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(Alliance News) - London share prices were mixed early Friday, with equities expected to see a muted end to the week amid a half-day of trading in New York.
The pound, meanwhile, faded from a three-month high against the dollar, though the euro was on the up.
The FTSE 100 index opened up 5.20 points, 0.1%, at 7,471.80, but the FTSE 250 was down 80.64 points, 0.4%, at 19,459.70. The AIM All-Share added just 0.23 of a point at 844.62.
The Cboe UK 100 traded flat at 747.74, the Cboe UK 250 was down 0.5% at 16,847.92, and the Cboe Small Companies was marginally lower at 12,966.12.
In European equities early Friday, the CAC 40 index in Paris and the DAX 40 in Frankfurt both inched up 0.1%.
Rising Covid-19 cases in China and the prospect of a slowdown of the pace of the Federal Reserve's interest rate hikes have provided a conflicting backdrop for equity markets this week - the first negative, the second positive.
Friday is expected to be a quieter session, as New York only returns for an abbreviated session, closing at 1pm local time - 1800 GMT.
Asian stocks also were mixed on Friday, The Nikkei 225 in Tokyo ended 0.4% lower. In China, the Shanghai Composite added 0.4%, but the Hang Seng in Hong Kong was down 0.5%. The S&P/ASX 200 in Sydney closed up 0.2%.
"Asian markets are mixed to lower amid subdued trading as investors assess prospects for further, but potentially slower, interest rate hikes among major central banks, as well as rising Covid case numbers in parts of China," analysts at Lloyds Bank commented.
The pound was quoted at USD1.2106 early Friday in London, down from USD1.2125 at the London equities close on Thursday. The pound has faded after spiking to USD1.2153 on Thursday, its best level since August 11.
The euro stood at USD1.0420 shortly after the European equities open on Friday morning, rising from USD1.0405 late Thursday. Against the yen, the dollar was trading at JPY138.64, up from JPY138.49.
"The recovery in EUR-USD since the beginning of November is likely to be mainly due to the USD correction. However, the EUR negative arguments are also getting increasingly less convincing," analysts at Commerzbank commented.
"A recession in Germany and in the eurozone remains probable but it is unlikely to get as bad as had been expected only a few months ago. Concerns that the ECB might not hike its key rate sufficiently in view of economic risks are therefore likely to ease."
Germany's economic growth was stronger than expected in the third quarter, figures from Destatis showed.
Germany's gross domestic product grew 1.3% on an annual basis in the three months to September 30, improving on the first estimate, which had said Europe's largest economy expanded by 1.2%.
Quarter-on-quarter, GDP grew 0.4% in the third quarter of 2022. It is a third successive quarterly GDP rise for the nation. The German economy had risen 0.1% in the second quarter and 0.8% in the first.
On an annual basis, GDP has now expanded for six quarters in-a-row.
Separate figures from GfK showed German consumer confidence has improved. GfK forecasts its tracker to tick up to negative 40.2 points in December, from negative 41.9 points in November.
In London, Devro shares shot up 60% to 307.00 pence. It has agreed to a takeover by food manufacturing company Saria.
The deal values the sausage casings maker's equity at GBP540 million and gives it an enterprise value, including debt, of GBP667 million. Saria, which manufacturers products for human and animal consumption, will pay 316.1p per Devro share, a 65% premium to its 192.0p closing price on Thursday.
SSE added 1.1% after striking a deal to sell a stake in its transmission arm.
The Ontario Teachers' Pension Plan Board will buy into the unit. SSE expects GBP1.47 billion in proceeds for the stake sale in the electricity transmission network business.
SSE a year ago said it planned to sell 25% stakes in each of its SSEN Transmission and SSEN Distribution arms. The process to sell a stake in the electricity distribution business is expected begin "in early 2023".
At the other end of the large-cap index, housebuilders fell, after a bearish research note from German bank Berenberg. Persimmon fell 2.3%, Taylor Wimpey lost 2.1% and Barratt dropped 1.2%. Berenberg lowered price targets for the trio.
On AIM, finnCap tumbled 22%. It said late Thursday it has ended takeover discussions with stockbroking peer Panmure Gordon.
In October, London-based finnCap confirmed it had received a non-binding takeover proposal from Panmure Gordon.
At the time, Panmure had until close of play on November 15 to decide whether or not it planned to make an offer. Earlier this month, the deadline was extended to December 13.
On Thursday, finnCap said: "As a result of initial discussions, the boards of directors of both finnCap and Panmure Gordon believed that there was sufficient cultural fit and strategic and commercial logic to merit examining a combination of the two businesses.
"However, following further discussions and in light of each company's strengths as independent entities, each board has concluded that it is not possible to find mutually acceptable terms or structure for such a combination."
Brent oil was quoted at USD85.84 a barrel early Friday, up from USD85.08 late Thursday. Gold fetched USD1,753.27 an ounce, down from USD1,756.76.
By Eric Cunha; ericcunha@alliancenews.com
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