31st Dec 2024 12:56
(Alliance News) - Stocks in London closed higher on Tuesday, growing in confidence as the abbreviated trading day wore on, and ensuring 2024 delivered the best annual gain for the FTSE 100 in three years.
The FTSE 100 index ended up 52.01 points, 0.6%, at 8,173.02. It is up 5.7% for the year. It is the best year for the blue-chip index since 2021, when it jumped 14% on a post-Covid recovery. In 2022, it rose by a meagre 0.9%, and then it advanced 3.8% in 2023.
The FTSE 250 surged 218.06 points, 1.1%, on Tuesday, ending the year at 20,622.61. The AIM All-Share rose 5.40 points, 0.8%, at 719.63.
For the year, the FTSE 250 added 4.7%, while the AIM All-Share shed 5.7%. The junior market was weighed down by worries about the fate of UK inheritance tax relief on AIM stocks.
The Cboe UK 100 was ended up 0.6% at 819.07, the Cboe UK 250 advanced 1.1% at 18,057.62, and the Cboe Small Companies climbed 1.0% to 15,923.94.
In Paris, the CAC 40 rose 0.9% on Tuesday.
The pound was higher at USD1.2535 on Tuesday afternoon, from USD1.2517 at the time of the local equities close on Monday. The euro was up at USD1.0402 against USD1.0384. Versus the yen, the dollar was down at JPY156.74 from JPY157.19.
The year has been a strong one for the dollar, boosted by a rampant US economy. The pound was resilient for much of the year, however, sitting as high as USD1.3429 in September, its best level since March 2022.
The euro, however, has struggled. It fell as low as USD1.0333 in November, and eyes next year will be on whether it falls to dollar parity again. Back in July 2022, it fell to dollar parity for the first time since 2002.
A barrel of Brent rose to USD74.21 on Tuesday afternoon, from USD73.93 at the time of the London equities close on Monday. Gold rose to USD2,610.61 an ounce from USD2,597.04.
Gold had hit a record high above USD2,790 in October. Brent's best level of the year, USD92.14 a barrel, was achieved in April. There was somewhat of a to-and-fro for oil prices following that, with geopolitical tensions and worries over demand pulling crude one way and the other.
On Tuesday, fresh data from China, the world's top crude importer, revealed a third consecutive month of manufacturing growth, albeit at a slower pace.
China's purchasing managers' index - a key measure of industrial output - was 50.1 in December, marking a third consecutive month of expansion, according to the National Bureau of Statistics.
Tuesday's figure was lower than Bloomberg analysts' prediction of 50.2, but still above 50, which indicates an expansion in manufacturing activity.
AFP reports that President Xi Jinping said China must put "more proactive" macroeconomic policies in place next year, according to state media, as he addressed a top political advisory body on New Year's Eve.
Among blue-chip shares in London, it was a strong year for lenders. NatWest rose 0.5% on Tuesday, while Barclays added 1.3%. The duo have shot up around 83% and 74% this year.
JD Sports closed 3.3% higher, among the best FTSE 100 performers on Tuesday. It is down over 40% for the year, however. The athleisure retailer had kicked off the year with a profit outlook downgrade, setting the tone for a tricky 2024.
Vistry recently lost its place in the FTSE 100, and shares in the housebuilder have slumped almost 40% in 2024 amid a slew of profit warnings, the most recent coming last week. Shares rose 0.8% on Tuesday, however.
Luxury retail had a tough year, with Burberry shedding some 30%. It tempered its annual decline with a 1.8% rise on Tuesday.
Over in Paris, LVMH lost more than 10% for the year. Gucci owner Kering fell some 40%.
Among the standouts in a tough year for the AIM junior market, shares in gold producer Pan African Resources are up roughly double. Rosebank Industries, one of only a handful of new listings on AIM this year, has shone on the stock market so far. Shares have roughly doubled from its 434.00p float price.
Rosebank is run by founders and former senior managers of Melrose Industries and will follow a similar strategy of buying and improving industrial companies. It debuted in July.
Set to exit the London market next year, DG Innovate shares slumped 70% on Tuesday.
The developer of sustainable mobility and energy storage technology hit out at listing rules in a parting shot.
DG's delisting is expected to be effective from January 31.
"DGI's management team has made significant operational progress over the past 12 months, including: signing of the Indian joint venture agreement with EVage, delivering the Pareta P450 and e-brake motor prototypes to partner Cummins, and completion and initial testing of the first P80 samples in the past week. Despite this, the company has found it difficult to raise sufficient funds to invest in its commercialisation strategy during this period, and in general since coming to market via reverse takeover in April 2022. This is in part due to its current listing and the constraints of the associated prospectus rules. However, it is also clear that there has been and remains a broad lack of demand for exposure to companies at DGI's current stage of development within the UK's traditional institutional investor base," the firm said.
Shares in New York are called to open higher. The Dow Jones Industrial Average is called up 0.3%, and the S&P 500 and Nasdaq Composite up 0.4%.
It was another bullish year for US stocks, despite some tough trade so far this week.
"This decline occurred as investors took profit after a year of strong growth. Despite this temporary drop, the market continues to show strength, driven by solid fundamentals and a favourable economic environment in 2024," XS.com analyst Antonio Di Giacomo commented.
"Although the S&P 500 recently experienced a decline due to profit-taking, the overall outlook for the index remains encouraging. With a potential record close in 2024, a positive fourth quarter driven by political and economic factors, and expectations of interest rate cuts on the horizon, the market could solidify one of its best performances in years."
Financial markets across the globe are closed on Wednesday for New Year's Day. On Thursday, eyes turn to a slew of purchasing managers' index readings, including one from the UK at 0930 GMT, after the eurozone at 0900.
By Eric Cunha, Alliance News news editor
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