17th Oct 2024 08:32
(Alliance News) - Stock prices in London were lower on Thursday morning, flipping to red a day after inflationary data, and ahead of an interest rate call from the European Central Bank later.
The FTSE 100 index was down 5.63 points, or 0.1%, at 8,323.44. The FTSE 250 was down 16.90 points, or 0.1%, at 20,962.60, and the AIM All-Share was up 1.56 points, or 0.2%, at 740.99.
The Cboe UK 100 was slightly lower at 834.39, the Cboe UK 250 was 0.1% lower at 18,565.09, and the Cboe Small Companies was up slightly at 17,082.23.
In European equities on Thursday, the CAC 40 in Paris was down 0.4%, while the DAX 40 in Frankfurt was down 0.3%.
European Central Bank policymakers meet on Thursday with fading price pressures and weaker economic activity in the eurozone nudging them towards making another cut to interest rates.
Recent data show that inflation in the eurozone has slowed considerably. For the whole of the eurozone, the annual rate of consumer price rises was 1.8% – the first time it has been below the ECB's 2% target in three years.
After cutting rates twice already this year, including at their last meeting in September, policymakers initially signalled a preference to wait until December to cut again. But September's below-expectations reading has added to the sense that consumer prices are back under control after they soared in the wake of the coronavirus pandemic and the Russian invasion of Ukraine.
The pound was quoted at USD1.2983 early on Thursday in London, lower compared to USD1.3006 at the equities close on Wednesday.
Private sector landlords in the UK have called on Rachel Reeves to give them new tax breaks to help keep rents down and boost the supply of homes.
In a letter to the chancellor ahead of the budget, representative bodies said their members are facing "uncertainty on a number of fronts" and require stability and clarity to help address the "severe shortage of homes" which has left tenants "struggling".
Analysis by Rightmove showed average advertised rents have hit a record high amid signs landlords are selling up, with 18% of homes for sale being previously available for rent between July and August.
The letter – signed by the National Residential Landlords Association, Propertymark, Goodlord and Large Agents Representation Group – urged the government to reconsider the way the sector is taxed as part of the solution.
The euro stood at USD1.0851, lower against USD1.0874.
"The market's reaction to ECB decision and the post-decision presser could be mixed. A rate cut today, a dovish message from the ECB and another 25bp cut in December are already widely priced in. Lagarde's tone at the post-decision press conference will play a crucial role in determining whether the euro will further weaken against the dollar," said Swissquote Bank's Ipek Ozardeskaya.
Against the yen, the dollar was trading at JPY149.59, down compared to JPY149.65.
In the FTSE 100, Mondi dropped 4.4%.
For three months to September 30, the firm reported underlying earnings before interest, tax, depreciation of EUR233 million, lower than EUR351 million the previous quarter.
Mondi this was expected and primarily due to more planned maintenance shuts and a forestry fair value loss. This was in addition to softer seasonal demand and higher input costs.
Looking ahead, Chief Executive Officer Andrew King says: "We are making good progress towards completing the paper machine investments at Steti and Duino, both expected to start-up as planned. Overall, our organic growth investments are expected to deliver a meaningful Ebitda contribution from 2025."
Elsewhere, BHP Group lost 2.3%.
It posted disappointing production for the first three months of its financial year on a quarterly basis, but said annual performance was strong across most of its operations.
The Melbourne-based diversified miner also indicated it was on track to meet its production guidance for the 2025 financial year.
On an annual basis, copper production was up 4.2% at 476,000 tonnes for the first quarter that ended September 30 from 457,000 tonnes in the same quarter a year before. But copper output fell 5.7% from 505,000 tonnes in the fourth quarter to June 30, due to planned maintenance, lower concentrator throughput and production across leaching at Escondida in Chile, and planned lower grades at Spence also in Chile.
For the 2025 financial year, annual copper production is seen between 1.84 million tonnes and 2.04 million tonnes, compared to 1.86 million tonnes a year earlier.
Elsewhere, N Brown surged 42%.
It accepted a takeover offer by Falcon 24 Topco, a company owned by Joshua Alliance. The offer values the clothing and footwear online retailer at around GBP191 million, with each N Brown shareholder entitled to receive 40 pence per share in cash.
The transaction is expected to close in the first quarter of 2025.
Separately, Selkirk announced its intention to raise GBP7.5 million through a placing and at the same time seek admission of its shares on the London Stock Exchange's AIM Market.
Assuming a GBP7.5 million raise, it expects 20% of the shares will be held by Kelso Ltd, the wholly owned subsidiary of Kelso Group Holdings PLC, the main market listed acquisition vehicle; and 18% of the shares to be held by funds controlled by Belerion Capital Group, where Iain McDonald, proposed executive chair, is the manager.
In Asia on Thursday, the Nikkei 225 index in Tokyo was down 0.7%. In China, the Shanghai Composite was down 1.0%, while the Hang Seng index in Hong Kong was down 0.6%. The S&P/ASX 200 in Sydney closed up 0.9%.
Japanese exports unexpectedly declined on-year for the first time in 10 months, as weaker global demand and a stronger yen hit the country's manufacturers in September.
Japan's exports rose 7.2% to JPY9.038 trillion in September from JPY8.433 trillion in August, but were 1.7% lower than JPY9.199 trillion in September 2023.
Japan's imports climbed 2.1% to JPY9.332 trillion in September from JPY9.137 trillion in August, and were 2.1% higher than JPY9.138 trillion in September 2023.
The country's trade surplus fell to JPY294.34 billion, about USD1.97 billion, in September from JPY703.20 billion in August, but was up from JPY60.56 billion in September 2023.
In September the yen traded at its strongest levels against the dollar for the year to date, briefly hitting JPY140.8. It has weakened in October after new Prime Minister Shigeru Ishiba questioned the need for further interest rate increases by the Bank of Japan.
In the US on Wednesday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.8%, the S&P 500 up 0.5% and the Nasdaq Composite up 0.3%.
Kamala Harris pledged a clean break from Joe Biden's presidency Wednesday in an interview with right-wing Fox News aimed at reaching Republican voters wary of Donald Trump.
Harris clashed with interviewer Bret Baier on hot-button issues including immigration and gender transition surgery, with the Democratic nominee repeatedly asking "may I finish" when the host talked over her answers.
A key moment in the half-hour sit-down came as Harris was being pressed on comments she made last week – that Republicans have seized on – when she said she could not think of anything she would have done differently from Biden during his four years in office.
"My presidency will not be a continuation of Joe Biden's presidency," said Harris, who became her party's nominee after the ageing Biden dropped out in July.
Harris said she would bring "fresh and new ideas" and added: "I represent a new generation of leadership.
Brent oil was quoted at USD74.03 a barrel early in London on Thursday, up from USD73.83 late Wednesday.
Gold was quoted at USD2,682.20 an ounce, higher against USD2,673.31.
Still to come on Thursday's economic calendar, there is trade balance, CPI data, and an interest rate decision from the eurozone. Later in the day, there are initial jobless claims, industrial production, and retail sales, among other prints, from the US.
By Holly Beveridge, Alliance News senior reporter
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