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London traders absorbed positive data for UK manufacturing on Friday, ahead of the eurozone, as Ukraine-Russia tension continued to cloud the macroeconomic backdrop. The FTSE 100 index was up 48.68 points, 0.5%, at 9,980.06. The FTSE 250 was down 63.06 points, 0.3%, at 22,407.32, and the AIM All-Share was up 1.91 points, 0.3%, at 768.30. The Cboe UK 100 was up 0.6% at 1,000.15, the Cboe UK 250 was down 0.5% at 19,459.29, and the Cboe Small Companies was up 0.4% at 17,728.13. Defence-oriented stocks were doing much of the heavy lifting on the FTSE 100 in early trade, with Rolls-Royce the top gainer, up 3.0%. Babcock and BAE Systems followed closely, rising 2.1% and 1.7% respectively. Strength in defence stocks was underpinned by developments around Ukraine-Russia peace talks. On Wednesday, Ukrainian President Volodymyr Zelensky said a deal to end the war was ‘90% ready’, while cautioning that key issues remained unresolved and warning against rewarding Moscow. US-led efforts to bring an end to Europe’s deadliest conflict since World War II have gathered pace in recent weeks, though both sides remain divided over territory in any post-war settlement. The pound was quoted at $1.3438 at midday on Friday in London, down from $1.3463 at the equities close on Wednesday. The euro stood at $1.1719, down from $1.1754. Against the yen, the dollar was trading at JP¥156.90 compared to JP¥156.62. UK manufacturing showed further signs of stabilisation at the end of 2025, with output and new orders edging higher and the sector posting its strongest reading in more than a year, according to survey data published by S&P Global on Friday. The seasonally adjusted S&P Global UK manufacturing purchasing managers’ index rose to 50.6 points in December from 50.2 in November, marking a 15-month high and remaining above the 50.0-point threshold separating expansion from contraction. The final reading was, however, below the earlier flash estimate of 51.2 points published in mid-December. Rob Dobson, director at S&P Global Market Intelligence, said: ‘Further signs of growth emanated from the UK manufacturing sector before the turn of the year. Output rose for the third successive month and new order intakes improved, albeit slightly, for the first time since September 2024.’ In European equities on Friday, the CAC 40 in Paris was up 0.2%, while the DAX 40 in Frankfurt was also up 0.2%. The eurozone’s manufacturing sector contracted more than expected in December, hitting a nine-month low, data published on Friday showed. The final Hamburg Commercial Bank eurozone manufacturing purchasing managers’ index, compiled by S&P Global, fell to 48.8 points in December from 49.6 in November, pushing it further below the 50.0-point no-change mark. The figure came in below the 49.2 flash reading reported in December. The reading was the lowest since March 2025, although the contraction signalled was only mild overall, S&P Global said. ‘Demand for manufactured products from the eurozone is slowing down again. Significantly fewer orders, declining order backlogs, and continued inventory reduction are the most obvious indicators of this. It is not surprising that companies are continuing to cut staff in this environment. Companies seem neither able nor willing to build momentum for the coming year, but are instead exercising caution, which is poison for the economy,’ said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. In Germany, the HCOB manufacturing purchasing managers’ index was reported at 47.0 points in December, below the flash score of 47.7 and November’s reading of 49.2. S&P Global noted the December PMI represented a 10-month low. In France, the seasonally adjusted HCOB France manufacturing PMI rose to 50.7 points in December, up from 50.6 points in the flash reading and 47.8 points in November. In a separate release, the European Central Bank said the annual growth rate of the broad monetary aggregate M3 increased to 3.0% in November 2025 from 2.8% in October, ahead of the 2.7% FXStreet consensus. Annual growth of the narrower monetary aggregate M1, comprising currency in circulation and overnight deposits, eased to 5.0% in November from 5.2% in October. The annual growth rate of adjusted loans to households stood at 2.9% in November, compared with 2.8% in October. It had been expected to remain at October’s level, according to FXStreet consensus. The annual growth rate of adjusted loans to non-financial corporations increased to 3.1% in November from 2.9% in October. Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.4%, the S&P 500 index up 0.6%, and the Nasdaq Composite up 1.1%. The yield on the US 10-year Treasury was quoted at 4.16%, widening from 4.11%. The yield on the US 30-year Treasury was quoted at 4.84%, widening/narrowing from 4.80%. Back in London, Spire Healthcare rose 1.1% after Sky News reported that the company has set a deadline for potential acquirers to signal takeover interest. The London-based private healthcare provider, through its advisers, has presented a January 20 deadline for expressions of interest, according to Sky News, though the date does not represent a deadline for formal offers. Back in September, Spire Healthcare said it was reviewing options for the business, including a possible sale. Boku rose 6.0% after launching a share buyback of up to 5% of its stock, saying the board believes the current valuation undervalues the business. The San Francisco, California-based mobile payment service provider said it has authorised the repurchase of up to 4 million shares, with the programme running until April 30 unless completed earlier. Abrdn Property Income Trust fell 9.6% after UK house price growth cooled more sharply than expected. Nationwide data showed annual house price growth slowed to 0.6% in December from 1.8% in November, the weakest pace since April 2024 and below the FXStreet consensus of 1.2%. On a monthly basis, house prices fell 0.4%, reversing a 0.3% rise in November and undershooting expectations for a 0.1% increase. Brent oil was quoted at $60.58 a barrel at midday in London on Friday, down from $61.56 late Wednesday. Gold was quoted at $4,392.20 an ounce, up from $4,315.00. Still to come on Friday’s economic calendar are manufacturing PMI releases for the US and Canada. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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