28th Sep 2023 16:55
(Alliance News) - London's FTSE 100 managed to push into the green on Thursday, though it fell short of the more convincing gains by European peers, which recovered some poise after a difficult week so far.
Ex-dividend shares, as well as a slight rebound for the pound, kept a lid on London's blue-chip index.
The FTSE 100 index rose 8.63 points, or 0.1%, at 7,601.85. The FTSE 250 fell 121.55 points, or 0.7%, at 18,098.68, and the AIM All-Share fell 3.55 points, or 0.5%, at 724.98.
The Cboe UK 100 rose 0.2% to 758.70, the Cboe UK 250 closed down 0.6% at 15,768.57, and the Cboe Small Companies fell 0.7% at 13,370.00.
In European equities on Thursday, the CAC 40 in Paris rose 0.6%, while the DAX 40 in Frankfurt climbed 0.7%.
Stocks in New York were higher. The Dow Jones Industrial Average was up 0.5%, while the S&P 500 index and Nasdaq Composite each added 0.7%.
"The one-way move in indices of the past week has paused this afternoon. European markets have edged higher and on Wall Street traders have done a small spot of bargain-hunting as the end of Q3 looms. But the worries about higher oil prices and rising yields haven't gone away," IG analyst Chris Beauchamp commented.
"Signs of progress on avoiding a US government shutdown were apparent overnight, but the day has seen opposing plans gain momentum, a sign of the wide split between the two parties. Government shutdowns of themselves don't tend to spark bouts of risk aversion, but as part of a cocktail of other concerns like higher oil prices it could put more pressure on stocks as September gives way to October."
The pound was quoted at USD1.2209 late Thursday in London, higher compared to USD1.2140 at the close on Wednesday. A stronger pound puts pressure on the FTSE 100, which is stacked with international earners.
The euro also advanced against the dollar, despite a tamer German inflation reading taking some sting out of European Central Bank interest rate expectations. The euro stood at USD1.0568, higher against USD1.0517.
Germany's consumer price inflation rate cooled to its tamest since February 2022, numbers from Destatis showed on Thursday.
The consumer price index rose by 4.5% in September from a year before, according to a preliminary reading, slowing from a 6.1% annual increase in August. CPI inflation had been expected to cool by slightly less, to 4.6%, according to market consensus cited by FXStreet.
"This is the lowest value since the outbreak of war in Ukraine. Most recently, the inflation rate in February 2022 was 4.3%, lower than in the current month," Destatis said.
Against the yen, the dollar was trading at JPY149.36, slightly lower compared to JPY149.42.
In London, Barratt, Phoenix Group and M&G were among the worst FTSE 100 performers, down 7.3%, 6.7% and 3.5%. The trio went ex-dividend, meaning new buyers no longer qualify for the latest payout.
In the FTSE 250, Digital 9 Infrastructure plunged 40%.
The company, which invests in assets such as data centres, subsea fibre cables, and mobile phone masts, withdrew its dividend target as it turned to an interim loss, citing soft UK consumer confidence and high inflation.
Digital 9 Infrastructure's net asset value on June 30 was 100.13 pence per share, down from 109.76p on December 31 and from 105.13p a year prior. Its NAV total return for the six months was negative 11.2%, compared to positive 10.7% a year before.
"The period has been characterised by a continued challenging macroeconomic backdrop across major developed economies, with rising inflation and interest rates resulting in continued uncertainty for the capital markets. That same difficult macroeconomic environment has continued to impact the company's liquidity and sustainable balance sheet management," the company said.
Renewi closed up 31% at 665.91 pence after Macquarie Asset Management said it is considering making a takeover offer for the firm worth GBP636 million.
Milton Keynes-based Renewi turns waste into recycled products. Macquarie Asset Management is part of Sydney-based financial services firm Macquarie Group.
Macquarie said the offer would be by one or more of its managed funds. It said that on Monday it had proposed to the Renewi board an offer of 775p per share in cash. This was rejected, Macquarie said.
Renewi later Thursday confirmed it had rejected the offer, calling it "an unsolicited and highly conditional non-binding proposal". Renewi said its board considered the proposal "in detail" and believes it "fundamentally undervalues the value of Renewi and its prospects".
Also jumping, Vast Resources surged 64%. It said strike action by mine workers at its Baita Plai polymetallic asset in Romania has ended.
Vast Resources last week Friday had noted that some Romanian press outlets have reported strike action by mine workers at its Baita Plai mine.
"The strike action, which was undertaken illegally, was reported from the mine and coordinated by a small number of individuals," Vast Resources said at time.
"The majority of the workforce remain supportive of the company and continue to perform their duties on site without impediment; as such the impact on operations at Baita Plai is expected to be minimal."
The company said on Thursday "that the protest has ended and operations continue as normal at Baita Plai".
Brent oil was quoted at USD94.09 a barrel in London on Thursday, down from USD95.52 at the London equities close on Wednesday.
Gold was quoted at USD1,861.02 an ounce late Thursday, lower against USD1,880.42 on Wednesday.
Friday's economic calendar has a eurozone inflation reading at 1000 BST, after UK gross domestic product data at 0700 BST.
The local corporate calendar has third-quarter results from cruise ship operator Carnival.
By Eric Cunha, Alliance News news editor
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