Stock prices in London were just about in the green at midday, outperforming Paris and Frankfurt, where shares succumbed to French budget concerns and worries that the European economy could be next to fall into the cross-hairs of Donald Trump tariffs.
The FTSE 100 index added 4.24 points, 0.1%, at 8,262.85 heading into Wednesday afternoon. The FTSE 250 rose 15.49 points, 0.1%, at 20,584.14, and the AIM All-Share added 1.29 points, 0.2%, at 731.88.
The Cboe UK 100 was flat at 830.61, the Cboe UK 250 down marginally at 18,046.38, and the Cboe Small Companies was also fractionally lower at 15,657.39.
The CAC 40 in Paris slumped 1.2%, and the DAX 40 in Frankfurt fell 0.7%.
Automakers in Europe continued to struggle, on worries concerning Trump’s tariff rhetoric, while French banks struggled on budget worries in France.
In Paris, lenders Societe Generale and Credit Agricole shed 4.3% and 2.6%. In Frankfurt, BMW lost 1.4%, while Volkswagen fell 0.6%.
Analysts at UBS commented: ‘President-elect Donald Trump on Monday vowed to issue executive orders imposing new punitive tariffs on all imports from Mexico, Canada, and China on the first day of his presidency. Posting on social media, Trump said he would target Canada and Mexico with a 25% tariff, and China with a 10% tariff ’above any additional tariffs,’ until the three countries address complaints over illegal migration and drug trafficking.
‘This early proposal from President-elect Trump may prompt investors to consider risk outcomes for trade, including the potential for large, blanket tariffs imposed on imports from multiple countries. At a minimum, a return to US diplomacy by social media posts and tariffs suggests a new period of heightened cross-asset volatility may be ahead. While we remain alert to new tariff risks, we keep our constructive stance on global equities, and on US stocks in particular.’
The pound was quoted at $1.2603 early Wednesday afternoon, rising from $1.2548 late Tuesday. The euro stood at $1.0517, up from $1.0475. Against the yen, the dollar was trading at JP¥151.52, slumping from JP¥153.52.
The personal consumption expenditures reading for October is among a US data dump released at 1330 GMT. There is also gross domestic product data, initial jobless claims and durable goods orders.
The core PCE index is the Fed’s preferred inflation gauge. Core PCE prices are expected to have picked up 2.8% on-year last month, accelerating from 2.7% in September, according to FXStreet cited consensus.
SPI Asset Management analyst Stephen Innes commented: ‘While the broader market has shifted attention away from US inflation obsession, a persistent high reading could revive doubts about the Federal Reserve’s decision to cut rates in December.’
Before the US data, stocks in New York are called to open lower. The Dow Jones Industrial Average is called marginally lower, the S&P 500 down 0.2% and the Nasdaq Composite 0.3% lower.
In London, Just Eat Takeaway.com fell 1.3%. It said it plans to call time on its London listing, soon after having sold its US business.
The Amsterdam-based food delivery firm is a former FTSE 100 index constituent, but it was removed from FTSE indices in late 2021, after its nationality was reassigned to the Netherlands by index provider FTSE Russell. Then at the end of 2022, Just Eat switched to a standard listing in London from a premium one, making the London Stock Exchange a secondary listing. Its primary listing is on Euronext Amsterdam.
On Wednesday, Just Eat said it ‘has recommenced and continued its review to determine optimal listing venues’.
‘As part of this review, the company has considered, amongst other things, the liquidity and trading volumes, as well as cost and administrative requirements related to its primary listing in Amsterdam and secondary listing in London,’ Just Eat explained.
Just Eat, formed out of a tie-up between Just Eat of the UK and Takeaway.com of the Netherlands in 2020, said the delisting is likely to take effect next month, with the final day of trading in London on December 24.
AJ Bell analyst Dan Coatsworth commented: ‘Changes to the UK listing rules were meant to make the London Stock Exchange more attractive, drive up the number of flotations and stop the flow of companies leaving the market. So far, it’s too early to make any judgment whether those changes have been a success. It can take six months to prepare for an IPO which implies a greater volume of flotations won’t emerge until the new year.
