(Alliance News) – The FTSE 100 rose late in the session to close in the green as US markets gained ground in a shortened session.
The FTSE 100 index rose 6.08 points, or 0.1%, to 8,287.30. The FTSE 250 rose 8.79 points, to 20,771.57, and the AIM All-Share gained 1.58 points, 0.2%, to 732.49.
Over the week, the FTSE 100 rose 0.3%, the FTSE 250 rose 0.9% and the AIM All-Share remained stable.
The Cboe UK 100 finished 0.1% higher at 832.44, the Cboe UK 250 added 0.2% to 18,275.37, and the Cboe Small Companies gained 0.3% to 15,833.67 .
In Europe, the CAC 40 in Paris finished up 0.8%, while the DAX 40 in Frankfurt rose 1.0%.
Eurozone consumer price inflation accelerated to 2.3% in November, in line with consensus, from 2.0% in October, according to a Eurostat estimate.
According to Eurostat, the annual increase in prices of services fell to 3.9% this month, compared to 4.0% in October. However, energy prices fell at a slower pace of 1.9% compared to 4.6%.
This is the last set of inflation data before the European Central Bank's next decision on December 12. Final data for November will be released on December 18, after the interest rate decision.
Kathleen Brooks, an analyst at XTB, said hopes of a half-point reduction had faded after the data was released. Nonetheless, the analyst still expects the central bank to adopt a faster easing cycle than its UK and US counterparts.
“Overall, we don't think this inflation data can derail the ECB's rate cuts. The ECB is expected to cut rates at a much faster pace than the US or UK next year, which explains the weakness of the euro Interest rate differentials are currently the driving force of the foreign exchange market, and the euro is in the crosshairs If we add political risk. French, it is difficult to see how “the euro can recover significantly in the long term,” Brooks added.
ING said: “With demand expected to remain weak, it does not appear that the ECB needs to be overly concerned about the current rise in inflation. Although December is likely to be high again in terms of Concerning overall inflation, we can expect a moderation at the start of next year.
In New York, the Dow Jones Industrial Average was up 0.5%, the S&P 0.6% and the Nasdaq 0.7%.
US markets end a shortened trading day at 6:00 p.m. GMT.
The pound was quoted at USD 1.2697 late Friday afternoon in London, up from USD 1.2677 at the close of European stock markets on Thursday. The euro settled at USD 1.0579, up from USD 1.0549.
Against the yen, the dollar traded at 150.43 yen, down from 151.50 yen.
UBS said that after weeks dominated by U.S. politics, investors' attention will turn to several important macroeconomic data next week.
“Markets will try to assess whether the data is too strong for the Fed to cut interest rates in December as expected. In our view, it would take a big push for the US central bank to take a break at the meeting of the next month.
In the UK, signs of life have appeared in the housing market, with mortgage approvals last month reaching their highest level since summer 2022.
Some 68,300 mortgage approvals for home purchases were recorded in October, marking the highest monthly total since August 2022, when 72,200 mortgages were given the green light, according to Bank of England figures. .
Separately, real estate website Zoopla predicts that the number of home sales will increase by 5% by 2025, to 1.15 million.
Zoopla expects property values to increase by 2.5% on average in the UK in 2025, based on certain assumptions regarding mortgage interest rates.
Homebuilders didn't benefit too much from the news, posting modest gains. Persimmon rose 0.2%, Barratt Redrow 1.0% and Taylor Wimpey 0.8%.
Elsewhere, broker commentary supported the best and worst performing stocks in the main blue chip index.
Anglo American rose 5.4% after Jefferies upgraded it from “hold” to “buy”, noting that progress on its spin-off plans is “encouraging” so far.
“There are still timing and value appreciation risks associated with Anglo's planned restructuring, particularly in the case of De Beers, but we see value and potential positive catalysts in Anglo shares following decline from last summer's highs,” the broker said in a note to clients.
But BAE Systems fell 4.8% after Bank of America downgraded the stock to “underperform.”
Retail was also the center of attention during “Black Friday”, a key day for the sector. Berenberg started covering Next at 'buy', but took a less bullish view on Marks & Spencer, starting at 'hold'.
Next rose 2.2%, while M&S lost 0.4%.
Berenberg reset sporting goods retailer JD Sports to “buy”, although its shares fell 1.2%.
JD is also among Berenberg's top consumer picks for 2025, as are value retailer B&M, cards and gifts seller Card Factory, electricals retailer Currys and furniture company Dunelm.
B&M rose 1.1%, Card Factory 3.4%, Currys 0.2% and Dunelm 0.9%.
In the FTSE 250, shares in TI Fluid rose 1.9%. It has accepted a £1.04 billion offer from Canadian auto components maker ABC Technologies.
ABC, owned by funds affiliated with Apollo Global Management IX LP, will pay 200.0p in cash for each TI Fluid share, a 55% premium to the systems provider's 129.5p share price thermal management and fluid handling on September 13.
September 13 was the last trading day before TI Fluid entered an “offering period.”
The deal gives TI Fluid an enterprise value of £1.83 billion, including debt.
Shares of Spire Healthcare rose 2.7%. Bangalore-based Narayana Health is considering acquiring a majority stake in private hospital company Spire, according to the Economic Times (India).
Narayana is in talks with Spire shareholders to acquire the company, the Economic Times reported, citing people “with knowledge of the matter.”
AJ Bell's Mr Coatsworth added: “Spire is a frustrating stock, to put it mildly, whose price has barely changed since late 2021, meaning investors may welcome the opportunity to sell into Narayana if they pay a premium.”
Brent oil was quoted at $72.65 a barrel late Friday afternoon, down slightly from $72.74 at the close of London stock markets on Thursday. Gold firmed to $2,660.13 an ounce, from $2,641.60.
Monday's global economic agenda includes a series of manufacturing PMI data and eurozone unemployment figures.
Next week's half-year results from retailer Frasers, packaging company DS Smith and housebuilder Berkeley Group are on the agenda.
By Jeremy Cutler, Alliance News reporter
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