London share prices were mixed on Monday, while the pound was lower, after eurozone inflation data provided a reminder of the pressure on central banks, ahead of two key policy decisions later this week.
The FTSE 100 index was up 8.26 points, 0.1%, at 7,055.93. The FTSE 250 was down 16.02 points, also 0.1%, at 17,900.65, and the AIM All-Share was up 0.57 of a point, 0.1%, at 805.94.
The Cboe UK 100 was up 0.2% at 705.00, the Cboe UK 250 was down 0.1% at 15,369.78, and the Cboe Small Companies was down 5.14 points at 12,353.67.
The pound was quoted at $1.1552 at midday in London on Monday, down from $1.1593 at the equities close on Friday.
Brown Brothers Harriman said the pound was holding up relatively better than the euro ahead of the Bank of England rate decision, due on Thursday, but the dollar remains in favour.
'The combination of ongoing risk off impulses and continual repricing of Fed tightening risks is likely to see the dollar continue to recover after this recent correction,' BBH said. 'Much will depend on the Fed and how the U.S. data come in this week but so far, the signs are positive for the greenback.'
The euro stood at $0.9936 on Monday, down slightly against $0.9943 late Friday.
In European equities on Monday, the CAC 40 in Paris was down 0.1%, while the DAX 40 in Frankfurt was up 0.3%.
Growth in the eurozone economy slowed as expected, according to preliminary figures from the EU's statistical body, while consumer inflation picked up the pace.
According to a flash estimate from Eurostat, on a seasonally-adjusted annual basis, eurozone gross domestic product grew by 2.1%, slowing from 4.1% in the second quarter.
The reading came in line with FXStreet-cited consensus.
Meanwhile, a Eurostat flash estimate revealed eurozone inflation is likely to have accelerated more quickly than expected in October.
On a harmonised basis, eurozone consumer prices are estimated to have risen by 10.7% annually in October, speeding up from 9.9% in September. The reading was ahead of consensus of 10.2%, as cited by FXStreet.
On a monthly basis, harmonised consumer prices rose 1.5% in October, heating up from a 1.2% increase in September. The rise considerably overshot the consensus of 0.6%.
Providing the focus for the week ahead, there will be interest rate decisions from the US Federal Reserve on Wednesday and the Bank of England on Thursday. Both are expected to enact 75 basis point hikes.
Against the yen, the dollar was quoted at JP¥148.06 early Monday in London, up from JP¥147.54 late Friday.
Stocks in New York were called to open lower, with the DJIA seen down 0.3%, the S&P 500 index down 0.4%, and the Nasdaq Composite down 0.6%.
In London's FTSE 100 index, International Consolidated Airlines Group was up 4.4%. The Times reported that British Airways-owner is eyeing a potential acquisition of the budget airline, as part of renewed plans to consolidate the European airline industry,
IAG also has its eye on Portugal's flag carrier TAP. It already owns Spain's Iberia and Vueling and Ireland's Aer Lingus.
Last week, IAG chief executive said: 'We are a platform for consolidation. We will only do what makes sense, but we see there are opportunities to be stronger. We are a group that wants to consolidate the industry.'
easyJet was 6.9% higher.
'Many airlines will have been watching easyJet's share price collapse and weighing up their options. An opportunistic takeover bid now could net them a bargain in the long term, but equally it's a bold move to take given the gloomier economic outlook which could cause further disruption to earnings over the coming year,' said AJ Bell investment director Russ Mould.
But IAG may have some competition if it wants to make a play for easyJet, Mould maintains.
'Wizz Air has been linked as a potential suitor for easyJet in the past and there is also logic behind a tie-up of those two companies. Eastern Europe-focused Wizz Air could strengthen its position in Western Europe by owning easyJet. Additional airlines may also find a good rationale for owning easyJet.'
Wizz Air was up 5.4%.
International Distributions Services, formerly known as Royal Mail, added 7.5%. This follows news that the Communications Workers Union have cancelled a planned strike over the next fortnight, in a long running dispute over pay and conditions.
Additionally, IDS said the UK business secretary has confirmed that no further action will be taken with regards to Vesa Equity Investment's 22% stake in IDS. Vesa is a Luxembourg-based company, and its stake was being reviewed under the National Security & Investment Act 2021.
Vesa is controlled by Czech billionaire Daniel Kretinsky, who also owns stakes in West Ham United football club and Sainsbury's.
On AIM, TP Group shares soared, almost tripling in value.
The consulting, software and engineering company has agreed to a £17.5 million takeover by Science Group.
TP shareholders will receive 2.25 pence per share in cash, which is almost triple that of the closing price of 0.78p on Friday. Around 11.7% TP shareholders have given a letter of intent to accept the offer. Science Group itself already holds a 28% stake, meaning almost 40% support in total.
Science Group was up 4.7%.
Gold was quoted at $1,640.55 an ounce at midday on Monday, slightly higher than $1,640.91 on Friday. Brent oil was trading at $94.48 a barrel, higher than $93.34.
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