The FTSE 100 achieved an unconvincing gain in early dealings, though stocks in mainland Europe rose with more conviction, with the CAC 40 shaking off political uncertainty in France.
The FTSE 100 index added 5.59 points, 0.1%, at 8,341.40. The FTSE 250 rose 18.18 points, 0.1%, at 21,023.33, and the AIM All-Share fell just 0.32 of a point at 737.90.
The Cboe UK 100 added 0.1% at 837.71, the Cboe UK 250 was up 0.2% at 18,541.46, and the Cboe Small Companies rose 0.1% to 16,025.48.
The CAC 40 in Paris added 0.6% in early dealings, though it was initially lower in the opening minutes after the bell. The DAX 40 in Frankfurt rose 0.3%.
The pound was quoted at $1.2730 early Thursday, up from $1.2717 at the time of the London equities close on Wednesday. The euro was flat at $1.0536. Against the yen, the dollar was trading at JP¥150.07, flat from JP¥150.06.
French President Emmanuel Macron on Thursday will seek ways out of France’s political crisis, after Michel Barnier became the first prime minister to be ousted by parliament in over six decades.
Lawmakers voted on Wednesday to oust Barnier’s government after just three months in office, approving a no-confidence motion proposed by the hard left but which crucially was backed by the far right headed by Marine Le Pen.
Barnier’s record-quick ejection comes after snap parliamentary elections this summer, which resulted in a hung parliament with no party having an overall majority and the far right holding the key to the government’s survival.
Macron now has the unenviable task of picking a viable successor with over two years of his presidential term left, with some – though not all – opponents calling on him to resign.
‘Politics provides the drama for now, but even here the collapse of the French government late yesterday had already been anticipated with EURUSD more sensitive to a surprisingly weak US services ISM report than it was to a vote of no confidence in Barnier‘s administration,’ analysts at Lloyds Bank commented.
The ISM data followed a softer-than-expected ADP jobs report. Private sector employment rose by 146,000 jobs in November, ADP said, easing from 184,000 in October. October’s reading was downwardly revised from 233,000.
The latest reading fell short of the FXStreet cited consensus of 150,000.
Lloyds analysts added: ‘The election has been another contributing factor to uncertainty. That should have more of a bearing on smaller firms, and hiring has been weak in that area too. Based in the improvement in expectations (confidence and hiring) contained within the latest Fed business surveys (and PMIs) one would expect to see some pick-up ahead though. Looking at the rolling averages adds to confidence that things have stabilised at more normal levels, with the 12-month average flat since early summer. Given how Trump’s return has boosted overall sentiment that could prove the floor.’
In Asia, stocks were mixed. The Shanghai Composite was down 0.1% in China. The Hang Seng Index in Hong Kong weakened 1.2%. Over in Tokyo, the Nikkei 225 added 0.2%, as did the S&P/ASX 200 in Sydney.
US stocks achieved record highs again. The Dow Jones Industrial Average added 0.7% on Wednesday. The S&P 500 added 0.6% and the Nasdaq Composite jumped 1.3%.
In London, Frasers tumbled 13% as it cautioned on profit amid weaker consumer confidence pre- and post-UK budget.
The Sports Direct owner now predicts full-year adjusted pretax profit in the range of £550 million and £600 million. It had previously expected an outcome between £575 million and £625 million.
Among the FTSE 250s, Future, the online magazine publisher and owner of price comparison website Go Compare, jumped 13%.
It reported weaker annual earnings, but hailed a return to revenue growth in the second half.
In the year to September 30, revenue was largely flat at £788.2 million from £788.9 million. Pretax profit weakened 25% to £103.2 million from £138.1 million.
‘Our return to revenue growth in H2, driven by the execution of [growth acceleration strategy], puts the group in a good position to achieve current market expectations for FY 2025,’ the firm added.
It maintained its final dividend at 3.4 pence per share. A £55 million new share buyback kicks off next month.
Brand Architekts jumped 90% as it agreed to be taken over by fellow London listing Warpaint in a £13.9 million deal.
The colour cosmetics supplier, that owns W7 and Technic brands, will pay 48 pence in cash per Brand Architekts share. It is double the beauty sector challenger brand’s Wednesday closing price of 24p.
It values its entire issued, and to be issued, ordinary share capital at around £13.9 million.
‘The Warpaint board considers that Brand Architekts provides a similar opportunity as its previous acquisitions, and that the acquisition will enhance Brand Architekts’ proposition and profitability as part of a larger, successful health, beauty and personal care business,’ a statement said.
Warpaint’s bid has the backing of Peter Gyllenhammar, who owns around a quarter of Brand Architekts.
Brand Architekts Chair Roger McDowell said: ‘The Brand Architekts board has worked hard to deliver on the Brand Architekts Group’s strategic priorities against a challenging environment and continues to have confidence in its brands and longer-term prospects. However, the Brand Architekts board recognises the certainty of value of the cash offer at a 100% premium to the current share price, against the backdrop of an uncertain macro-economic environment.’
Warpaint, meanwhile, proposed a placing to raise £14 million, with a retail offer to net another £1 million. The placing is for 2.7 million new shares at a price of 510p each. The retail offer will be for 196,078 new shares at the same price.
‘Warpaint proposes to use the net proceeds of the placing to repay the bridging loans which have been used to fund the maximum cash consideration payable by the company pursuant to the acquisition,’ it said.
Warpaint expects annual results in line with expectations. It has seen ‘continued strong momentum’ since mid-September.
Warpaint shares rose 2.6%.
Brent oil was quoted at $72.46 a barrel early Thursday, down markedly from $73.20 at the time of the London equities close on Wednesday. Gold fell to $2,646.12 an ounce from $2,653.48.
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