board believes that if Saba gains control and seeks to implement a different strategy, significant value could be lost for shareholders as a result of forced selling of parts of the portfolio." A general meeting takes place on January 22. Last month, Saba called on investors of seven investment trusts to oust current management after "underwhelming", and in some cases "disastrous" shareholder returns. "We believe that the current boards have failed to hold the investment managers accountable, which is why we want to offer you the opportunity to elect new directors with a concrete plan to deliver shareholder value," Saba said in a letter to shareholders. The seven trusts called out were Baillie Gifford US Growth Trust, CQS Natural Resources Growth & Income, Edinburgh Worldwide Investment Trust, European Smaller Cos Trust, Henderson Opportunities Trust, Herald Investment Trust, and Keystone Positive Change Investment Trust.
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Wizz Air said passenger numbers climbed last month, though the carrier reported a slight decrease in capacity. Passenger numbers rose 1.9% on-year to 5.1 million in December, from 5.0 million a year prior. Capacity, measured in seats, declined 3.1% to 5.9 million from 6.0 million, however. "The positive yield environment and booking profile seen in November continued into December. Early indications for our Q4 period, ending March 2025, remain positive, with bookings currently running ahead by over 2ppts vs this time last year," Wizz added. "On December 31st, Wizz Air and Pratt & Whitney announced that they had agreed compensation terms related to those aircraft grounded due to issues with P&W's GTF engine. Broader negotiations on engine selection remain ongoing as Wizz continues to seek the most cost-efficient engine decision for its future." Fellow airline Ryanair said passenger numbers rose around 8% last month to 13.6 million from 12.5 million a year prior. On a rolling 12 month basis, Ryanair's passenger numbers were up at the same pace to 197.2 million from 181.8 million.
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OTHER COMPANIES
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Volex said its Murat Ticaret unit has topped earnings targets set out under the acquisition agreement. The manufacturer of critical power and data transmission products said the first tranche of a deferred consideration is now payable to four former owners of Murat Ticaret. Volex noted 50% of the sum will be satisfied through the issue of shares. As a result, the deferred sum includes EUR10 million in cash and 2.9 million in new Volex shares. Volex sealed the Turkish acquisition back in September 2023 for up to EUR178.1 million.
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By Eric Cunha, Alliance News news editor
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