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(Alliance News) - European markets stalled on Thursday, monitoring a NATO summit and the West's next steps against Russia as the conflict in Ukraine continues.
The FTSE 100 index closed up 6.75 points, or 0.1%, at 7,467.38. The FTSE 250 ended down 108.43 points, or 0.5%, at 20,893.19, and the AIM All-Share closed down just 0.48 of a point at 1,036.36.
The Cboe UK 100 ended up 0.3% at 744.39, the Cboe UK 250 closed down 0.3% at 18,466.51, and the Cboe Small Companies ended up 0.1% at 15,045.24.
In European equities on Thursday, the CAC 40 in Paris ended down 0.4%, while the DAX 40 in Frankfurt ended down 0.1%.
"It's been a relatively slow start to trading in equity markets as we approach the end of the week, with stocks losing the momentum that's driven the strong recovery in recent weeks," said Craig Erlam, senior market analyst at Oanda.
"The recovery has arguably been overdone considering the invasion of Ukraine is ongoing and commodity prices are at sky-high levels and still prone to surges," said Erlam. "But the fact that Ukraine and Russia remain in negotiations seems to be enough to keep investors on board."
The US and allies upped the pressure on Russia over its invasion of Ukraine at summits in Brussels Thursday, warning Moscow its costs will keep rising the longer the war continues.
Washington unveiled fresh sanctions on Russian lawmakers and defence contractors, and outlined a push by the G7 to freeze Russia out of international organisations and to cut it off from its gold reserves.
US President Joe Biden was the central figure of the summits, which gathered, in succession, the 30 NATO member countries, the G7 powers and then the EU's 27-nation bloc.
With traders remaining cautious as the war rumbles on, the price of safe haven asset gold climbed further. Gold was quoted at USD1,964.88 an ounce at the London equities close Thursday, up against USD1,933.76 at the close on Wednesday.
Precious metals miner Fresnillo topped the FTSE 100, rising 5.7%.
Elsewhere in the commodities space, oil prices softened slightly but remained at elevated levels. Brent oil was quoted at USD118.85 a barrel at the London equities close Thursday, down from USD121.99 late Wednesday.
Stocks in New York were higher at the London equities close, with the DJIA up 0.5%, the S&P 500 index up 0.7%, and the Nasdaq Composite up 0.9%.
The dollar remained supported by hawkish comments from US Federal Reserve Chair Jerome Powell at the start of the week. Against the yen, the dollar was trading at JPY122.16, up compared to JPY121.03 late Wednesday.
"The Japanese yen continues to get crushed with the increasing divergence between the Federal Reserve and the Bank of Japan clobbering the currency to its lowest levels since December 2015," said Michael Hewson, chief market analyst at CMC Markets.
The pound was quoted at USD1.3187 at the London equities close Thursday, down compared to USD1.3201 amid disappointment after Wednesday's UK budget.
Sterling failed to get a boost from Thursday's flash UK services purchasing managers' index registering 61.0 points in March, up from 60.5 in February. The latest reading was above the market forecast, cited by FXStreet, of 58.0.
S&P Global said UK service sector activity increased at a steep and accelerated pace in March, with the removal of Covid-19 restrictions helping to fuel the strongest growth since June of 2021. However, escalating inflationary pressures and concerns related to Russia's invasion of Ukraine led to a slump in business optimism to its lowest since October 2020, S&P noted.
Worries over Ukraine were reflected in the eurozone's own PMI, which decreased to 54.5 points in March, from 55.5 points in February. Respondents said the war in Ukraine weakened demand and caused geopolitical uncertainty, as well as higher costs and renewed supply chain issues.
The euro stood at USD1.1002 at the European equities close Thursday, flat against USD1.1005 at the same time on Wednesday.
In the US, business activity improved strongly in March as supply chain disruptions moderated, though firms have become less confident looking ahead amid concerns over Ukraine and inflation.
The flash US composite output index registered 58.5 points in March, up from 55.9 in February and moving further above the 50.0 line where anything above denotes expansion. The expansion was broad-based and signalled the fastest rise in private sector output since July 2021.
Back in London, Next shares ended down 3.3% after the clothing retailer lowered annual guidance after closing websites in Russia and Ukraine and "moderating" its growth outlook for other overseas units.
For the financial year that ended January 29 revenue rose 31% to GBP4.63 billion from GBP3.53 billion the year before. Pretax profit surged to GBP823.1 million from GBP342.4 million. All in all, financial 2022 was better than expected, the company said.
Looking ahead, however, Next's outlook is a more uncertain. Due to the conflict, it has closed its websites in Ukraine and Russia, earmarking an GBP18 million annual profit hit as a result. It expects annual pretax profit of GBP850 million, down from the previous GBP860 million forecast. This would still represent 3.3% growth from financial 2022.
Schroders fell 3.1% after the stock went ex-dividend, meaning new buyers no longer qualify for the latest payout.
Mid-cap Bridgepoint rallied 9.8% after the private investment firm said it topped expectations as it reported its maiden set of annual results since its float back in July of last year.
For 2021, pretax profit rose 29% to GBP62.6 million, from GBP48.5 million in 2020. Total operating income GBP270.6 million, up 41% from GBP191.8 million. Bridgepoint had total assets under management of EUR32.9 billion at December 31, up 24% from EUR26.6 billion at the same time the year before.
WAG Payment Solutions shares jumped 15% after saying revenue jumped by almost a third, as the recent Main Market listing reported growth in line with expectations for 2021.
The company, also known as Eurowag, processes toll and fuel payments for trucks around Europe.
In 2021, its revenue jumped 31% to EUR1.65 billion from EUR1.25 billion in 2020. Pretax profit, however, fell 39% to EUR17.7 million from EUR28.8 million.
JPMorgan Russian Securities soared 31% after the ruble-denominated MOEX Russia Index rose 4.4% in a shortened reopening session after the Moscow Stock Exchange's month-long closure. The RTS Index, which is calculated in US dollars, ended down 9.0%.
Russia's central bank said Wednesday that trading would be limited to just over four hours and short selling would be banned in an effort to prevent speculative deals. Foreigners are not allowed to sell their shares, as part of measures taken by Russia to stem the flight of foreign currency and capital.
The UK corporate calendar on Friday has trading statements from water firm United Utilities, and electronic products supplier Electrocomponents, and full-year results from engineering company Smiths Group and DIY retailer Wickes.
Friday's economic calendar has UK retail sales at 0700 GMT and the German Ifo index at 0900 GMT.
By Lucy Heming; lucyheming@alliancenews.com
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