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(Alliance News) - Stocks in London ended lower on Tuesday despite optimism over lockdown restrictions being lifted next month, while the DAX set a fresh record amid surging German business confidence.
The FTSE 100 index closed down 21.80 points, or 0.3%, at 7,029.79. The mid-cap FTSE 250 index ended down 44.83 points, or 0.2%, at 22,438.90. The AIM All-Share index closed flat at 1,249.09.
The Cboe UK 100 index closed down 0.2% at 701.20. The Cboe 250 ended 0.1% lower at 20,210.40. The Cboe Small Companies shed 0.1% at 14,874.60.
In Paris the CAC 40 ended down 0.1%. The DAX 30 in Frankfurt ended up 0.2% at 15,465.09, which was a fresh record high.
The euro was trading at five-month highs against the dollar, quoted at USD1.2236 at the European equities close, up from USD1.2222 late Monday.
Sentiment was boosted by surging German business confidence.
The Ifo institute's monthly barometer based on a survey of 9,000 companies climbed to 99.2 points in May, 2.6 points up from April and its highest value in two years.
In the FTSE 100, food delivery platform Just Eat Takeaway ended the best performer, up 4.5%, in a positive read-across from continental peer Delivery Hero - which ended 5.1% higher in Frankfurt.
British Airways parent International Consolidated Airlines closed up 2.5% amid optimism over the economy reopening. FTSE 250-listed cruise line operator Carnival finished 3.1% higher.
"The reopening trade appears to be well and good according to today's major movers, with gains across the likes of Card Factory, Cineworld, Carnival and IAG all helping to support the FTSE 350 index. While the UK government has taken a somewhat stringent approach to international travel, speculation that we could see travel to Spain reopen in early June does add the possibility of a while raft of routes coming back into play," said IG Group's Josh Mahony.
"With [prime minister] Boris Johnson expected to push ahead with the 21 June reopening date the risks associated with the rise in the Indian variant appear to be subsiding. Instead Johnson looks likely to impose region restrictions where necessary, with the PM likely to see that 21 June date as a key target to hammer home just how well his government has dealt with the virus," Mahony added.
Aveva closed up 1.6% after the industrial software provider reported a dip in annual revenue after an improved second half, but expressed optimism after completing the deal to buy Osisoft.
Revenue in the financial year that ended March 31 fell 1.6% to GBP820.4 million from GBP933.8 million, while pretax profit tumbled to GBP34.2 million from GBP92.0 million.
Aveva proposed a final dividend of 23.5p per share. After adjusting for the bonus element of the rights issue used to buy Osisoft, that's an increase of 1% from the 23.3p per share final dividend for financial 2020.
The Cambridge-based firm said its outlook remains in line with the board's expectations. Aveva's existing businesses and Osisoft are seen continuing their long-term organic growth rates.
At the other end of the large-caps, miners Anglo American, Glencore and Antofagasta ended among the worst performers, down 2.4%, 2.1% and 2.0% respectively, still reeling after China stepped up its fight against surging commodities prices.
In the FTSE 250, Royal Mail ended the best performer, up 6.6%, after Peel Hunt upgraded the postal operator to Buy from Hold saying the stock trades at a discount to peers and its future prospects look bright after positive annual results last week.
With a market value of GBP5.92 billion, the 505-year-old institution looks set to re-enter the FTSE 100 after a two-year hiatus as part of the FTSE Russell index review next week.
At the other end of the mid-caps, Greencore Group ended as the worst performer, down 16%, after the sandwich maker said its first half performance was hurt by lockdown measures, reducing demand for on-the-go food.
The Leinster, Ireland-based firm has seen sales recover somewhat as restrictions ease, though it noted revenue in the early weeks of the second half of its financial year were still 14% below pre-pandemic levels.
Revenue in the six months ended March 26 fell 19% year-on-year to GBP577.1 million from GBP712.7 million. Greencore swung to a pretax loss of GBP1.8 million from a GBP27.3 million profit a year earlier.
The company said revenue was hurt by a "reduction in consumer mobility as a result of tiered restrictions and lockdowns in the UK".
The pound was quoted at USD1.4128 at the London equities close, down from USD1.4157 at the close Monday, but the currency hit an intraday high of USD1.4211 in early trade.
Against the yen, the dollar was trading at JPY108.96, up from JPY108.75 late Monday.
Stocks in New York were subdued at the London equities close, with the DJIA, the S&P 500 and the Nasdaq Composite all flat.
Brent oil was quoted at USD68.71 a barrel at the equities close, up from USD68.00 at the close Monday.
Oil prices gained as talks between Iran, the US and other world powers aimed at reviving their 2015 nuclear agreement remained mired in differences.
Gold was quoted at USD1,892.55 an ounce at the London equities close, higher against USDUSD1,884.66 late Monday.
A light economic events calendar on Wednesday has France consumer confidence at 0745 BST.
The UK corporate calendar on Wednesday has annual results from energy firm SSE, property company British Land and from high street stalwart Marks & Spencer.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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