20th Jan 2025 09:02
(Alliance News) - Stock prices in London opened mixed but with gains for the FTSE 100 on Monday, while in Europe, Destatis reported that German producer prices unexpectedly declined in December.
Financial markets are closed in the US on Monday to mark Martin Luther King, Jr. Day, and as president-elect Donald Trump prepares to officially take office.
The FTSE 100 index opened up 16.47 points, 0.2%, at 8,521.69. The FTSE 250 was down 45.49 points, 0.2%, at 20,551.93, and the AIM All-Share was up 1.13 points, 0.2%, at 720.20.
The Cboe UK 100 was up 0.2% at 854.17, the Cboe UK 250 was down 0.1% at 17,960.63, and the Cboe Small Companies was down 0.6% at 15,632.11.
Pershing Square was the second-highest FTSE 100 constituent, up 1.1%.
The closed-ended investment fund announced that it will pay a dividend of 16.46 US cents per share for all four quarters of 2025.
John Wood was the highest FTSE 250 firm, up 2.0% after it announced a new contract with Esso Australia for mining asset maintenance work.
It said the contract zone covers the joint venture between Esso and Woodside Energy, and will create 250 jobs.
Grainger was the second-biggest loser, down 2.3% after Peel Hunt cut it to 'hold' from 'add' and lowered the price target to 220 from 270 pence.
In small caps, Reach surged 22%.
The newspaper publisher said it expects 2024 results to exceed market expectations, which forecast a GBP97.8 million adjusted operating profit. It also said it has completed refinancing of its banking facilities, consisting of a GBP145 million revolving credit facility maturing in 2028.
Sanderson Design dropped 18%, after saying it expects 2025 group sales to decrease on-year to GBP101 million, and Brand product sales to fall 9%. It is eyeing underlying pretax profit of between GBP4.0 million and GBP4.8 million.
The interior design and furnishings company noted that its previous full-year expectations "were reliant on a projected improvement in the trading environment", but said that since its first-half results trading conditions have worsened and customer demand is subdued, "particularly for fabric".
In European equities on Monday, the CAC 40 in Paris was up 0.4%, while the DAX 40 in Frankfurt was up 0.1%.
According to the Federal Statistical Office in Germany, producer prices increased 0.8% in December from a year before, with PPI inflation accelerating from 0.1% for November but below FXStreet-cited market consensus for a 1.1% increase. On a monthly basis, prices decreased 0.1% in December, missing consensus for a 0.3% rise.
The pound was quoted higher at USD1.2197 early on Monday in London, compared to USD1.2189 at the equities close on Friday. The euro stood higher at USD1.0311, against USD1.0292. Against the yen, the dollar was trading lower at JPY156.05 compared to JPY156.34.
In Asia on Monday, the Nikkei 225 index in Tokyo was up 1.2%. In China, the Shanghai Composite was up 0.1%, while the Hang Seng index in Hong Kong was up 1.8%. The S&P/ASX 200 in Sydney closed up 0.5%.
The People's Bank of China has announced that it would leave key interest rates unchanged, maintaining its one-year loan prime rate at 3.1% and the five-year LPR at 3.6%.
In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.8%, the S&P 500 up 1.0% and the Nasdaq Composite up 1.5%.
US markets registered their first weekly gain this year, ahead of what is likely to be a defining moment when the new President is inaugurated later today.
"Investors will not have the luxury of being able to react immediately, with markets closed...but the expected slew of executive orders which are likely to be announced within hours sets up an interesting start to trading tomorrow," said interactive investor's Richard Hunter. "Particular attention will be given to some of the measures promised during the election campaign, such as the potentially inflationary effects of tax cuts and tariffs in a show of American exceptionalism.
"The so-called "Trump trades", which have ranged across the likes of the financials and smaller cap stocks, could be in sharp focus.
Brent oil was quoted higher at USD80.42 a barrel early in London on Monday from USD80.05 late Friday.
Gold was quoted lower at USD2,705.63 an ounce against USD2,715.22 on Friday.
Still to come on Monday's economic calendar is eurozone construction output data.
By Emma Curzon, Alliance News reporter
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