SSE Share News (SSE)

LONDON (Alliance News) - Stocks in London ended broadly lower on Thursday after global trade concerns reemerged and a stronger pound hampered gains in the FTSE 100.Renewed trade worries weighed on markets after a report from the Wall Street Journal said federal prosecutors are pursuing a criminal investigation of China's Huawei Technologies for allegedly stealing trade secrets from US partners."As the US takes aim at Huawei, trade concerns returned to the market with vigour; investors are starting to question the progress made in the latest round of US-Sino talks which is hitting sentiment. The markets are fully aware that this latest move by the US could jeopardise the fragile relationship between the US and China. As a result, risk sentiment is falling, denting demand for riskier assets," said City Index analyst Fiona Cincotta."China is unlikely to take this lying down; some form of retaliation is expected and that is making the market nervous," Cincotta added. The FTSE 100 index closed down 27.76 points, or 0.4%, at 6,834.92.The FTSE 250 ended up 50.59 points, or 0.3%, at 18,537.32, and the AIM All-Share closed down 0.68 points, or 0.1%, at 904.47.The Cboe UK 100 ended down 0.3% at 11,605.45, the Cboe UK 250 closed flat at 16,527.34, but the Cboe Small Companies ended down 0.5% at 11,043.39.In Paris the CAC 40 ended down 0.3%, while the DAX 30 in Frankfurt ended down 0.1%. On the London Stock Exchange, Associated British Foods ended as the best blue chip performer, up 7.0% after the Primark clothing chain owner defied the doom-and-gloom surrounding the UK retail sector by reporting a strong performance during the key Christmas period. For the 16 weeks to January 5, AB Food's Primark retail unit saw sales up 4.0% on the prior year, both at constant currency and actual rates, on the back of increased retail selling space. Retail selling space increased by 300,000 square feet since the September with the company now trading from 364 stores. AB Foods now expects to add 900,000 square feet of retail space in the year. "For now Primark just needs to keep doing what it's doing - opening new stores is clearly working, even if doing so seems like a brave move in a rocky retail climate. All-in-all, Primark is in a position some of its rivals can only dream of," said Hargreaves Lansdown analyst Sophie Lund-Yates.Sage Group closed up 5.4% after the accounting software provider said revenue increased in the first quarter of its current financial year as it progressed on its transition to a software-as-a-service company. Sage reported a 7.6% increase in organic revenue for the three months to the end of December to GBP465 million. Organic revenue excludes businesses acquired during the current financial year. The growth reflects an improvement in product sales within the company's Business Cloud accounting software arm, where revenue rose by 9.3% to GBP380 million. Recurring revenue rose by 11% to GBP387 million, underpinned by software subscription growth of 28% to GBP237 million. At the other end of the large cap index, ITV ended as the worst performer, down 5.9% after the broadcaster was double downgraded to Underperform from Buy by Merrill Lynch. The US investment bank said ITV is becoming increasingly is exposed to the threats posed by online streaming service providers, including Netflix and Amazon, as traditional television viewing declines. "New CEO Carolyn McCall has articulated ITV's 'more than TV' strategy last September. The strategy includes GBP60 million of investments, of which GBP10 million in accelerating Direct-to-Consumer revenues. However, this figure excludes additional subscription video on-demand content. With Netflix, Amazon and Sky's NowTV already well penetrated, we think ITV's revamped SVOD offering will struggle to make inroads if it does not contain some high-end exclusive content," analysts at Merrill Lynch noted. SSE and Ashtead Group closed down 3.2% and 2.8% respectively after the stocks went ex-dividend, meaning new buyers no longer qualify for the latest dividend payout. The pound was up, quoted at USD1.2920 at the London equities close, against USD1.2867 at the close Wednesday. "The pound has crept higher after Theresa May survived yesterday's no-confidence vote, but political fear still exists. The UK is set to leave the EU, and unless a new deal is reached and backed, it looks like we are heading for a no deal Brexit, but the pound doesn't seem to reflect that. Some traders are caught up with the chatter of an extension to Article 50, and the talk of a second referendum, but for the time being we are headed towards a no deal scenario," said