Stock markets were trying to start the last week before Christmas on a positive note, with investors grasping at any encouraging signals from a thin set of macroeconomic and corporate news.
The FTSE 100 index was up 34.89 points, 0.5%, at 7,367.01. The FTSE 250 was uo 112.29 points, 0.6%, at 18,700.76, and the AIM All-Share was up 2.29 points, 0.3%, at 824.76.
The Cboe UK 100 was up 0.5% at 737.13, the Cboe UK 250 was up 0.6% at 16170.58, and the Cboe Small Companies was marginally higher at 12,790.25
‘US releases on consumer confidence on Wednesday and core inflation on Friday look the only scheduled announcements likely to shift the market’s mood this week, but after an unpredictable year it would be foolish to rule out one last big surprise before 2022 is out,’ said AJ Bell investment director Russ Mould.
Sterling was quoted at $1.2186 at midday in London on Monday, higher than $1.2161 at the London equities close on Friday. The euro traded at $1.0607, flat on $1.0601. Against the yen, the dollar was quoted at JP¥136.24, lower versus JP¥136.60.
In European equities on Monday, the CAC 40 in Paris was up 0.5%, while the DAX 40 in Frankfurt was up 0.4%.
German businesses are less pessimistic about the future and the present in the run-up to Christmas, according to a new survey.
The latest Ifo business climate index rose to 88.6 points in December, from 86.3 in November. This was ahead of FXStreet-cited consensus of 87.2.
German firms’ assessments of the current situation also improved, with the tracker rising to 94.4 points this month from 93.1 points in November. The expectations tracker also rose to 83.2 points from 80 last month.
‘At the end of what has once again been a challenging year for the German economy, hope has returned: hope that the economy might even avoid a winter recession or at least hope that it will only be a mild one. Indeed, implemented and announced government fiscal stimulus packages and the lockdown-related backlogs have prevented the economy from falling off a cliff,’ ING analysts said.
‘At the same time, however, the cold winter spell of the last days has shown how quickly filled national gas reserves and gas consumption reductions can disappear again.’
Stocks in New York were called higher. The Dow Jones Industrial Average is called up 0.3%, the S&P 500 index up 0.4%, and the Nasdaq Composite up 0.5%.
Tesla was trading 2.8% higher in the New York pre-market, the shares having lost more than a third of their value in the past six months.
The electric vehicle firm’s boss, Elon Musk, looks set to step down from the top job at Twitter after just two months, if he respects the results of an online poll launched on Sunday night, as he has vowed to.
‘Should I step down as head of Twitter? I will abide by the results of this poll,’ he tweeted, along with the options ‘Yes’ or ‘No’.
Around 58% of 17.5 million voters had said that Musk should resign as Twitter chief executive.
‘Given how much of a distraction Musk’s tenure at Twitter has become, shareholders in the electric vehicle manufacturer will be breathing a big sigh of relief if he steps back from Twitter and gets back to the day job at Tesla,’ AJ Bell’s Mould commented.
Back in London, oil majors were still performing well by midday. BP was up 2.7%, Shell up 2.6%, Harbour Energy up 1.9%, and Tullow Oil up 3.4%.
Brent oil fetched $79.65 a barrel on Monday, up from $78.82 late Friday
London Stock Exchange Group shed 1.4%, as Credit Suisse cut the stock’s price target
Mondi was 0.4% lower. The paper and packaging maker said it has approved ‘science-based net-zero targets’ as it intensified efforts to cut harmful gas emissions from its operations and value chain.
Mondi committed to reducing absolute scope one and two gas emissions by 46% in the near-term and scope three emissions by 28% by 2030. The long-term target is to reduce absolute scope one, two and three emissions by 90% by 2050.
Mondi said it had already made significant progress, achieving a 46% reduction of its specific emissions to 2021 against its initial 2004 baseline.
Packaging peer DS Smith was up 1.5%.
On AIM, LBG Media was up 17%.
The Ladbible-owner said it expects annual revenue of £63 million in 2022, and adjusted earnings before interest, tax, depreciation, and amortisation of £16 million. In 2021, LBG posted revenue of £54.5 million and adjusted Ebitda of £16.8 million.
‘Given the momentum seen in [the second half], and cost reduction exercise completed in November 2022, management is confident about the outlook for continued growth in 2023,’ LBG said.
‘This growth against a more difficult macroeconomic backdrop is indicative of the strong appeal LBG’s proposition has to advertisers and audience alike,’ Liberum considered.
Gold was quoted at $1,795.09 an ounce on Monday in London, up from $1,789.21 late on Friday.
By Elizabeth Winter, Alliance News senior markets reporter
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