Last checked at 
(Alliance News) - The FTSE 100 perked up in late trading to end Monday in the green despite mixed showings elsewhere.
The FTSE 100 index rose 25.59 points, 0.3%, at 8,312.89. The FTSE 250 ended 2.52 points lower at 20,769.05, and the AIM All-Share rose 0.55 of a point, 0.1%, at 733.04.
The Cboe UK 100 ended up 0.2% at 834.02, the Cboe UK 250 gave up 0.1% at 18,251.41, and the Cboe Small Companies gained 0.3% to 15,878.64.
It was a mixed picture in Europe, where the CAC 40 in Paris ended little changed, while the DAX 40 in Frankfurt leapt 1.4%, hitting a fresh high.
Political unease and uncertainty continue to hold back the French market.
Emmanuel Cau at Barclays thinks compromise on the French budget remains possible, but any relief may be short-lived.
"There is no easy solution to the political impasse, while long-term fiscal and growth fundamentals remain poor. Impact at the EU-wide level is unhelpful, yet limited. We keep a preference for DAX over CAC," he added.
Goldman Sachs noted negotiations over the 2025 budget have intensified as far-right party RN signalled it might oppose the government’s proposal.
"As a result, the government is likely to face several confidence votes between December 4 and 20, the outcome of which has become more finely balanced. The passing of a resolution of no-confidence would have material implications for the French economic outlook, as the government would be forced to resign, and the budget bill would be rejected," the bank explained.
In New York, markets were mixed. The Dow Jones Industrial Average was down 0.2%, the S&P was 0.2% higher, hitting another record high, and the Nasdaq climbed 0.8%.
A survey showed that the mood among US manufacturers improved in November, with a rebound in optimism leading to renewed job creation. However, activity remained weak.
The seasonally adjusted S&P Global US manufacturing purchasing managers’ index rose to 49.7, beating the FXStreet consensus for a reading of 48.8. Although it remained below the 50.0 no-change mark, the reading was up from 48.5 in October and the highest in the current five-month sequence of deteriorating business conditions.
The rate of decline in new orders slowed sharply, while stronger confidence around the future encouraged firms to take on additional staff. Output continued to be scaled back, however.
Meanwhile, the rate of input cost inflation weakened further and was the slowest for a year. In contrast, output prices were raised at a slightly faster pace.
Chris Williamson, chief business economist at S&P Global Market Intelligence said: "Optimism about the year ahead has improved to a level not beaten in two and a half years, buoyed by the lifting of uncertainty seen in the lead-up to the election, as well as the prospect of stronger economic growth and greater protectionism against foreign competition under the new Trump administration in 2025."
Separate data from the Institute for Supply Management showed the manufacturing sector declined for the eighth consecutive month and the 24th time in the last 25 months.
However, the ISM's manufacturing PMI did pick up to 48.4 in November, from 46.5 in October.
Capital Economics said the rebound in the ISM manufacturing index was "as expected following recent hurricanes and the end of the Boeing strike, however the breakdown showed the sector is still stuck in a rut."
"We doubt it will do little to sway the Fed's thinking given the more important releases still to come ahead of this month’s meeting."
The figures come ahead of a slew of data on the US labour market this week culminating in nonfarm payrolls on Friday.
"This Friday's jobs report will be pivotal for near-term Fed policy as well as the path ahead. We expect a soft report with just 155,000 new jobs added (despite a hurricane and strike bounce back) and the unemployment rate rising to 4.3%," economists at Citi said.
Goldman Sachs predicts payrolls to grow by 235,000 in November and puts the market consensus at 200,000.
"Big data indicators indicated a sequentially stronger pace of job creation, and we estimate that the end of the hurricanes that weighed on October job growth will likely boost November job growth by 50,000," Goldman said.
The pound was quoted at USD1.2643 late on Monday afternoon in London, down from USD1.2697 at the time of the European equities close on Friday. The euro stood at USD1.0486, down from USD1.0579.
Against the yen, the dollar was trading at JPY149.24, falling from JPY150.43.
Sterling slipped after weaker UK data. The UK manufacturing sector endured a sharper decline than expected last month, a survey showed, amid the steepest fall in new business since February.
Survey respondents also pointed to a delay in some investment decisions, by both manufacturers and customers, after the UK budget.
The S&P Global UK manufacturing purchasing managers' index fell to a nine-month-low of 48.0 points in November from 49.9 in October. The final reading was below the flash estimate of 48.6 points.
The 50-point mark separates growth from decline, so the latest reading suggests the manufacturing economy is in downturn territory, after more-or-less treading water in October.
"Output fell for the first time in seven months following the sharpest retrenchment in new order intakes since February. Ongoing concerns surrounding the economic outlook, costs and weak demand meanwhile led to cutbacks in staffing, purchasing and inventory holdings," S&P Global said.
On London's FTSE 100, housebuilders Vistry and Persimmon fell 3.9% and 1.3% respectively.
RBC Capital Markets downgraded both to 'underperform' from 'sector perform'.
But in a generally positive note on the sector, RBC analysts said the sector offered value and had been oversold since the autumn budget.
"The sector is now trading below tangible book value so whilst the weather outside might be starting to turn frightful, some of the housebuilders' valuations are delightful, and if they are below book, you must have a look," the broker stated in a research note.
The broker said not all housebuilders are the same and investors need to be discerning as it sought to help pick "the crackers from the turkeys," striking a festive theme.
Among FTSE 100-listed names, RBC has 'outperform' ratings on Bellway, Taylor Wimpey and Barratt Redrow, the latter upgraded from 'sector perform'.
Shares in Bellway rose 0.5% and Taylor Wimpey was 1.5% lower, while Barratt Redrow was up 0.3%.
Vistry also faces demotion from the FTSE 100 this week. B&M European Value Retail is another at risk in the quarterly reshuffle and fell back 2.6%.
Elsewhere, Burberry rose 1.6% after Deutsche Bank upgraded to 'buy' from 'hold' while Johnson Matthey jumped 2.0% after JPMorgan lifted its rating to 'neutral' from 'underweight'.
Brent oil was quoted at USD71.85 a barrel late Monday afternoon, down from USD72.65 at the time of the London equities close on Friday. Gold fell to USD2,642.00 an ounce from USD2,660.13.
Tuesday's global economic diary sees the JOLTS job openings survey in the US at 1500 GMT.
Tuesday's local corporate calendar sees results from train stations and airport concessions operator SSP Group, sandwich and salads maker Greencore, package holiday seller On the Beach and high-performance polymer supplier Victrex.
By Jeremy Cutler, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024 Alliance News Ltd. All Rights Reserved.
