London’S FTSE 100 posted a solid, albeit unspectacular, profit on Thursday during the last full trade of the year, leaving investors wondering what easing Covid-19 restrictions in China could mean for global inflation.
The FTSE 100 index ended 15.53 points or 0.2% higher at 7,512.72. The FTSE 250 rose 110.95 points or 0.6% to 18,996.45 and the AIM All-Share added 4.17 points or 0.5% to 836.45. The Cboe UK 100 rose 0.1% to 750.88, the Cboe UK 250 added 0.6% to 16,459.77 and the Cboe Small Companies climbed 0.6% to 13,188. 32. Profits for the London large-caps were overshadowed by industry peers on the Old continent and across the Atlantic. In Europe, the CAC 40 index in Paris closed 1.0% higher, while the DAX 40 in Frankfurt rose 1.1%.
In New York, the Dow Jones Industrial Average rose by 1.0% at the closing bell, the S&P 500 by 1.6% and the Nasdaq Composite by 2.4%.
Stocks in Paris, Frankfurt and New York struggled on Wednesday. Oanda analyst Craig Erlam noted, ” We continue to drift towards the end of the year with investors who have little to cling to that will steer the markets in one direction or another. That’s so often the case at this time of year and while 2022 could have been different, given how chaotic the rest of the year has been, it hasn’t turned out to be. Investors are cautiously entering 2023, are prepared for more interest rate hikes and expect recessions worldwide. The bar is low, but quite high.”
Investors worldwide initially applauded the easing of Covid-19 restrictions in China, but are now increasingly concerned about the impact of the Chinese economy’s reopening on global supply chains and inflation.
Some countries have imposed restrictions on the arrival of Chinese. The US and a number of other countries have announced they will require a negative Covid test for all travellers from mainland China, but the UK has not done so so far.
However, the UK Government appeared to back down on its proposal not to screen travellers from China for Covid after critics, including two former health ministers, called for tests to be introduced.
Defence Secretary Ben Wallace said Thursday that the possibility of imposing restrictions on visitors from the East Asian country is “being reviewed”.
This comes after former health ministers James Bethell and Steve Brine, among others, pressured the government after her statement that there were “no plans” to introduce tests for visitors from China.
London Miners were under pressure to sell on Thursday, after initially cheering news from China on Wednesday. China is a major consumer of minerals.
Anglo American fell 1.0%, while Antofagasta lost 2.1%.
Antofagasta’s share was also affected by the message that access to the Los Pelambres mine in Chile is blocked by a group of people.
Antofagasta stated that the group is asking for compensation to free up access, but added that so far there have been no material consequences for production.
On the other side of the large-cap index, Scottish Mortgage Investment Trust rose 3.7%. The investor has stakes in several US tech stocks, which traded higher on Thursday.
Ferrexpo extended the declines, losing 3.0% after falling 4.9% on Wednesday. The producer of iron ore pellets noted that non-executive director Kostyantin Zhevago, who owns more than 50% of the company, has been detained by the French authorities.
Ferrexpo said it believes this has to do with matters unrelated to the company, but said it would clarify the situation on a weekly basis and update it if necessary.
Applied Graphene has expanded profits. The AIM listing added a 34% increase to the 20% increase in the share price as of Wednesday.
On Wednesday, it said it had received non-binding indicative proposals for its sale or the sale of its main operating subsidiary.
The Cleveland, England-based graphene materials manufacturer said it is in talks with the parties involved and expects final proposals in early January. After this, the board would select a preferred bidder to proceed with. Applied added that there is no certainty about final proposals, nor about the terms of any proposals.
Allergy Therapeutics plummeted 56% after the company announced that its shares will be withdrawn from trading next week due to delays in the completion of the audit of its annual results.
In September, Allergy Therapeutics announced its unaudited preliminary results for the fiscal year ended June 30. It fell to a pre-tax loss of GBP12.7 million,versus a gain of GBP3. 7 million a year earlier. Revenue fell from GBP 84.3 million to GBP 72.8 million.
“It is not aware of any material change that will need to be made to the results and is actively working towards the completion of the audit and the publication of its annual report and accounts,” Allergy Therapeutics said in a statement.
The pound quoted 1.2057 USD at the close of the London Stock Exchange on Thursday, against 1.2029 USD at the close on Wednesday. The euro quoted USD1.0661,higher than USD1. 0617. Against the yen, the dollar quoted JPY133.31, lower than JPY134. 23.
Brent oil listed in London on Thursday at USD82.78 per barrel, down slightly from USD82. 87 at the end of Wednesday. Gold was quoted at USD1, 811.91 per ounce, up from USD1, 801.04.
Friday’s economic calendar includes a UK Nationwide house price index at 0700 GMT. London’s financial markets will close early on Friday at 1230 GMT.
