|
London’s blue chip index beat its peers in Paris and Frankfurt on Friday morning just before flash UK composite PMI data, after Office for National Statistics data showed that UK retail sales unexpectedly grew on-month in December. The FTSE 100 index opened up 14.24 points, 0.1%, at 10,164.29. The FTSE 250 was down 80.25 points, 0.3%, at 23,290.68, and the AIM all-share was up 2.04 points, 0.3%, at 819.71. The Cboe UK 100 was up 0.1% at 1,016.58, the Cboe UK 250 was down 0.2% at 20,499.73, and the Cboe small companies was marginally higher at 18,176.18. In European equities on Friday, the CAC 40 in Paris was down 0.3%, while the DAX 40 in Frankfurt was slightly lower. Sterling was at $1.3497 on Friday morning, down marginally from $1.3498 at the London equities close on Thursday. The euro was lower at $1.1740 from $1.1749. Against the yen, the dollar was lower at JP¥158.15 versus JP¥158.27. Economic data was in focus on Friday, after UK retail sales unexpectedly rose in December, but fell in the final quarter of the year. The Office for National Statistics said retail sales volumes rose 0.4% in December, following a fall of 0.1% in November, beating an FXStreet-cited forecast for a 0.1% decline. Non-store retailers’ volumes rose in December, following falls in October and November, as the ONS noted that online jewellers reported that demand for precious metals picked up. The 0.1% fall in November was unrevised, while the ONS revised up October’s reading to a 0.8% fall from a 0.9% decline previously. Retail sales volumes in December were 2.5% higher than a year ago, beating expectations of a 1.0% increase. In the quarter to December, retail sales volumes were down 0.3% compared to the previous quarter. The ONS said both supermarkets and non-store retailers’ sales both fell following a ‘strong’ third quarter. Annual sales volumes rose 1.3% over the year to 2025, with increases in both food and non-food stores, as well as non-store retailers. Investors remained focused on geopolitical developments on Friday at the end of a turbulent week. ‘As we enter the second year of the Trump administration, it is increasingly clear even for those who still had doubts that US deals and agreements offer little guarantee of stability. New tariffs could be announced at any time, and they could be as ambitious as US objectives themselves regardless of whether they make sense, are legal, or are accepted by the rest of the world,’ noted Swissquote analyst Ipek Ozkardeskaya. In Asia on Friday, the Nikkei 225 in Tokyo was up 0.3%. In China, the Shanghai Composite was 0.3% higher, while the Hang Seng Index in Hong Kong rose 0.5%. The S&P/ASX 200 in Sydney was 0.1% higher. In the US on Thursday, Wall Street ended higher with the Dow Jones Industrial Average up 0.6%, the S&P 500 rose 0.6% and the Nasdaq Composite 0.9% higher. The yield on the US 10-year Treasury was quoted at 4.24% on Friday morning, narrowing from 4.27% at the close on Thursday. The yield on the US 30-year Treasury slimmed to 4.82% from 4.87%. In London, BP climbed 1.3% while Shell was up 0.7%, as the price of oil rebounded after a fall on Thursday. Brent oil was trading higher at $64.55 a barrel from $64.26 at Thursday’s close. Defence stocks were also trading higher on Friday, as Rolls-Royce rose 0.6% and BAE Systems increased 1.0%, against a backdrop of heightened geopolitical tensions. Shares in Haleon were up 0.8%, after Barclays raised its rating on the stock to ’overweight’ from ’equal weight’. The bank increased its price target for Haleon to 420 pence from 380p. Babcock International shares were down 2.5% after it said Chief Executive David Lockwood will retire by the end of the calendar year, to be replaced by current CEO of Babcock’s Nuclear sector Harry Holt. Lockwood joined the London-based aerospace and defence engineering firm as CEO in September 2020. ‘The appointment of a strong internal candidate ensures Babcock’s ability to continue implementing the strategy which has been fundamental to the business growth and success,’ the firm said. In a trading update, Babcock says its performance in the third quarter ‘has seen a continuation of the strong performance reported at the half year’. The London-based aerospace and defence engineering firm said it is confident of deliver the board’s expectations for financial 2026 trading, including meeting the margin target of 8%. It added that the vast majority of forecast revenue for the year is now contracted. Babcock said the average of analysts’ forecasts is revenue of £5.08 billion, up 5.1% from £4.83 billion in financial 2025, and underlying operating profit of £409 million for the year, up 13% on-year from £362.9 million. On the FTSE 250 index, shares in SSP Group were 2.2% higher as it said its expectations for financial 2026 are unchanged as it reports ‘positive trading momentum’ through the remainder of the first quarter. It reported 6% sales growth for the quarter, or 5% on a like-for-like basis. On a constant currency basis, sales in North America grew 4% in the first quarter to the end of December, while continental Europe sales rose 1%. In the UK and Ireland, the London-based operator of food and beverage outlets in travel locations said sales rose 8% on-year with ‘sustained strong like-for-like sales’. ‘The new financial year has started well, with positive revenue momentum,’ SSP said. Shares in Rank Group were down 5.8% after Deutsche Bank Research cut its rating on the stock to ’hold’ from ’buy’. The bank lowered its price target to 104 pence from 163p. Among small-caps, Aura Energy shares jumped 16%. The Melbourne, Australia-based uranium and battery metals developer said MMCAP International and other investors will provide funding of C$10 million, around £5.4 million, for a 20% interest in its polymetallic Haggan project in Sweden. Aura Energy said this establishes the project’s value at C$50 million. ‘We are delighted to welcome investors of the calibre of MMCAP, Aura’s largest shareholder, and other high-quality investors into this new vehicle for Aura’s Haggan project, and the future support they can bring. We believe their investment is a demonstration of the quality and potential of the project, and its exciting future as... mining of uranium is now allowed again in Sweden,’ said Executive Chair Phil Mitchell. Gold was higher at $4,919.40 an ounce early on Friday from $4,874.80 late Thursday. The yellow metal hit another new record of $4,967.37 earlier on Friday. Still to come on Friday’s economic calendar is a flash UK composite PMI reading, at 0930 GMT, with a US flash PMI reading due in the afternoon, along with Canada retail sales figures. Copyright 2026 Alliance News Ltd. All Rights Reserved.
|
