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(Alliance News) - Stock prices in London ended in the red on Thursday, drifting lower during what was a muted session due to markets in the US being closed over Thanksgiving.
"Without a US intervention, the European markets struggled to put on a worthwhile display this Thursday afternoon, too busy mulling over what they're thankful for," Spreadex analyst Connor Campbell explained.
The FTSE 100 index lost 0.4%, or 28.16 points to close at 6,362.93. The FTSE 250 gave back 0.9%, or 173.05 points, at 19,396.34 but the AIM All-Share closed 0.6% higher, rising 6.27 points to 1,038.03.
The Cboe UK 100 index closed down 0.4%, or 2.49 points, at 633.56. The Cboe 250 ended down 1.1% at 16,743.28, and the Cboe Small Companies lost 0.5% at 11,449.54.
The CAC 40 closed fractionally higher on Thursday, while the DAX 30 in Frankfurt ended up 0.1%.
Traders that did take part in the muted session on Thursday turned to profit taking, making the most of Tuesday's bumper gains for equities, noted CMC Markets analyst David Madden.
"The mood was bullish earlier in the week as traders welcomed the upbeat coronavirus vaccine news from AstraZeneca-Oxford University," Madden explained.
"Hopes that there would be a straightforward transition of power from President Trump to President-Elect, Joe Biden, was also a factor in the upward move. The FTSE 100 is underperforming when compared with markets in mainland Europe as oil, mining and banking stocks are in the red."
NatWest shed 2.0%, Barclays lost 1.6% while oil major BP fell 1.5%.
Doubts over the efficacy of the AstraZeneca and Oxford University jab emerged on news the dose that was shown to be 90% effective was only tested in people aged 55 and under, according to a US official.
Moncef Slaoui, the scientific head of Operation Warp Speed – the programme to supply the US with vaccines – told US reporters that the half-dose regime, which was discovered by accident, was only given to younger age groups.
Oxford's overall efficacy from two different dosing regimes in a phase three trial was announced last week at a combined figure of 70%. A half dose followed by a full dose was found to be 90% effective according to a subset of data, but efficacy was 62% for people given two full doses.
AstraZeneca shares lost 0.7% on Thursday.
Aviva also ended in the red, losing 0.2%. The insurer said it was making progress on its company simplification strategy and announced a new sustainable dividend policy.
Aviva declared a 7.0 pence per share interim dividend. The insurer currently expects to recommend a final 2020 dividend of 14p per share, subject to a decision to be taken in March 2021. The expected 2020 total dividend of 21.0p per share is then expected to grow by low to mid-single digits, it said. However, the expected total dividend for 2020 is 32% lower than the 30.9p paid out in 2019.
Paddy Power owner Flutter Entertainment topped the blue-chip index, up 4.9%. Earlier this week, the Betting & Gaming Council welcomed UK government clarification that even in the most restrictive tier 3 curbs, bookies will be allowed to lift shutters once again.
The government on Thursday outlined which tiers of restrictions await English regions following the end of the current one-month lockdown.
Much of England is facing tough coronavirus restrictions under the new post-lockdown tier arrangements, with bans on households mixing indoors and curbs on pubs and restaurants.
An online postcode checker went live before the official announcement to Parliament and indicated that Manchester, Birmingham, Hull, Newcastle, Bristol and Kent were among the places facing the toughest restrictions, while London and Liverpool are being placed in tier 2.
The new system will apply from December 2 after England's blanket lockdown ends and restrictions have been tightened after government scientific advisers warned that previous measures had not been effective enough.
Back in London, the pub sector struggled for much of the day on Thursday.
"The rebound in the pub and bar sector, sparked by vaccine breakthroughs, has fizzled out with the dawning realisation that the end of lockdown will offer little short term reprieve," Hargreaves Lansdown analyst Susannah Streeter said.
Marston's and Fuller, Smith & Turner lost 4.2% and 5.4%, respectively, while Mitchells & Butlers shed 0.7% after announcing job cuts.
Birmingham-based Mitchells said it was forced to slash around 1,300 jobs.
It swung to a pretax loss of GBP123 million in the financial year that ended September 26 from a GBP177 million profit the year before. Mitchells & Butlers's revenue decreased 34% to GBP1.48 billion from GBP2.24 billion.
On the AIM market, boohoo Group rose 3.4%, as investors took heart from the fast fashion retailer adding former High Court judge Brian Leveson's oversight to its supply chain probe.
Leveson, famous for chairing the eponymous inquiry into ethics of the UK press in the wake of the phone hacking scandal, will report directly to the boohoo's board. The company said his reports will be published, allowing greater "transparency and further independence to the process".
"The board has committed to deliver real change to the supply chain issues that have been raised this summer by the Sunday Times, Guardian and other media outlets, together with further governance issues that have arisen in recent months," Shore Capital Markets said.
The pound was quoted at USD1.3333 at the London equities close, down from USD1.3382. The euro stood at USD1.1908, down slightly from USD1.1909. Against the Japanese yen, the dollar was trading at JPY104.27, eased from JPY104.38.
A warning from the European Central Bank over the "longer-lasting effects" of the Covid-19 pandemic on Thursday raised hopes that policymakers may increase support measures at the central bank's next meeting in December.
The economic hurt caused by the contagion might have longer-lasting implications than first thought, according to minutes released on Thursday from the October 29 ECB meeting.
"The minutes of the October ECB meeting confirmed that there is a broad majority within the Governing Council in favour of a new round of easing in December," analysts at Oxford Economics said.
Oxford Economics tips the ECB to boost the pandemic emergency purchase programme envelope by another EUR500 billion and extend it to the end of 2021.
An ounce of gold fetched USD1,810.32 at the London equities close, down a notch from USD1,811.61 a day earlier. Brent oil was trading at USD47.77 a barrel, down from USD48.04.
On Friday, US markets close at 1800 GMT, 1300 local time. On the data front, third-quarter GDP numbers from France are released at 0745 GMT before a eurozone consumer confidence print at 1000 GMT.
The corporate calendar has annual results from cocktail bar owner Revolution Bars, half-year numbers from motor dealer Caffyns and a trading statement from newspaper publisher Reach.
By Eric Cunha; ericcunha@alliancenews.com
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