(Alliance News) – Stock prices in London closed lower on Monday, on a tepid final full trading day of the year, while shares in New York tumbled on a further pullback in tech stocks.
The FTSE 100 index ended 28.77 points, 0.4%, lower at 8,121.01. The FTSE 250 lost 84.10 points, 0.4%, to 20,404.55, and the AIM All-Share lost 0.89 points, 0.1%, to 714.23.
The Cboe UK 100 ended 0.2% lower at 814.55, the Cboe UK 250 fell 0.4% to 17,858.37 and the Cboe Small Companies fell 0.5% to 15,767.25.
The CAC 40 in Paris closed 0.6% lower and the DAX 40 in Frankfurt lost 0.4%. The markets in Frankfurt will not open again until after the new year. The DAX 40 achieved an increase of approximately 19% in 2024.
The pound was trading at USD1.2517 late on Monday afternoon, down from USD1.2588 at the close of London stock markets on Friday. The euro was lower at USD1.0384, against USD1.0429. Against the yen, the dollar fell from JPY157.50 to JPY157.19.
A barrel of Brent crude rose from USD73.62 on Friday to USD73.93 at the close of stock exchanges in London on Monday. Gold traded at USD2,597.04 per ounce, down from USD2,619.91.
Gold mining companies were among those holding the FTSE 100 in check, following spot prices lower. Fresnillo lost 2.3% and Endeavor Mining fell 1.7%.
Gains for oil multinationals Shell and BP, which rose 0.1% and 0.3% respectively, were not enough to help London’s benchmark index out of a post-Christmas dip.
Below the FTSE 250, Ferrexpo lost 9.0% as the iron ore pellet producer worries about the war in Ukraine.
US President Joe Biden on Monday unveiled a US$2.5 billion military aid package for Ukraine, as Washington races to deliver aid before Donald Trump takes office in weeks.
Trump’s election victory in November, during which he has repeatedly criticized aid to Ukraine, has cast doubt on the future of US aid, leaving a limited window to disburse billions of dollars in already approved aid before his swearing-in next month.
Monday’s aid includes a USD1.25 billion military “withdrawal package” that would allow the Pentagon to pull weapons from US stockpiles and quickly send them to the battlefield.
Another USD1.22 billion will be financed through the Ukraine Security Assistance Initiative, under which military equipment will be purchased from the defense industry or partners.
The outgoing Biden administration is doing everything it can to send as much aid as possible to Ukraine before Trump takes office on January 20.
Trump has often spoken admiringly of Russian President Vladimir Putin, claiming that he himself could end the war in a day, without saying how.
This has fueled fears that the US will impose terms for ending the war dictated by Russia.
In London, cybersecurity company NARF Industries reported a drop in half-year profit as it faced “temporary delays in the US government’s budget”. Shares fell 8.3%.
NARF’s pre-tax loss in the six months to September 30 widened to USD1.9 million from USD1.0 million a year earlier. Sales amounted to USD1.2 million, down 62% from USD3.1 million.
“The company saw revenue declines due to temporary delays in the US government budget and a strategic focus on accelerating the development and commercialization of the innovative SocialCyber platform,” the company said.
In New York, the Dow Jones Industrial Average was 1.1% lower at the close in London. The S&P 500 was also down 1.1% and the Nasdaq Composite lost 1.3%.
Tech powerhouses were struggling. Netflix was 1.3% lower, with the streaming service being the center of attention due to the release of the second episode of the hit series Squid Game. Facebook owner Meta Platforms fell 1.4%.
Boeing fell 2.5%.
South Korean officials have ordered a “comprehensive inspection” of all Boeing 737-800 aircraft operated by the country’s airlines after a Jeju Air plane crashed and burst into flames on Sunday, killing 179 people on board.
Meanwhile, IntercontinentalExchange announced that the New York Stock Exchange will be closed on January 9, the national day of mourning following the death of former President Jimmy Carter.
The Chinese NBS manufacturing purchasing managers’ index reading is on the economic calendar on New Year’s Eve tonight.
The financial markets in Frankfurt, Milan and Tokyo are closed on Tuesday. In Tokyo they won’t open again until January 6.
By Eric Cunha, news editor at Alliance News
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