David Madden, market analyst at CMC Markets.Hopes of no-deal Brexit appeared to have diminished, after Labour opposition leader Jeremy Corbyn said he would not meet May unless a no-deal is off the table.Corbyn confirmed that Labour will table an amendment setting out its favoured outcome of a customs union with a UK say over future trade deals, a close single market relationship and safeguards for rights.Following the win, May began talks party leaders and other MPs for discussions to get a Parliamentary consensus and break the Brexit stalemate.The PM is scheduled to "table an amendable motion and to make a statement about the way forward" next Monday, with a debate on the motion due on January 29.Investors are pricing for a softer Brexit on reduced hopes of a no deal Brexit taking place on March 29.Additionally, it emerged that Chancellor Philip Hammond told business leaders on Tuesday that the 230-vote defeat for May's plans had raised the question of whether a no-deal Brexit could now be taken off the table.And a transcript of the call, obtained by the Daily Telegraph, recorded that the chancellor said an amendment expected to be tabled by Tory backbenchers including Nick Boles on Monday could pave the way for Parliament to vote to "rescind" Article 50.Though he acknowledged that the government was "not in control" of events on Monday, Hammond stressed: "It is not within their power to mandate any future course of action, that would be for a Government to do".The euro was down, at USD1.1385 at the European equities close, against USD1.1402 late Wednesday as inflation cooled to an eight-month low.Eurozone consumer price inflation slowed in December to its lowest level in eight months, latest figures from the statistical office Eurostat confirmed.The consumer price index rose 1.6% year-on-year following a 1.9% increase in November. The latest inflation rate was the lowest since April, when the rate was 1.3%.Stocks in New York were mixed at the London equities close amid disappointing earnings from banking giant Morgan Stanley.Uncertainty about the impact of the ongoing US government shutdown and the outlook for Brexit are contributing to choppy trading on Wall Street. The DJIA was down 0.1%, the S&P 500 index up 0.2% and the Nasdaq Composite 0.2% higher.Morgan Stanley reported fourth-quarter net income applicable to the company's shareholders of USD1.36 billion or USD0.80 per share, up sharply from USD473 million or USD0.26 per share in the year-ago period.Excluding items, adjusted earnings for the quarter were USD0.73 per share, compared to USD0.84 per share in the year-ago period.On average, 23 analysts polled by Thomson Reuters expected the company to report earnings of USD0.92 for the quarter. Analysts' estimates typically exclude special items.Morgan Stanley shares were down 5.3% in New York. On the economic front, a report from the Labor Department unexpectedly showed a modest decrease in first-time claims for unemployment benefits in the week ended January 12.The report said initial jobless claims edged down to 213,000, a decrease of 3,000 from the previous week's unrevised level of 216,000. Economists had expected jobless claims to inch up to 220,000.Still to come in the US earnings calendar, credit card company American Express and online video streaming service Netflix will report earnings after the closing bell in New York. Brent oil was quoted at USD60.89 a barrel at the London equities close from USD60.70 at the close Wednesday. OPEC-led supply cuts may tighten markets in 2019, but doubts persist over the effectiveness of the production cuts amid increasing concerns of a global economic slowdown."Oil prices have bucked their recent uptrend, despite the larger than expected production cut from Saudi Arabia. OPEC's monthly report signalled a clear problem for the cartel, for while they are cutting production, it is the non-OPEC nations which continue to raise production, increasing their market share. 2019 looks set to be dominated by the growing differential between demand and supply, with OPEC aware of the fact that at current levels there is too much global supply to prop up prices," said IG chief market analyst Chris Beauchamp.Gold was marginally lower, quoted at USD1,291.10 an ounce at the London equities close against USD1,293.82 late Wednesday.The economic events calendar on Friday has Japan industrial production data at 0430 GMT, eurozone current account numbers at 0900 GMT and UK retail sales figures at 0930 GMT. The UK corporate calendar on Friday has trading statements from construction company Henry Boot, currency manager Record and sandwich maker Bakkavor.