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Stocks closed higher on Thursday in London, despite data showing ‘catastrophic conditions’ in UK construction, and with investors widely anticipating a US rate cut. The FTSE 100 index closed up 18.80 points, 0.2%, at 9,710.87. The FTSE 250 ended up 69.54 points, 0.3%, at 22,070.99, and the AIM All-Share closed up 0.26 of a point at 749.43. The Cboe UK 100 was up 0.2% at 973.72, the Cboe UK 250 ended up 0.5% at 19,173.42, and the Cboe Small Companies was up 0.1% at 17,632.52. In London, figures showed UK construction activity fell at the fastest pace in five and a half years in November, in the eleventh month of lower construction output. The headline S&P Global UK construction purchasing managers’ index fell to 39.4 points in November from 44.1 in October. The reading was below the neutral 50-point mark separating growth from contraction for the eleventh month in a row. The rate of decline in total industry activity was the steepest recorded since May 2020. Rob Wood of Pantheon Macroeconomics said the report points to ‘catastrophic conditions in the construction sector, with the activity balance showing the sharpest output fall since the country was in lockdown in May 2020.’ ‘To say construction firms were unhappy with budget speculation would be an understatement,’ Wood added, although he thinks ‘the PMI remains too pessimistic.’ ‘Looking ahead, we expect activity in the construction sector to remain muted in the coming months, albeit growth will likely continue to outperform the catastrophic PMI. That said, the risks must lie to the downside, with construction output falls now possible in the coming months,’ he added. In European equities on Thursday, the CAC 40 in Paris closed up 0.4%, while the DAX 40 in Frankfurt ended 0.8% higher. In Europe, car makers fuelled gains on the back of the news that Donald Trump could seek to reduce fuel economy standards implemented by Joe Biden, aiming at making it easier for automakers to sell fossil fuel cars. ‘While this is a move aimed at lowering costs for US consumers, it also provides a shot in the arm for European carmakers that have struggled to dominate the EV space given rampant Chinese competition,’ noted Joshua Mahony at Scope Markets. The sector was further boosted by positive comments from Bank of America, which sees benefits for the sector from an expected reduction in regulatory pressures in 2026. BofA upgraded Renault, up 6.4%, and Porsche SE, up 4.8%, to ’buy’ from ’neutral’ and Mercedes-Benz, up 4.1%, to ’neutral’ from ’underperform’. Stocks in New York were down slightly at the time of the London equity close. The Dow Jones Industrial Average, S&P 500 index and Nasdaq Composite were all 0.1% lower. David Morrison of Trade Nation noted the probabilities of a 25 basis point rate cut following next week’s Federal Reserve monetary policy meeting have shot higher, after several senior FOMC members spoke up to say that a weakening labour market was trumping inflation fears when it came to considering rates. Despite this, Morrison noted there will be plenty of interest when the latest core PCE update, the Fed’s preferred inflation measure, is released Friday. ‘Could it possibly come in so high that the Fed has to put off a rate cut? Unlikely, but stranger things have happened,’ he added. The pound was quoted higher at $1.3353 at the time of the London equities close on Thursday, compared to $1.3342 on Wednesday. The euro stood at $1.1658, down against $1.1664. Against the yen, the dollar was trading lower at JP¥154.75 compared to JP¥155.02. The yield on the US 10-year Treasury was quoted at 4.10%, widened from 4.08%. The yield on the US 30-year Treasury was unchanged at 4.76%, stretched from 4.75%. The FTSE 250 saw some big swings in prices, with a double-digit gain for SSP, while Trustpilot and Baltic Classifieds plummeted. London-based SSP, which operates Upper Crust, leapt 11%, as it reported trading has ‘gained momentum’ in recent weeks and announced a ‘wide-ranging review’ of its Continental European rail business. The operator of food and beverage outlets in travel locations in 38 countries said it is also mulling options to ‘realise value’ in recently-listed Indian investee Travel Food Services. The Continental European arm has struggled with a ‘slow return of passenger numbers’ since the pandemic, SSP noted. But Trustpilot dropped 32%, after a scathing report from short seller Grizzly Research, which accused the Copenhagen-based consumer review platform of ‘mafia-style extortion campaigns against non-paying businesses’. Grizzly said, citing its own investigation, that Trustpilot created ‘unsolicited review profiles for all kinds of businesses with the intention to attract hyper-negative reviews and force these businesses into paying subscription deals to ’more actively manage’ the reviews.’ But Trustpilot hit back, calling the claims ‘selective, misleading and framed to support a predetermined narrative.’ ‘It omits key context and publicly available facts, creating a false impression and exhibits a lack of understanding of how Trustpilot works. Trust is our guiding principle and is central to everything we do,’ the firm added. The short seller recently also took aim at Hello Fresh, sending its shares into a tailspin. Also firmly in the red was Baltic Classifieds, down 14%, after it warned that lower revenue growth and continued investment will depress margins in the short term. Analysts were less than enamoured with the outlook commentary, with Panmure Liberum highlighting a ‘very poorly written statement’ and ‘poor quality communications,’ while Peel Hunt noted ‘lower clarity in its outlook than usual.’ Brent oil was quoted at $63.45 a barrel at the time of the London equities close on Thursday, up from $63.04 late Wednesday. Gold was quoted at $4,214.64 an ounce on Thursday, lower against $4,222.94. The biggest risers on the FTSE 100 were 3i, up 154.00p at 3,153.00p, Burberry, up 35.50p at 1,213.00p, Spirax Group, up 200.00p at 6,920.00p, JD Sports Fashion, up 2.08p at 80.50p and Rolls-Royce, up 28.00p at 1,091.00p. The biggest fallers on the FTSE 100 were Entain, down 30.60p at 755.20p, Diageo, down 68.00p at 1,682.00p, Auto Trader, down 13.80p at 608.40p, London Stock Exchange, down 178.00p at 8,690.00p and Rightmove, down 9.60p at 522.80p. Friday’s economic calendar has US personal consumption expenditures data, the Michigan consumer sentiment index, and unemployment and average hourly wages figures in Canada. In the UK, the Halifax house price index will be published. There are no significant events scheduled in Friday’s UK corporate calendar. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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