London’s blue chip FTSE 100 sneaked into the green before the close of play on Thursday, following European peers higher, boosted by an upbeat start to trading in the US.
The FTSE 100 index rose 8.63 points, or 0.1%, at 7,601.85. The FTSE 250 fell 121.55 points, or 0.7%, at 18,098.68, and the AIM All-Share fell 3.55 points, or 0.5%, at 724.98.
The Cboe UK 100 rose 0.2% to 758.70, the Cboe UK 250 closed down 0.6% at 15,768.57, and the Cboe Small Companies fell 0.7% at 13,370.00.
After languishing for much of the session, stocks found the energy to push higher, after a robust growth reading across the pond boosted hopes of an economic soft landing in the US, although gains in London fell short of those seen elsewhere in Europe. The FTSE 100 had outperformed its peers in Europe so far this week heading into Thursday’s session, however.
In European equities on Thursday, the CAC 40 in Paris rose 0.6%, while the DAX 40 in Frankfurt climbed 0.7%.
Stocks in New York were higher. The Dow Jones Industrial Average was up 0.5%, while the S&P 500 index and Nasdaq Composite each added 0.7%.
The pound was quoted at $1.2209 late Thursday in London, higher compared to $1.2140 at the close on Wednesday. A stronger pound puts pressure on the FTSE 100, which is stacked with international earners.
The euro also advanced against the dollar, despite a tamer German inflation reading taking some sting out of European Central Bank interest rate expectations. The euro stood at $1.0568, higher against $1.0517.
Germany’s consumer price inflation rate cooled to its tamest since February 2022, numbers from Destatis showed on Thursday.
The consumer price index rose by 4.5% in September from a year before, according to a preliminary reading, slowing from a 6.1% annual increase in August. CPI inflation had been expected to cool by slightly less, to 4.6%, according to market consensus cited by FXStreet.
‘This is the lowest value since the outbreak of war in Ukraine. Most recently, the inflation rate in February 2022 was 4.3%, lower than in the current month,’ Destatis said.
Against the yen, the dollar was trading at JP¥149.36, slightly lower compared to JP¥149.42.
In London, Barratt, Phoenix Group and M&G were among the worst FTSE 100 performers, down 7.3%, 6.7% and 3.5%. The trio went ex-dividend, meaning new buyers no longer qualify for the latest payout.
In the FTSE 250, Digital 9 Infrastructure plunged 40%.
The company, which invests in assets such as data centres, subsea fibre cables, and mobile phone masts, withdrew its dividend target as it turned to an interim loss, citing soft UK consumer confidence and high inflation.
Digital 9 Infrastructure’s net asset value on June 30 was 100.13 pence per share, down from 109.76p on December 31 and from 105.13p a year prior. Its NAV total return for the six months was negative 11.2%, compared to positive 10.7% a year before.
‘The period has been characterised by a continued challenging macroeconomic backdrop across major developed economies, with rising inflation and interest rates resulting in continued uncertainty for the capital markets. That same difficult macroeconomic environment has continued to impact the company’s liquidity and sustainable balance sheet management,’ the company said.
Renewi closed up 31% at 665.91 pence after Macquarie Asset Management said it is considering making a takeover offer for the firm worth £636 million.
Milton Keynes-based Renewi turns waste into recycled products. Macquarie Asset Management is part of Sydney-based financial services firm Macquarie Group.
Macquarie said the offer would be by one or more of its managed funds. It said that on Monday it had proposed to the Renewi board an offer of 775p per share in cash. This was rejected, Macquarie said.
Renewi later Thursday confirmed it had rejected the offer, calling it ‘an unsolicited and highly conditional non-binding proposal’. Renewi said its board considered the proposal ‘in detail’ and believes it ‘fundamentally undervalues the value of Renewi and its prospects’.
Also jumping, Vast Resources surged 64%. It said strike action by mine workers at its Baita Plai polymetallic asset in Romania has ended.
Vast Resources last week Friday had noted that some Romanian press outlets have reported strike action by mine workers at its Baita Plai mine.
‘The strike action, which was undertaken illegally, was reported from the mine and coordinated by a small number of individuals,’ Vast Resources said at time.
‘The majority of the workforce remain supportive of the company and continue to perform their duties on site without impediment; as such the impact on operations at Baita Plai is expected to be minimal.’
The company said on Thursday ‘that the protest has ended and operations continue as normal at Baita Plai’.
Brent oil was quoted at $94.09 a barrel in London on Thursday, down from $95.52 at the London equities close on Wednesday.
Gold was quoted at $1,861.02 an ounce late Thursday, lower against $1,880.42 on Wednesday.
Friday’s economic calendar has a eurozone inflation reading at 1000 BST, after UK gross domestic product data at 0700 BST.
The local corporate calendar has third-quarter results from cruise ship operator Carnival.
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