Stocks were trading lower as the week drew to a close, as Russia’s assault on Ukraine showed no signs of let-up and hopes for peace talks dimmed.
The FTSE 100 index was down 14.91 points, or 0.2%, at 7,370.43 early Friday. The mid-cap FTSE 250 index was up 8.46 points at 20,984.15. The AIM All-Share index was up 0.44 of a point at 1,025.77.
The Cboe UK 100 index was down 0.2% at 732.41. The Cboe 250 was flat at 18,534.65, and the Cboe Small Companies up 0.2% at 14,701.28.
In mainland Europe, the CAC 40 stock index in Paris was down 0.4% while the DAX 40 in Frankfurt was 0.3% lower.
US Secretary of State Antony Blinken said Russia was not making serious efforts in negotiations with Ukraine to end the three-week war.
‘On the one hand, we commend Ukraine for being at the table despite being under bombardment every minute of the day,’ Blinken said. ‘At the same time, I have not seen any meaningful efforts by Russia to bring this war that it is perpetrating to a conclusion through diplomacy.’
Rescue workers searched desperately for any survivors buried beneath the rubble of Mariupol’s bombed-out theatre Friday, as Russia’s forces pounded residential areas across Ukraine, stoking allegations of war crimes.
Twenty-four hours after Mariupol’s once-gleaming whitewashed theatre was hollowed out by a Russian strike, the number of dead, injured or trapped is still unclear.
In a call later Friday, US President Joe Biden is set to warn his counterpart Xi Jinping that Beijing will face ‘costs’ for ‘any actions it takes to support Russia’s aggression’, according to US Secretary of State Antony Blinken.
In the wake of the theatre attack, Blinken also said it was ‘difficult to conclude’ that Vladimir Putin’s regime had not engaged in war crimes by targeting civilians.
Russian forces hit areas near Lviv’s airport in western Ukraine on Friday morning, according to mayor Andriy Sadovy and witnesses. The airport itself was not directly struck, but an aircraft repair facility was destroyed, he wrote on Telegram. No casualties were initially reported.
Lviv is about 80 kilometres from the border with Poland, a member of NATO and the EU.
In the FTSE 100, Polymetal International was the best performers, up 5.8%. The Russian gold miner said it has appointed four new independent non-executive directors to its board after six non-execs resigned last week.
In the FTSE 250, Softcat was up 3.0% after Berenberg upgraded the IT infrastructure services provider to ‘buy’ from ‘hold’.
Conversely, Investec was down 2.7%. The Anglo-South African financial services company lifted its full-year earnings guidance as top-line growth continued to gain traction and impairment charges dropped significantly.
Investec expects its adjusted earnings per share to range between 51 pence and 55p for the financial year ending March 31, up sharply from 28.9p in the prior year. The group in November had forecast an increase to between 48p and 53p.
Thanks to net inflows of £2.0 billion and positive market conditions, Investec said its Wealth & Investment business boosted funds under management by 6.6% year-on-year to £61.9 billion for the 11 months ended February 28.
It warned though that the current market volatility may hit funds under management at March 31.
JD Wetherspoon was down 0.3% after the pub chain reported a narrowed interim loss, but said sales are yet to return to pre-pandemic levels.
Revenue for the half-year that ended January 23 came in at £807.4 million, nearly double the £431.1 million posted a year before. However, sales remain below the £933.0 million achieved two years ago, a pre-pandemic period.
Wetherspoon’s pretax loss narrowed to £21.3 million from £46.2 million a year ago, but the bottom line remains far off the profit of £57.9 million registered two years ago.
Commenting on the results, Shore Capital said ‘there is some chink of light with regards to current trading, although the building squeeze on household incomes is a clear concern as the year progresses’.
Elsewhere in London, Ted Baker was up 16% after Sycamore Partners Management confirmed a Sky News press report that it was in early stages of considering making a possible cash offer for the fashion retailer.
Sycamore Partners said it was considering a possible cash offer for Ted Baker but noted there was no certainty any offer would be made.
In response, Ted Baker confirmed that it had not received any approach from Sycamore. Further, the retailer said it was confident in its independent prospects and would evaluate any offer against the shareholder value creation which it believes can be delivered as a standalone company.
In Asia on Friday, the Japanese Nikkei 225 index closed up 0.7%. In China, the Shanghai Composite ended up 1.1%, while the Hang Seng index in Hong Kong closed down 0.4%. The S&P/ASX 200 in Sydney closed up 0.6%.
The pound was quoted at $1.3150 early Friday, marginally soft on $1.3155 at the London equities close Thursday. The euro was priced at $1.1075, lower against $1.1113. Against the Japanese yen, the dollar was trading at JP¥118.90 in London, up from JP¥118.44.
Brent oil was quoted at $108.11 barrel Friday morning, up from $106.62 late Thursday.
The International Energy Agency on Friday urged governments to implement immediate measures to cut global oil consumption within months following supply fears stemming from Russia’s invasion of Ukraine. The 10 proposals put forward in a report, including increasing working from home and reducing speed limits, could cut oil consumption among advanced economies ‘by 2.7 million barrels a day within the next four months’, the IEA said.
Gold stood at $1,932.96 an ounce, lower against $1,942.97.
Friday’s economic calendar as EU trade data at 1000 GMT. On the UK political front, the Conservative Party spring conference begins, with Chancellor Rishi Sunak delivering a speech.
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