Blue-chips in Europe traded slightly lower in a tepid open on Friday, ahead of eurozone data later and an abbreviated session in New York.
The FTSE 100 index fell 8.73 points, 0.1%, at 8,272.49. It is up some 2.0% so far this month.
The FTSE 250 rose 32.01 points, 0.2%, at 20,794.79, and the AIM All-Share added 0.94 of a point, 0.1%, at 731.85.
The Cboe UK 100 was down 0.1% at 831.08, the Cboe UK 250 added 0.3% at 18,302.17, and the Cboe Small Companies rose 0.2% at 15,821.92.
The CAC 40 in Paris was down 0.2%, and the DAX 40 in Frankfurt slipped 0.1%.
Eurozone consumer price inflation data is reported at 1000 GMT.
With markets somewhat divided between whether the European Central Bank cuts by 25 or 50 basis points next month, a softer than expected reading later this morning could strengthen the case for the latter.
According to consensus cited by FXStreet, the rate of consumer price inflation in the single currency area is expected to have accelerated to 2.3% in November, from 2.0% in October.
‘A softer-than-expected read will certainly keep the ECB doves in charge of the market and cap the euro appetite limited into the 1.06 psychological level, while a stronger-than-expected number should encourage the euro bulls to push for a further recovery,’ Swissquote analyst Ipek Ozkardeskaya commented.
‘Speaking of inflation, inflation in Tokyo came in stronger than expected in November.
Markets in New York re-open for an abbreviated session on Friday. Traders focused on Tokyo inflation that backed the growing expectation that the Bank of Japan would hike rates in the December meeting. As such, the rise of the hawkish BoJ expectations shortly pushed the USDJPY below the 150 mark. I believe that a sustainable move below this level is possible, if the BoJ goes ahead and hikes rates in its December 18-19 meeting.’
The pound was quoted at $1.2714 early Friday, up from $1.2677 at the time of the London equities close on Thursday. The euro stood at $1.0570, rising from $1.0549. Against the yen, the dollar was trading at JP¥150.11, falling from JP¥151.50.
In China, the Shanghai Composite rose 0.9%, the Hang Seng Index in Hong Kong traded 0.3% higher. The Nikkei 225 in Tokyo fell 0.4%, while the S&P/ASX 200 lost 0.1%.
In London, M&A developments once again provided a spark.
Spire Healthcare shares rose 9.8%. The Economic Times in India reported Bangalore-based Narayana Health is sizing up acquiring a controlling stake in private hospital company Spire.
Narayana is in talks with shareholders in Spire to acquire the stale, The Economic Times reported, citing people ‘aware of the matter’.
TI Fluid shares rose 1.9%. It accepted a £1.04 billion offer by Canadian automotive components maker ABC Technologies.
ABC, owned by affiliated funds of Apollo Global Management IX LP, will pay 200.0 pence in cash for each TI Fluid share, a 55% premium to the thermal management and fluid handling systems provider’s share price of 129.5p on September 13.
September 13 was the last trading day before TI Fluid entered an ‘offer period’.
The deal gives TI Fluid a £1.83 billion enterprise value, including debt.
In September, TI Fluid rejected two approaches from ABC Technologies, worth 165p and 176p per share respectively.
In October, the firm said it was ‘minded to recommend’ a 200p per share offer, after spurning two further proposals at 188p and 198p per share respectively.
The Oxford, England-based maker of thermal management and fluid handling systems, noted the significant disruption currently affecting the global automotive industry, and the adverse impacts on some of its larger European customers.
Against this backdrop, TI Fluid thinks it will be ‘more challenging’ to achieve its financial objectives in the near term.
TI Fluid said it also believed its long-term potential has not, over time, been entirely reflected in the share price and market valuation.
TI Fluid Chair Tim Cobbold said. ‘The combination will result in a larger, more diversified business with a broader range of products and customers, better positioned to navigate the current challenges facing the automotive industry and deliver sustainable long-term growth.’
Miner Anglo American and engineering firm Imi each rose 2.8%. Jefferies raised Anglo to ’buy’, while Bank of America did the same for Imi.
Also on the up, 888 and William Hill owner Evoke climbed 3.5%. JPMorgan placed it on ’positive catalyst watch’.
Elsewhere in London, Peel Hunt fell 2.1%. It reported a swing to half-year profit, but noted UK budget and US election uncertainty hit recent trading.
The broker said it achieved pretax profit of £1.2 million in the six months to September 30, swinging from a loss of £773,000 a year prior. Revenue rose 26% to £53.8 million from £42.7 million.
The first half was aided by ‘a more positive macroeconomic backdrop’. Investment Banking revenue surged 31% on-year to £22.6 million.
‘We saw improved performance in our core equity capital markets business, particularly in the first quarter of FY25, where we acted as joint global coordinator on a Main Market IPO and nominated adviser and sole bookrunner on an AIM IPO,’ it explained.
Research & Distribution revenue rose 30% to £13.6 million, ‘despite continued outflows from UK equities’.
Execution Services was up 19% to £17.6 million.
Peel explained: ‘Trading volumes increased across Execution Services in the first four months of FY25 but slowed towards the end of H1 given uncertainty around the outcomes of the UK budget, particularly concerns about the withdrawal of inheritance tax relief on AIM companies, and the US election.’
Peel said trading in the first few weeks of the second half has been ‘in line with management expectations’.
Brent oil was quoted at $72.41 a barrel early Friday, down from $72.74 at the time of the London equities close on Thursday. Gold climbed to $2,657.33 an ounce, from $2,641.60.
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