Indices in London ended the session in the green on a mixed day for retailers on Black Friday as US equities pushed higher in a shortened trading session.
The FTSE 100 index rose 6.08 points, 0.1%, at 8,287.30. The FTSE 250 climbed 8.79 points, at 20,771.57, and the AIM All-Share firmed 1.58 points, 0.2%, at 732.49.
For the week, the FTSE 100 rose 0.3%, the FTSE 250 advanced 0.9% and the AIM All-Share ended flat.
The Cboe UK 100 ended up 0.1% at 832.44, the Cboe UK 250 added 0.2% at 18,275.37, and the Cboe Small Companies gained 0.3% to 15,833.67.
It was a bright picture in Europe, where the CAC 40 in Paris ended up 0.8%, while the DAX 40 in Frankfurt rose 1.0%.
A Eurostat estimate showed eurozone consumer price inflation picked up to 2.3% in November, in line with consensus, from 2.0% in October.
According to Eurostat, annual service price inflation eased to 3.9% this month from 4.0% in October. However, energy prices fell at a slower pace of 1.9% compared to 4.6%.
It is the last batch of inflation data before the next European Central Bank decision on December 12. The final data for November is released on December 18, so after the rate call.
XTB analyst Kathleen Brooks said hopes of a bumper half-point cut faded after the data. Nonetheless, the analyst still expects the central bank to enact a faster easing cycle than UK and US peers.
‘Overall, we do not see this inflation print as derailing ECB rate cuts. The ECB is expected to cut rates at a much faster pace than the US or the UK next year, and this is driving euro weakness. Interest rate differentials are driving the FX market right now, and the euro is in the firing line. Add in French political risk, and it is hard to see how the euro can make a meaningful recovery in the long term,’ Brooks added.
ING said: ‘With demand expected to remain weak, it doesn‘t look like the ECB should be overly concerned about the current uptick in inflation. While December is likely to come in high again when it comes to headline inflation, moderation can be expected for early next year.’
In New York, the Dow Jones Industrial Average was up 0.5%, the S&P was 0.6% higher and the Nasdaq climbed 0.7%.
US markets end a shortened trading day at 1800 GMT.
The pound was quoted at $1.2697 late on Friday afternoon in London, up from $1.2677 at the time of the European equities close on Thursday. The euro stood at $1.0579, up from $1.0549.
Against the yen, the dollar was trading at JP¥150.43, falling from JP¥151.50.
UBS said that after weeks of being dominated by US politics, investor attention will turn toward several important macro prints next week.
‘From job openings to nonfarm payrolls and the unemployment rate, markets will try to gauge whether the data is too strong for the Fed to cut rates in December as expected. In our view, it would take a strong beat for the US central bank to pause at next month’s meeting.’
In the UK there were signs of life in the housing market as mortgage approvals reached the highest level since the summer of 2022 last month.
According to Bank of England figures, some 68,300 mortgage approvals for house purchases were recorded in October, marking the highest monthly total since August 2022, when 72,200 mortgages got the green light.
Meanwhile, property website Zoopla predicted the number of houses sales will rise 5% over 2025, increasing to 1.15 million.
Across the UK, property values are expected by Zoopla to increase by 2.5% on average during 2025, based on certain assumptions around mortgage rates.
Housebuilders failed to take too much heart from the news posting modest gains. Persimmon rose 0.2%, Barratt Redrow 1.0% and Taylor Wimpey 0.8%.
Elsewhere, broker comments supported the best and worst performing stocks on the lead blue-chip index.
Anglo American rose 5.4% after Jefferies upgraded to ’buy’ from ’hold’, noting progress on its break-up plans is ‘encouraging’ so far.
‘There are still risks related to the timing and value capture associated with Anglo’s planned restructuring, especially in the case of De Beers, but we see value and potential positive catalysts in Anglo’s shares following the pullback from this past summer’s highs,’ the broker said in a note to clients.
But BAE Systems sank 4.8% after Bank of America downgraded to ’underperform’.
Retail was also in focus on Black Friday, a key day for the sector. Berenberg kicked off coverage of Next at ’buy’, but adopted a less bullish view of Marks & Spencer, beginning at ’hold’.
Next rose 2.2%, while M&S shed 0.4%.
Berenberg reinitiated athleisure retailer JD Sports at ’buy’, although its shares fell 1.2%.
JD was also in Berenberg’s top consumer picks for 2025, joined by value retailer B&M, card and gifts seller, Card Factory, electrical retailer Currys and home furnishings firm Dunelm.
B&M was 1.1% higher, Card Factory 3.4% higher, Currys 0.2% higher and Dunelm 0.9% higher.
In the FTSE 250, TI Fluid shares rose 1.9%. It accepted a £1.04 billion offer by Canadian automotive components maker ABC Technologies.
ABC, owned by affiliated funds of Apollo Global Management IX LP, will pay 200.0 pence in cash for each TI Fluid share, a 55% premium to the thermal management and fluid handling systems provider’s share price of 129.5p on September 13.
September 13 was the last trading day before TI Fluid entered an ‘offer period’.
The deal gives TI Fluid a £1.83 billion enterprise value, including debt.
Spire Healthcare shares rose 2.7%. The Economic Times in India reported Bangalore-based Narayana Health is sizing up acquiring a controlling stake in private hospital company Spire.
Narayana is in talks with shareholders in Spire to acquire the stale, The Economic Times reported, citing people ‘aware of the matter’.
AJ Bell’s Coatsworth added: ‘Spire has been a frustrating share to put it mildly, barely changing price since late 2021, which means investors might welcome the opportunity to sell out to Narayana if it’s paying a premium.’
Brent oil was quoted at $72.65 a barrel late Friday afternoon, down slightly from $72.74 at the time of the London equities close on Thursday. Gold firmed to $2,660.13 an ounce from $2,641.60.
Monday’s global economic diary sees a slew of manufacturing PMI data and eurozone unemployment figures.
Next week’s local corporate calendar sees half-year results from retailer Frasers, packaging firm DS Smith and housebuilder Berkeley Group.
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