‘The changes are more beneficial to companies that are only listed in London and which previously didn’t qualify for the FTSE indices under the old rules because they had chosen a tier-two category for various reasons such as looser regulation. Under the new system, they can move to the ESCC listing category in a bid to qualify for the indices. For example, Deliveroo has already switched from a second-class listing under the old system to the new ESCC category and it is now primed to join the FTSE 250 at next month’s quarterly index reshuffle. Coca-Cola Europacific Partners and Oxford Nanopore are next in line, with the Coca-Cola bottling company expected to join the FTSE 100 and the science expert eyeing the FTSE 250, both at the March 2025 reshuffle.
The analyst continued: ’If anything, we’re likely to see more companies in Just Eat’s situation think hard about the need to have secondary listings in London if their primary listing on another exchange is functioning well and they are looking for ways to cut costs. If trading is thin in London, it’s hard to justify the costs of retaining the listing.‘
Pets At Home fell 13%, the worst mid-cap performer, as it has grappled with a ’subdued market‘, though it noted it outperformed.
In the half-year to October 10, revenue rose 1.9% on-year to £789.1 million from £774.2 million. Pretax profit improved 47% to £51.1 million from £34.7 million.
‘However, we are operating in an unusually subdued pet retail market which we now expect to continue through H2. We are confident this will be temporary, and growth will return to historical norms with the longer-term attractive outlook for the UK pet care market unchanged,’ the pet care retailer said.
It now expects underlying pretax profit to grow ‘modestly’ in the full-year. In August, it predicted an outcome in line with consensus at the time of £144 million, which would have represented growth of 5.6%.
Aston Martin Lagonda said it had raised around £211 million to fund future growth, including its electrification strategy. Shares fell 5.1%.
The Gaydon, Warwickshire-based luxury carmaker confirmed it had raised £111 million via a placing at 100.00 pence per share, a 7.3% discount to Tuesday’s closing price of 107.90p.
Leading shareholder Yew Tree Overseas Ltd subscribed for £50.5 million worth of stock through the placing. The Yew Tree consortium is led by Aston Martin Executive Chair Lawrence Stroll.
In addition, Aston Martin raised £100 million through the private placement of additional senior secured notes, which attracted strong support from bond holders.
A separate retail offer raised just under £1.3 million, the firm added.
Aston Martin said proceeds will provide ‘increased financial resilience and strength’ as the company maximises the potential of its next-generation models.
Funds will support capital investments related to the electrification strategy, consistent with Aston Martin’s plans to invest around £2 billion over the five-year period between 2023 and 2027.
It also plans to use the proceeds to repay the borrowings under its existing super senior revolving credit facility, to pay fees and expenses, and for general corporate purposes.
Chief Executive Adrian Hallmark thanked investors ‘who continue to show strong support for the company’.
Aston Martin announced the fundraise after the London market close on Tuesday.
In a statement, the firm trimmed earnings guidance to reflect the delayed delivery of some Valiant models.
The luxury carmaker expects full-year adjusted earnings before interest, tax, depreciation and amortisation between £270 to £280 million.
It had previously forecast adjusted Ebitda to be ‘slightly below’ the £305.9 million it achieved last year. This guidance was cut in September.
Citi put the consensus before Tuesday’s announcement at £290 million.
Racing higher, however, Motorpoint surged 13%. The vehicle retailer reported a swing to half-year profit, despite a revenue decline. It also noted an improving market backdrop, with ‘macroeconomic pressures to generally ease’.
Pretax profit in the six months to September 30 totalled £2.0 million, swinging from a loss of £4.7 million a year prior. Revenue fell 7.3% to £563.1 million from £607.2 million.
Motorpoint said ‘strong momentum has continued’ into the second-half.
Brent oil was quoted at $72.60 a barrel early Wednesday afternoon, weakening from $73.42 at the time of the London equities close on Tuesday. Gold climbed to $2,649.77 an ounce, from $2,629.43.
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