23rd Dec 2022 13:06
(Alliance News) - The FTSE 100 closed flat in a shortened session on Friday, but had a positive week overall.
The index of London large-cap stocks closed up 3.73 points, 0.1% at 7,473.01, rising 1.9% this week.
"Unless US markets can stage something of a late save this afternoon, it is going to be a rather sour end to the year for stocks. In such a tough year for stocks, it is an achievement for the FTSE 100 to finish for Christmas more or less flat for the year so far, while others have suffered much more," said IG's Chris Beauchamp.
The FTSE 100 index is down 0.4% in the year-to-date.
Meanwhile, the FTSE 250 ended up 68.01 points, 0.4%, at 18,830.08 on Friday, closing the week up 1.3%, while the AIM All-Share closed up 3.95 points, 0.5%, at 830.13, ending the week 0.9% higher.
The Cboe UK 100 ended up 0.1% at 747.36, the Cboe UK 250 closed up 0.6% at 16,298.96, and the Cboe Small Companies ended up 0.5% at 13,054.55.
The London Stock Exchange closed early at 1230 GMT on Friday for the festive period. It will be closed on Monday and Tuesday, before reopening on Wednesday.
In European equities on Friday at 1230 GMT, the CAC 40 in Paris was down 0.2%, while the DAX 40 in Frankfurt was up 0.2%.
Financial markets in the US, France, and Germany will be closed on Monday, with trading to resume on Tuesday.
Stocks in New York were called to a higher open at the London equities close, with the DJIA called up 0.2% and the S&P 500 index and the Nasdaq Composite both called up 0.1%.
"US index futures have regained some of their poise after Thursday's big plunge, which erased gains made earlier in the week. We have core PCE price index coming up today to help lift sentiment. But if the Fed's preferred inflation gauge doesn't show a similar drop as CPI, the markets will likely remain under pressure," said City Index and FOREX.com's Fawad Razaqzada.
The monthly personal consumption expenditures reading from the US is due at 1330 GMT.
According to FXStreet-cited consensus, PCE is expected to tick down to 4.7% annually in November from 5% in October, and remain unchanged on a monthly basis at 0.2%.
Released earlier this month, the US consumer price index rose 7.1% in November, slowing from 7.7% in October.
The dollar was mixed against major currencies ahead of the PCE inflation data.
Sterling was quoted at USD1.2064 at the London equities close on Friday, firm on USD1.2028 at the close on Thursday. The euro traded at USD1.0615, higher than USD1.0599. Against the yen, however, the dollar was quoted at JPY132.72, up versus JPY132.32.
In commodities, gold was quoted at USD1,798.25 an ounce on Friday at midday, up from USD1,796.92 late on Thursday.
Miners ended the shortened equities trading session higher, with Anglo American up 1.2%, Rio Tinto up 1.2%, and Endeavour up 0.7%.
Brent oil fetched at USD82.67 a barrel, flat from USD82.69. But the price remains elevated. At the London market close last Friday, it was quoted at USD78.82.
Moscow may cut oil production by up to 7% in early 2023 following an oil price cap agreed by Western countries, according to a Russian deputy prime minister.
"At the start of next year, we could make a reduction of 500,000-700,000 barrels per day. For us, that's around 5-7%," Alexander Novak, who is in charge of Moscow's energy policy, said according to Russian news agencies.
He said Russia will not supply oil to countries that are enforcing a price cap – a part of punitive measures on Moscow following its offensive in Ukraine.
"Some market participants are giving more weight to supply risks into the new year beyond the estimated 1 million barrels per day cut due to EU sanctions and G7 price cap effects," said Stephen Innes, managing partner at SPI Asset Management.
"But nothing like Russia ringing in the holiday cheers, with the US getting blanketed by a polar vortex. Hence the conspicuous timing has not gone unnoticed by oil traders either, so the reaction has been muted to Russian threats," he added.
A "once-in-a-generation" winter storm with temperatures as low as minus 40 degrees Fahrenheit caused Christmas travel chaos in the US on Thursday, with thousands of flights cancelled and major highways closed. Heavy snow and howling winds upended holiday plans at one of the busiest times of the year, as a huge cold front swept down from the Arctic and took freezing hold of the middle of the country.
In the FTSE 250 index in London, real estate investor Shaftesbury added 2.3%.
This comes despite news that the UK competition watchdog has opened an inquiry into its merger with Capital & Counties.
The UK Competition & Markets Authority said it is considering whether a merger between the two companies would result in "a substantial lessening of competition within any market or markets in the UK".
The CMA said the merger inquiry has a deadline of February 22 for its phase 1 decision.
Capital & Counties closed up 2.4%.
On AIM, Gfinity plunged 42%, as the e-sports and gaming services firm reported disappointing annual results.
For the financial year that ended on June 30, it said pretax loss widened to GBP4.2 million slightly from GBP4.1 million the year before. Revenue fell 7.0% to GBP5.3 million from GBP5.7 million.
Looking ahead, Gfinity said the e-sports and gaming sectors continue to grow, forming part of a systematic change in the media industry towards digital, streamed and gaming-related content.
Next week's economic calendar is quiet. Monday has a speech from Bank of Japan Governor Kuroda, with a slew of Japanese data on Tuesday and more to follow on Wednesday.
There are no scheduled events in the UK corporate calendar next week.
By Elizabeth Winter, Alliance News senior markets reporter
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