Last checked at 
(Alliance News) - Stock prices in London closed mixed on Thursday, the final full trading day of a mixed year, though the FTSE 100 is still on track to deliver a gain of more than 3% for 2023.
Keeping a lid on the large-cap index on Thursday were share price falls for oil majors, as the situation in the Red Sea, which threatened to turn into something more tumultuous, calmed.
"Oil prices fell as global shipping giants prepared to resume navigation through the Red Sea despite ongoing missile attacks from Houthi rebels. The decision to resume operations reflects a calculated risk, betting on the success of a new multinational maritime task force, Prosperity Guardian, commissioned to safeguard the region. On Wednesday, Danish shipping company Maersk revealed its intention to resume scheduling vessels for the Suez Canal via the Red Sea in the coming weeks following a temporary pause," SPI Asset Management analyst Stephen Innes commented.
The FTSE 100 index closed down just 2.21 points at 7,722.74. So far this year, the FTSE 100 has added 3.6%.
The FTSE 250 fell only 1.59 points to 19,719.16, though the AIM All-Share rose 0.63 of a point, 0.1%, at 763.66.
The Cboe UK 100 ended down marginally at 771.27, the Cboe UK 250 fell 0.2% at 17,175.24, though the Cboe Small Companies rose 0.5% at 14,890.48.
The CAC 40 in Paris fell 0.5%, while the DAX 40 in Frankfurt ended down 0.2%.
Sterling was quoted at USD1.2741 late Thursday in London, down from USD1.2797 at the London equities close on Wednesday. Against the yen, the dollar was quoted at JPY141.08, down versus JPY141.88. The euro traded at USD1.1078, down from USD1.1115.
The dollar clawed back some ground versus the euro and pound on Thursday, but remains some way off where it stood around this time last year.
In recent weeks, the pound and euro have capitalised on dollar weakness, though this may change if UK and eurozone data continue to come in tepid.
DHF Capital analyst Ralph Ratterman commented: "The rapidly deteriorating European economy, with countries like Germany facing recession risks, could compel the ECB to reconsider its current policy in its upcoming meeting. Market expectations are leaning towards an early ECB rate cut, as economic indicators suggest the necessity for such action. In the UK, recent data showing a contracting economy and decreasing inflation might push the BoE toward rate cuts. If inflation continues to decline and economic conditions worsen, the BoE might be prompted to act sooner."
The greenback's early moves in 2024 could be dictated by the latest US jobs data, due for release a week on Friday.
AJ Bell analyst Danni Hewson commented: "As is usual at the start of a month, the latest monthly jobs figures from America will dominate the attention of markets, not forgetting economists, politicians and central bankers.
"America added 199,000 jobs [in November], a fraction below the 12-month average run rate of 229,000. Also watch the final revision to the October number of 150,000 and the preliminary revision to November's reading. The final net revision has been downward for every month except one so far in 2023 and that is often seen as a harbinger of a slowdown or recession (just as upgrades are seen as a positive sign)."
Gold was quoted at USD2,075.46 an ounce late Thursday, lower than USD2,080.29 on Wednesday. Oil prices fell as shipping disruption in the Red Sea eased. Brent crude fetched USD78.70 a barrel, lower than USD80.15.
French shipping company CMA-CGM has resumed some transit through the Red Sea, days after Danish group Maersk announced it would return as a US-led naval coalition is now policing the maritime route against Yemeni rebel attacks. The attacks prompted shipping companies to reroute vessels around the southern tip of Africa earlier this month – a longer and more expensive trip than the Red Sea route that links up with the Suez Canal.
In London, Shell shares fell 0.3%, while BP lost 0.4%.
Elsewhere, Scottish Mortgage Investment Trust added 1.2%. The investment firm, which has some of the largest US tech listings among its portfolios, rose amid the growing conviction that the Federal Reserve will soon cut interest rates.
US stocks were also on the up. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite were all 0.1% higher around the time of the European close.
The Dow traded at a record high, while the S&P was around 25 points off its best-ever level.
Capex.com analyst George Pavel commented: "The US stock market could continue to see gains with investors showing a positive sentiment overall. While the lower volumes that the market is seeing during the last few trading sessions of the year could weigh on its advances, investors' return from the holiday period could drive volumes and prices to new highs. The market has been able to recover strongly since the end of October with more prominent expectations of interest rate cuts early in 2024. The more dovish stance of the Federal Reserve could also support a stronger performance and a more risk-on sentiment.
"The technology sector could also continue to drive gains thanks to the strong developments in the AI field and the higher demand for semiconductors. The sector has recorded large gains this year and could continue to see good prospects although tensions between the US and China could create some risks. Other sectors could benefit from the downtrend in treasury yields and expectations of lower interest rates as financing costs decline, offering more room for companies to grow."
Back in London, Corcel surged 23%. The mining and mineral resource development company updated on the drilling results for the Tobias-14 well in the onshore block KON-11 in Angola, where it has a 20% working interest. The well encounters a full Binga reservoir section with identical zones as seen in the previous TO-13 well, with oil showing throughout.
Corcel and operator Sonangol believe the results "confirm the ability to reactivate production through an early production system and imply significant hydrocarbon potential remaining".
On Friday, financial markets in London close early at 1230 GMT.
By Eric Cunha, Alliance News news editor
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
