Stocks in London remained in the red at midday on Monday, trimming a year-to-date gain which already fell short of loftier progress in US stocks.
The FTSE 100 index traded down 15.85 points, 0.2%, at 8,133.93. The FTSE 250 was down 62.74 points, 0.3%, at 20,425.91, and the AIM All-Share was up just 0.34 of a point at 715.53.
The Cboe UK 100 was down 0.1% at 815.90, the Cboe UK 250 down 0.2% at 17,886.93, and the Cboe Small Companies fell 0.4% at 15,778.44.
The CAC 40 in Paris was up 0.1%, but the DAX 40 in Frankfurt was down 0.1%.
In New York, the Dow Jones Industrial Average is called down 0.1%, and the S&P 500 and Nasdaq Composite down 0.2%.
‘The equity market story of 2024 was American exceptionalism and the outperformance of US stocks,’ XTB analysts commented.
‘The S&P 500 has blown away the competition from Europe and the US.’
The S&P 500 has risen more than a quarter so far in 2024. The FTSE 100, in comparison, is up around 5%. London’s flagship index is down around 2% so far in December, missing out on a ’Santa rally’.
Hotel firm Whitbread was the best large-cap performer in London early Monday afternoon, up 1.3%. Shares are down around 19% year-to-date, however.
Elsewhere in London, Ondine rose 5.2%. It said it has recruited and treated the first patient in its phase 3 clinical trial evaluating its non-antibiotic nasal photodisinfection technology.
Ondine Biomedical is a Vancouver, Canada-based life sciences company specialising in light-activated antimicrobial therapies.
The AIM-listed firm said the trial will involve approximately 5,000 patients in 14 hospitals, the first of which enrolled last Friday at Centennial Medical Center in Nashville, Tennessee.
The phase 3 trial is being conducted in collaboration with Nashville, Tennessee-based healthcare services provider HCA Healthcare Inc.
Ondine said that the group crossover study will recruit surgical patients undergoing ‘cardiac, orthopaedic, vascular, neurosurgical or radical mastectomy procedures’ and aims to compare standard infection prevention methods to Ondine’s nasal photodisinfection technology in reducing the incidence of surgical site infections.
It is anticipated that the final patient will be enrolled in mid-2025 with preliminary results expected in autumn.
Cybersecurity firm NARF Industries reported a decline in half-year earnings as it grappled with ‘temporary US government budget delays’. Shares fell 5.9%.
NARF’s pretax loss in the half-year to September 30 stretched to $1.9 million from $1.0 million a year earlier. Revenue amounted to $1.2 million, a 62% slump from $3.1 million.
‘The company experienced a decline in revenues, reflecting temporary US government budget delays and a strategic focus on accelerating the development and commercialisation of the innovative SocialCyber platform,’ it said.
The pound was quoted at $1.2604 early Monday afternoon, up from $1.2588 at the time of the London equities close on Friday. The euro was higher at $1.0448 from $1.0429. Against the yen, the dollar rose to JP¥157.62 from JP¥157.50.
In focus this week will be US economic data, as investors look for clues on the Federal Reserve’s interest rate outlook.
‘The markets are still digesting the Fed’s hawkish message. The Fed Funds futures market has quickly adjusted and is not fully pricing in the next cut until June. Looking ahead, the market is pricing in only around 50% odds of a second cut in H2. The latest dot plots show two cuts next year and so this is one of those rare times when the market is more hawkish than the Fed,’ analysts at Brown Brothers Harriman commented.
Purchasing managers’ index readings will be in focus after New Year’s Day later this week, with an S&P Global and ISM readings for the US on Thursday and Friday, respectively.
There is also inflation data from eurozone nations this week and next, culminating with a reading for the single currency bloc as a whole next week Tuesday.
BBH analysts added: ‘Some ECB hawks remain vocal. Governing Council member Holzmann said ’it could be the case that we take more time before lowering rates again. It’s true, some energy prices are trending upwards again. But there are also other scenarios for how inflation could return, such as a stronger depreciation of the euro’. We believe Holzmann is in the minority. The market is fully pricing in a 25 basis point cut at the next meeting January 30, as well as 100-125 bp of total easing over the next 12 months that would see the policy rate bottom between 1.75 and 2.0%.’
A barrel of Brent oil rose to $73.82 midday Monday from $73.62 at the London equities close on Friday.
XS.com analyst Antonio Di Giacomo commented: ‘External factors have also supported prices globally. Expectations of greater fiscal stimulus in China, one of the world’s largest oil consumers, have positively influenced market sentiment. Investors anticipate that economic support measures in the world’s second-largest economy will boost crude demand in the coming months, partially offsetting concerns about a global economic slowdown.
‘The reduced US supply and expectations of stronger global demand have created a favorable environment for crude price recovery. However, monitoring potential changes in Opec+ production policies and global economic data is essential, as it could influence price movements in the coming weeks.’
Gold traded at $2,618.44 an ounce, falling from $2,619.91.
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