The FTSE 100 index closed up on Thursday, with AstraZeneca shares rising on US FDA approval of its Imfinzi treatment.
Also on Thursday, UK Prime Minister Keir Starmer promised a ‘relentless focus on delivering for working people’ ahead of a major speech setting out targets to measure progress on his government’s plans.
AJ Bell’s Danni Hewson noted: ‘The prime minister today said that households will know when they‘re better off and the deliberate shift away from a previous promise to have the highest economic growth in the G7 will certainly make it easier to explain to UK voters.’
However, Hewson countered: ‘The real question will be how many of us should feel better off and by how much. Falling inflation will help, assuming the increase in National Insurance for employers doesn’t structurally change the economic picture.’
Noting that many would-be homeowners remain ‘frozen out from buying in the area they want to live in’, and that clean energy goals were ‘watered down’, she commented: ‘Labour’s first months in office haven’t exactly made people feel better about anything. We were warned things would have to get worse first before they get better, but Labour ran on a message of change during the election and this reset ultimately feels the same, just not quite as ambitious.’
French Prime Minister Michel Barnier has met President Emmanuel Macron to submit his resignation after losing a vote of no confidence in parliament, AFP reported.
A majority of lawmakers on Wednesday supported the no-confidence vote, proposed by the hard left and backed by the far right with both sides angered by Barnier’s 2025 budget plan. The successful no-confidence motion cancelled the government’s entire financing plan, unless any new government can somehow rush through approval of a new budget by Christmas – an unlikely scenario.
Meanwhile in the US, weekly initial jobless claims picked up in the week ending November 30 by more than expected, the Department of Labor reported. The advance figure for seasonally adjusted initial claims was 224,000, up from 215,000 the week before.
The four-week moving average was 218,250, up from the previous week’s revised average of 217,500.
Elsewhere, figures from the Census Bureau and the Bureau of Economic Analysis showed that the goods and services deficit was $73.8 billion in October, down from $83.8 billion in September.
The FTSE 100 index closed up 13.57 points, 0.2%, at 8,349.38. The FTSE 250 ended down 4.09 points at 21,001.06, and the AIM All-Share closed down 0.2%, or 1.56 points, at 736.66.
The Cboe UK 100 ended up 0.2% at 838.70, the Cboe UK 250 closed down 0.1% at 18,484.11, and the Cboe Small Companies ended up 0.4% at 16,085.35.
On the FTSE 100, AstraZeneca finished up 1.3%.
The Cambridge-based pharmaceuticals company said the US Food & Drug Administration has approved its Imfinzi treatment for adults with limited-stage small cell lung cancer.
Imfinzi reduced the risk of death by 27% compared to a placebo in the Adriatic phase 3 trial.
Vodafone was one of its winners, up 2.6%.
The UK competition watchdog approved the merger of Vodafone’s UK operations with Hutchison 3G UK, trading as Three UK, creating a telecommunications behemoth.
To secure approval for the £15 billion merger, the two companies have committed to an £11 billion investment programme to build ‘the UK’s biggest and best network’, with advanced 5G provision.
DS Smith was among the losers, down 1.6%.
The London-based packaging company labelled its performance as ‘solid’, but pretax profit plunged 89% on-year to £29 million in the six months that ended October 31. Revenue fell 4.2% to £3.37 billion, driven by lower packaging prices and paper market weakness.
On AIM, Warpaint London was up 2.7% while Brand Arkitekts surged 93%.
Warpaint announced that Brand Arkitekts had agreed to its £13.9 million or 48 pence per share all-cash acquisition bid. Brand Arkitekts’ directors unanimously recommended the offer, which is double the company’s 24p share price at Wednesday’s market close.
In small-caps, Card Factory gained 7.9%.
The Wakefield, England-based greeting cards and gifting retailer announced its $25 million takeover of Garven Holdings LLC, a Minnesota gift and ‘celebration essentials’ designer and wholesaler which trades as Garven Design and Cadence Packaging.
‘After months of UK-listed companies receiving takeover bids, it’s refreshing to see two companies sitting on the other side of the table,’ AJ Bell’s Dan Coatsworth said, although he remarked that Brand Architekts ‘was so far under the radar of the general investment community that very few people will lament its absence from the stock market. However, it’s a strategically important deal for Warpaint as it provides a low-risk way of boosting its health, beauty and personal card brand portfolio.’
Meanwhile, the Garven takeover is ‘the next step in Card Factory’s efforts to diversify its income stream beyond the sale of cheap greetings cards.
‘Its UK stores have slowly given more shelf space to items like balloons and teddy bears, and now there is an opportunity to learn more about this market from an established US player. It will also open doors to potential design and buying synergies across the group.’
In European equities on Thursday, the CAC 40 in Paris ended up 0.4%, while the DAX 40 in Frankfurt ended up 0.6%.
Construction activity declined at a faster pace to 42.7 points in November, as Germany’s drag deteriorated amid increased construction costs. Meanwhile, eurozone retail sales grew by 1.9% annually in October from a year before, but declined by 0.5% on-month.
The pound was quoted higher at $1.2753 at the London equities close Thursday, compared to $1.2717 at the close on Wednesday.
The euro stood at $1.0568 at the European equities close Thursday, up against $1.0536 at the same time on Wednesday.
Against the yen, the dollar was trading higher at JP¥150.17 compared to JP¥150.06 late Wednesday.
Stocks in New York were mostly lower at the London equities close, with the DJIA down 0.3%, the S&P 500 index down 0.1%, and the Nasdaq Composite up 0.1%.
US weekly initial jobless claims picked up in the most recent week, and by more than expected, the Department of Labor reported.
In the week ending November 30, the advance figure for seasonally adjusted initial claims was 224,000, an increase of 9,000 from the previous week’s revised level. The previous week’s level was revised up from 213,000 to 215,000. FXStreet consensus forecast a figure of 215,000.
Elsewhere, figures from the Census Bureau and the Bureau of Economic Analysis showed that the goods and services deficit was $73.8 billion in October. FXStreet consensus forecast a fall to $75 billion. October exports were $265.7 billion, $4.3 billion less than September exports. October imports were $339.6 billion, $14.3 billion less than September imports.
Brent oil was quoted at $72.22 a barrel at the London equities close Thursday, ahead of an Opec+ meeting, from $73.20 late Wednesday.
Gold was quoted at $2,635.39 an ounce at the London equities close on Thursday, against $2,653.48 at the close on Wednesday.
Friday’s UK corporate calendar has half-year results from Berkeley Group Holdings, and full-year results from Schroder European Real Estate Investment Trust.
The economic calendar for Friday has the aforementioned non-farm payrolls data from the US, as well as the Michigan consumer sentiment index and total vehicle sales.
Also, look out for the UK house price index and the eurozone’s GDP and unemployment figures.
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