Become a Member
  • Track your favourite stocks
  • Create & monitor portfolios
  • Daily portfolio value
Sign Up
Quickpicks
Add shares to your
quickpicks to
display them here!

LONDON MARKET CLOSE: China trade boosts stocks but oil majors struggle

26th Sep 2024 16:56

(Alliance News) - Stock prices in London closed higher on Thursday, with the FTSE 250 taking a starring role, as equities continued to be boosted by China stimulus plans.

Miners continued to rise, while luxury retail also moved higher again, boosting the CAC 40 in Paris. Travel stocks joined in on the rally, after a bullish update from a US peer.

Share price falls for oil majors kept a lid on the FTSE 100's progress, however.

The FTSE 100 index closed up 16.21 points, 0.2%, at 8,284.91. The FTSE 250 jumped 255.00 points, 1.2%, at 21,010.44, and the AIM All-Share added just 0.17 of a point to 741.65..

The Cboe UK 100 ended up 0.2% at 829.59, the Cboe UK 250 rose 1.5% to 18,532.37, though the Cboe Small Companies fell 0.8% to 16,816.99.

In European equities on Thursday, the CAC 40 in Paris soared 2.3%, while the DAX 40 in Frankfurt added 1.7%.

Helping lead the charge in Paris were luxury goods firms LVMH and Kering, jumping 9.4% and 9.3%. In Frankfurt, shares in laboratory equipment supplier Sartorius, also aided by the China narrative, jumped 8.1%. The likes of lender Commerzbank, sportswear firm Adidas and industrial company Siemens were also among those to push higher.

The pound was quoted at USD1.3412 at the time of the closing bell in London on Thursday, up from USD1.3351 on Wednesday. The euro stood at USD1.1179, up against USD1.1155. Against the yen, the dollar was trading at JPY144.69, higher compared to JPY144.44.

Stocks in New York were higher. The Dow Jones Industrial Average was up 0.5%, while the S&P 500 and the Nasdaq Composite were each up 0.2%.

The US economy grew at a pace of 3.0% quarter-on-quarter on an annualised basis in the three months to June 30. The third estimate was in line with the second. The first estimate had put growth at 2.8%.

The US economy picked up speed from a 1.6% advance in the first quarter.

"We had feared that, given the gap between GDP and GDI, the former would be revised lower. As it turns out, however, the level of real GDP was revised up by 1.3%," Capital Economics analyst Ashworth said.

Real gross domestic income increased 3.4% on-quarter, the reading upwardly revised from 2.1%.

The BEA describes GDI as a "measure of the incomes earned and the costs incurred in the production of gross domestic product".

Next up on the US economic calendar is Friday's core personal consumption expenditures reading. The core PCE data is the Federal Reserve's preferred inflationary gauge.

According to FXStreet cited consensus, the core PCE index is expected have grown 2.7% on-year last month, picking up from 2.6% in July.

Oxford Economics analyst Michael Pearce commented: "The Fed is still likely to be cutting interest rates next year, but we think the pace of rate cuts will be more gradual than the continued rapid easing priced into financial markets."

Brent oil was quoted at USD71.58 a barrel late on Thursday afternoon, down markedly from USD74.38 late Wednesday. Gold was quoted at USD2,669.65 an ounce, up against USD2,656.90.

Weighing on Brent was news that Saudi Arabia will call time on its USD100 a barrel Crude price target.

The Financial Times reported the kingdom is ready to concede that this is a period of weaker pricing for oil.

Citing people familiar with the matter, the FT said officials in Saudi Arabia are eyeing lifting output at the start of December as planned, even if it means prices stay weak.

Tracking oil prices lower, Shell fell 4.6% and BP lost 4.1%. The duo were among the worst FTSE 100 performers.

On the up were China-exposed stocks once again. Asia-focused insurer Prudential added 6.2%, miner Antofagasta rose 5.8% and lender Standard Chartered climbed 5.3%.

"It seems like China hasn't run out of kitchen sinks just yet, as reports swirl about a hefty USD142 billion injection into top banks," SPI Asset Management analyst Stephen Innes commented.

China trade boosted luxury retail. Burberry ended 8.7% higher, among the best in the FTSE 250. Rolex watch seller Watches of Switzerland Group surged 11%. Deutsche Bank lifted WoSG to 'buy' from 'hold'.

Airline stocks also flew. easyJet added 1.8%, while Wizz Air rose 5.2%.

Over in New York, Southwest Airlines jumped 11%. The carrier lifted its outlook. It expects third-quarter revenue per available seat mile to rise between 2% and 3% on-year. It had previously predicted an outcome which ranged from a 2% decline to flat year-on-year.

In addition, it authorised a new USD2.5 billion share buyback.

Back in London, Videndum plunged 21%. The film industry-focused software and hardware manufacturer said revenue for the first half of 2024 decreased to GBP153.3 million from GBP165.0 million, reflecting "post-strike recovery in the cine and scripted TV market" which Videndum said is "taking longer than anticipated".

Videndum said it has "good medium-term prospects" but that it expects 2024 orders to be below previous expectations.

Friday's local corporate calendar has half-year results from clean energy technology firm Ceres Power.

The economic calendar has a eurozone consumer confidence reading at 1000 BST, before the US data at 1330 BST.

By Eric Cunha, Alliance News news editor

Comments and questions to [email protected]

Copyright 2024 Alliance News Ltd. All Rights Reserved.

FTSE 100 Latest
Value8,281.53
Change12.83