24th Feb 2025 12:02
(Alliance News) - The FTSE 100 was in the green at midday on Monday in London, as the impact of Germany's recent federal elections continues to unfold.
Meanwhile across Europe, eurozone consumer price inflation picked up last month, numbers from Eurostat confirmed.
The euro area consumer price inflation rate accelerated to 2.5% year-on-year in January, from 2.4% in December, in line with the latest flash estimate. In the broader European Union, annual inflation picked up to 2.8% from 2.7%.
By sector, services made the largest contribution to eurozone inflation. Nonetheless, the pace of service price inflation abated to 3.9% in January from 4.0% in December.
The FTSE 100 index was up 11.39 points, 0.1%, at 8,670.76. The FTSE 250 was down 19.97 points, 0.1%, at 20,593.92, and the AIM All-Share was down 4.00 points, 0.6%, at 714.02.
The Cboe UK 100 was up 0.1% at 867.61, the Cboe UK 250 was up 0.1% at 17,962.88, and the Cboe Small Companies was down 0.1% at 15,823.93.
"The FTSE 100 made a steady start to the week as German elections largely delivered the result the market was expecting," says AJ Bell's Russ Mould. "There were gains elsewhere in Europe as a business-friendly government under new chancellor Friedrich Merz looks to have a clear path to victory."
On the FTSE 100, National Grid gained 1.4%.
The electricity and gas supplier agreed to sell its US onshore renewables business, National Grid Renewables, to Toronto-based Brookfield Asset Management and its institutional partners, including Brookfield Renewable Partners.
National Grid said the terms imply an enterprise value of USD1.74 billion, with the deal representing a milestone in its mission to streamline the business.
"The fact the company has got the deal across the line in the new [US] political environment might be met with some relief," Mould commented. "The price tag looks reasonable for a set of assets which made a modest contribution to the group.
"Attention may now turn to the company’s stated plan to sell its Grain LNG terminal in Kent – a proposal which attracted some controversy when it was announced over the potential impact to energy security."
Among smaller caps, Bank of Ireland jumped 6.2%.
The lender reported pretax profit of EUR1.86 billion in 2024, down 4.3% from EUR1.94 billion in 2023. Bank of Ireland also declared a 28 euro cents final dividend, resulting in a full-year payout of 63 cents, up 5.0% from 60 cents in 2023.
Looking ahead to 2025, Bank of Ireland guided for net interest income of greater than EUR3.25 billion, meaning a maximum decline of 9.0% from 2024.
Meanwhile in Amsterdam, Just Eat Takeaway.com surged 54% as investors reacted well to news of its EUR4.1 billion agreed acquisition by Prosus. Prosus however lost 6.6%.
"Prosus has its fingers in many pies for the online food delivery sector, owning Brazilian platform iFood, and minority stakes in the likes of Delivery Hero, Meituan and Swiggy," Mould noted. "Adding Just Eat to its stable would give Prosus a much stronger position in Europe and an opportunity to apply its technological advancements to a business that has found life a lot harder since the pandemic ended."
Separately, Just Eat said its annual pretax loss narrowed to EUR532 million in 2024 from EUR685 million in 2023. Revenue edged up 0.8% to EUR3.56 billion.
In European equities on Monday, the CAC 40 in Paris was down 0.1%, while the DAX 40 in Frankfurt was up 0.9%.
Mould commented: "European defence stocks made further gains off the back of Merz's call for Europe to seek independence from the US – with the obvious inference that the continent needs to take more responsibility for its own security."
Conservative leader and election winner Merz intends to invite Israeli Prime Minister Benjamin Netanyahu for an official visit to Germany, despite an outstanding international warrant for his arrest, Netanyahu said on Monday.
Last year, international arrest warrants were issued for Netanyahu and former Israeli defence minister Yoav Gallant on account of alleged war crimes in Gaza.
China is ready to work with the next German government to consolidate and expand the strategic partnership between the two countries, Foreign Ministry spokesman Lin Jian said in Beijing on Monday.
China has always viewed the relationship with Germany from a strategic and long-term perspective, said Lin, and is pleased that Germany and the EU play an important role in global affairs.
Elsewhere in Europe, Russia said Monday it was ready for talks on the three-year-old war in Ukraine but would only stop fighting when a peace settlement "suits" Moscow.
Russia also said it was trying to settle the Ukraine conflict with the US, but that Europe wanted the war to "continue".
Foreign Minister Sergei Lavrov held talks in Turkey on the third anniversary of Russia's invasion of Ukraine, with uncertainty hanging over US support for the wartorn country under President Donald Trump and Kyiv ceding ground to Moscow on the front line.
Meanwhile Ukrainian President Volodymyr Zelensky proposed a complete exchange of all prisoners of war with Russia as the "start" of a process on ending the conflict, in a summit in Kyiv on the third anniversary of Russia's invasion.
The pound was quoted at USD1.2638 at midday on Monday in London, lower compared to USD1.2641 at the equities close on Friday. The euro stood at USD1.0468, higher against USD1.0450. Against the yen, the dollar was trading at JPY149.72, higher compared to JPY149.45.
Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.8%, the S&P 500 index up 0.6%, and the Nasdaq Composite up 0.5%.
"Investors will be watching the US market after Friday's sell-off on tariff fears and wider concerns about the health of the American economy," commented Mould. "Futures markets were suggesting Monday would see a recovery, with Nvidia's earnings on Wednesday promising to have a significant impact on market sentiment."
Brent oil was quoted lower at USD74.57 a barrel at midday in London on Monday, down from USD74.89 late Friday.
Gold was quoted higher at USD2,943.77 an ounce against USD2,935.51.
Still to come on Monday's economic calendar are the readings from the Chicago Fed national activity index and the Dallas Fed manufacturing index.
By Emma Curzon, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.