Stock prices in Europe closed mostly in the green on Thursday, as oil prices recovered during quiet Thanksgiving trade and after the release of European Central Bank minutes.
The FTSE 100 index closed up 14.07 points, 0.2%, at 7,483.58. The FTSE 250 ended up 0.66 of a point at 18,480.83, and the AIM All-Share closed up 1.18 points, or 0.2%, at 718.08.
The Cboe UK 100 ended up 0.3% at 747.41 and the Cboe UK 250 closed up 0.1% at 15980.88. However, the Cboe Small Companies ended down 0.4% at 13490.69.
In European equities on Thursday, the CAC 40 in Paris and the DAX 40 in Frankfurt both ended up 0.2%.
Minutes from the ECB on Thursday showed that all members agreed to keep the three key ECB interest rates at their current levels. At the September meeting, however, minutes showed that the interest rate decision was a ‘close call’.
In October, the ECB left its key interest rates unchanged. In its first pause since beginning its hiking cycle last July, the Frankfurt-based official lender left the interest rate on the main refinancing operations, the marginal lending facility, and the deposit facility at 4.50%, 4.75% and 4.00%, respectively.
‘Confidence was expressed that the current monetary policy stance was sufficiently restrictive, which gave the Governing Council the opportunity to keep rates at current levels and take time to assess the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission,’ the minutes said.
ING Economics said: ‘In short, the minutes underline the ECB’s more cautious take on the economy and, in fact, mark the next phase of monetary policy tightening: ending rate hikes and focusing on ’high for longer’. Obviously, it was and is too early for the central bank to close the door to further rate hikes entirely.’
Investors were also digesting PMI data. The UK economy edged back into growth territory in November.
The S&P Global/CIPS flash UK flash composite purchasing managers’ index rose to 50.1 points in November, from 48.7 in October. This marked a four-month-high and represents growth, edging above the no-change 50.0 mark.
The flash services PMI business activity index jumped to a four month high, registering 50.5 in November from 49.5 in October. Meanwhile, the flash manufacturing PMI rose to 47.9 from 44.3.
The pound was quoted at $1.2542 at the London equities close Thursday, higher compared to $1.2458 at the close on Wednesday. The euro stood at $1.0909 at the European equities close Thursday, up against $1.0864 at the same time on Wednesday. Against the yen, the dollar was trading at JP¥149.49, lower compared to JP¥149.72 late Wednesday.
In the FTSE 100, Intertek ended the day at the top of the index, up 3.3%.
The quality assurance service provider confirmed its annual outlook as it updated on its year-to-date trading.
The London-based quality assurance service provider said that in the ten months that ended on October 31, revenue increased 5.1% at actual rates and 7.3% at constant currency, to £2.77 billion from £2.63 billion for the same period in 2022.
Also amongst the strongest movers of the day were oil majors BP and Shell, up 1.4% and 1.3%, as oil prices recovered.
Oil prices recovered to above the $80 mark, after falling as a key ministerial meeting of the Organization of the Petroleum Exporting Countries and its allies was pushed back from Sunday to November 30.
Brent oil was quoted at $80.65 a barrel at midday in London on Thursday, up from $79.36 late Wednesday.
On the other side of the index, however, Vodafone fell 5.2%.
Vodafone said it will introduce a new technology for 5G mobile coverage in rural areas in Germany using up to 40% less power.
In the FTSE 250 index, Virgin Money UK lost 6.3%.
The banking and financial services firm said in the financial year ended September 30, net interest income rose to £1.69 billion from £1.58 billion a year before, while non-interest income was unchanged at £140 million. Net interest margin improved to 1.91% from 1.85%. However, pretax profit dropped to £345 million from £595 million, mostly due to higher credit impairment losses, which climbed to £309 million from £52 million.
It declared a final dividend of 2 pence, down from 7.5p a year before, bringing the annual total to 5.3p, just over half of the 10p payout in the prior year. Virgin Money also announced a further £150 million share buyback programme, which brings total shareholder distributions for the year to £272 million, up around 2% from the prior year.
Amongst London’s small-caps, Avon Protection rose 11%, after some directors bought shares.
Chief Executive Officer Jos Sclater bought £131,306 in shares, whilst Chief Financial Officer Rich Cashin bought £119,360 in shares.
On AIM, Jersey Oil & Gas rose 21%.
Jersey Oil & Gas is an upstream oil and gas company focused on the UK continental shelf region of the North Sea, while Serica Energy is a UK North Sea-focused oil and gas company.
It agreed to farm-out a 30% interest in the Greater Buchan Area licenses to Serica Energy UK Ltd, a subsidiary of Serica Energy.
‘We are thoroughly delighted to announce the farm-out transaction with Serica Energy. Not only does it bring a further high-quality partner into the joint venture, but it unlocks exceptional value for the company and delivers upon our overall objectives for the GBA farm-out strategy,’ said Jersey Oil Chief Executive Officer Andrew Benitz.
Gold was quoted at $1,992.02 an ounce at the London equities close Thursday, down against $1,993.04 at the close on Wednesday.
In Friday’s UK corporate calendar, there are no events scheduled. On Monday, there is a trading statement from Rightmove.
The economic calendar for has a UK consumer confidence survey overnight. Later in the day, there is a GDP reading for Germany, as well as the Ifo business climate index, followed by US PMI data.
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