(Alliance News) - Stock prices in Europe were largely in negative territory on Friday afternoon, amid some profit taking after a buoyant week so far, as attentions turns back across the Atlantic, ahead of the normally key monthly US jobs report and as Joe Biden closes in on presidency.
The FTSE 100 index of London large-cap stocks was down 5.94 points, or 0.1% at 5,900.24 at midday Friday. The FTSE 250 lost 49.52 points, or 0.3%, at 17,879.01. The AIM All-Share was down 0.69 of a point, or 0.1%, at 978.28.
The Cboe UK 100 index was down marginally at 586.31 at midday. The Cboe 250 was down 0.4% at 15,090.53. The Cboe Small Companies rose 0.8% at 9,751.86.
The CAC 40 stock index in Paris lost 0.6% on Friday by early afternoon, and Frankfurt's DAX 30 was down 0.9%.
"It's been an uphill battle today with the bulk of the market in pre-weekend de-risking mode, as investors view rallies as a good opportunity to sell risk," AxiCorp analyst Stephen Innes said.
"While low liquidity conditions are not helping matters, potentially exaggerating price moves, especially to the downside where bids are notably lacking."
Democrat candidate Biden has taken the lead in the US state of Georgia, according to a report by the broadcaster CNN.
Biden currently has an advantage of just 917 votes over US President President Donald Trump in Georgia, CNN reported on Friday.
Most votes have been counted in the state, though a few thousands ballots might still be outstanding.
If Georgia is called for Biden and Arizona holds for the Democrat, this would secure him the 270 electoral college votes needed to move into the White House.
On Wall Street on Friday, the Dow Jones Industrial Average is called 0.5% lower and the S&P 500 down 0.7%. The tech-heavy Nasdaq Composite is called down 1.0%.
The dollar was lower across the board midday Friday. The pound was quoted at USD1.3129, up from USD1.3097 on Thursday evening.
The euro was up at USD1.1875, up from USD1.1820. The dollar also was down against the yen, at JPY103.23 from JPY103.71 late Thursday in London.
Despite the profit taking on Friday morning, AJ Bell Investment Director Russ Mould noted it has been a positive week for global equities.
"It's an interesting change of fortunes with investors feeling nervous only a week ago. As it currently stands, the FTSE 100 is on track to end the week nearly 6% ahead and the S&P 500 has already rallied 7% in the first four days of the week," Mould said.
Mould also noted that M&A activity injected "some fizz" into London markets on Friday.
RSA Insurance lost 2.5% by midday Friday, having leapt 40% higher late Thursday. It backed a GBP7.2 billion takeover proposal from a two-headed consortium. The company on Thursday had confirmed Canadian insurer Intact Financial and Danish insurer Tryg have made a proposal to buy the FTSE 100-listed firm and divide it up between them.
The proposal, RSA said, comprises 685 pence in cash per RSA share, plus payment by RSA of the announced interim dividend of 8 pence per share. RSA shares were priced at 653.00p midday Friday.
"RSA's approach from Canada's Intact and Denmark's Tryg has excited the market with investors bidding up shares in Aviva, Legal & General and Prudential in the hope that there could be further consolidation in the market," Mould said.
Aviva, Legal & General and Prudential rose 2.5%, 0.5% and 1.0%, respectively. M&G was up 1.1%.
Urban&Civic soared 64% by midday Friday. The property company has agreed to a GBP506.0 million takeover by healthcare charity Wellcome Trust. The 345 pence per share offer is a 64% premium to Urban&Civic's 211.0p closing price on Thursday and above Urban&Civic's EPRA net asset value on September 30 of 343.2p.
The stock was trading at 345.50p on Friday.
The acquisition is conditional on gaining at least 75% in shares at the upcoming court meeting, as well as the scheme being sanctioned by the Court of Session at Edinburgh. So far, Wellcome has obtained irrevocable acceptances for around 10.3 million shares in Urban&Civic reflecting 7.1% of the group's issued share capital.
Elsewhere in London, blue-chip luxury fashion chain Burberry was up 1.7%, one of the FTSE 100's best performers.
This was after Swiss peer Richemont, owner of jewellery brands such as Cartier and Van Cleef & Arpels, posted a hefty 68% first-half profit fall but reported better trading conditions in the second quarter alone.
Overall, first-half sales were down 26% but the second-quarter decline was just 5%.
Richemont shares were up 8.5% in Zurich.
Brent oil fetched USD39.72 midday Friday, down from USD40.87 at the London equities close on Thursday.
Gold prices were slightly higher Friday. The precious metal was quoted at USD1,956.52, up from USD1,946.20.
Still to come on Thursday are the US unemployment figures for October at 1330 GMT.
"If investors weren't dealing with enough, there's also a nonfarm jobs report to look forward to this afternoon. Whether or not it breaks through is another matter entirely. Nevertheless, analysts are looking for a month-on-month decline in the headline figure, from 661,000 to 595,000, but with the unemployment rate also dropping, from 7.9% to 7.7%," said SpreadEX analyst Connor Campbell.
The ADP jobs report on Wednesday, a precursor, showed US private sector companies added jobs at a slower pace than expected in October.
By Eric Cunha; ericcunha@alliancenews.com
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