(Alliance News) - Stock prices in London turned lower at midday on Friday, with major power conflict top of mind ahead of the first call between the leaders of the US and China since Moscow's invasion of Ukraine.
The FTSE 100 index was down 53.42 points, or 0.7%, at 7,331.92. The mid-cap FTSE 250 index was down 186.34 points, or 0.8%, at 20,807.35. The AIM All-Share index was down 2.31 points, or 0.2%, at 1,023.02.
The Cboe UK 100 index was down 0.8% at 728.41. The Cboe 250 was down 1.1% at 18,337.15, and the Cboe Small Companies up 0.3% at 14,716.55.
In mainland Europe, the CAC 40 stock index in Paris was down 1.4% while the DAX 40 in Frankfurt was 1.5% lower.
New York was pointed to a lower open on Friday. The Dow Jones Industrial Average was called down 0.6%, the S&P 500 down 0.7%, and the Nasdaq Composite down 0.8%, based on futures trading. The indices closed up 1.2%, 1.2% and 1.3% respectively on Thursday.
In a call later Friday, US President Joe Biden will warn his counterpart Xi Jinping that China will face "costs" for "any actions it takes to support Russia's aggression", Secretary of State Antony Blinken said.
Beijing has refused to oppose Russia at the United Nations, nor even to use word the 'invasion' three weeks after Russian troops went into Ukraine, while stressing its opposition to punishing sanctions imposed by the West on Moscow.
After accusing Putin of being a "war criminal", Biden hopes China will use "whatever leverage they have to compel Moscow to end this war", the top US diplomat said.
Rescue workers searched desperately for any survivors buried beneath the rubble of Mariupol's bombed-out theatre Friday, as Russia's forces pounded residential areas across Ukraine, stoking allegations of war crimes.
In the wake of the attack, Blinken also said it was "difficult to conclude" that Vladimir Putin's regime had not engaged in war crimes by targeting civilians.
Russia has routinely denied that it is targeting civilians, claiming without evidence that hardline Ukrainian nationalists blew up the theatre in Mariupol.
"Investors are likely to cautiously monitor the key discussions between the US and China, as presidents Biden and Xi Jinping are set to meet later today to discuss Beijing's involvement in the war, for the first time since the beginning of the conflict," commented ActivTrades analyst Pierre Veyret.
In the FTSE 100, Polymetal International was the best performer, up 1.5%. The Russian gold miner said it has appointed four new independent non-executive directors to its board after six non-execs resigned last week. Polymetal will be removed from the FTSE 100 and all FTSE indices, effective from Monday.
Glencore was up 1.0% after HSBC started coverage on the Swiss-based miner and commodities broker with a 'buy' rating.
In the FTSE 250, Softcat was the best performer, up 4.0% after Berenberg upgraded the IT infrastructure services provider to 'buy' from 'hold'.
Conversely, Workspace Group was down 3.0% after Bank of America downgraded the flexible-office-space provider to 'neutral' from 'buy'.
Investec was down 1.7%. The Anglo-South African financial services company lifted its full-year earnings guidance as top-line growth continued to gain traction and impairment charges dropped significantly.
Investec expects its adjusted earnings per share to range between 51 pence and 55p for the financial year ending March 31, up sharply from 28.9p in the prior year. The group in November forecast an increase to between 48p and 53p.
Thanks to net inflows of GBP2.0 billion and positive market conditions, Investec said its Wealth & Investment business boosted funds under management by 6.6% year-on-year to GBP61.9 billion for the 11 months ended February 28.
It warned though that the current market volatility may hit funds under management by the March year-end.
Elsewhere in London, Ted Baker was up 17% after Sycamore Partners Management confirmed a Sky News press report that it was in early stages of considering making a possible cash offer for the fashion retailer.
Sycamore Partners said it was considering a possible cash offer for Ted Baker but noted there was no certainty any offer would be made.
In response, Ted Baker confirmed that it had not received any approach from Sycamore. Further, the retailer said it was confident in its independent prospects and would evaluate any offer against the shareholder value creation which it believes can be delivered as a standalone company.
Rival fashion retailer Superdry was up 2.5%, while AIM-listed lifestyle brand Joules Group gained 13% in a positive read-across.
"We would not be surprised if private equity firms targeted these brands, now in deep value territory," Shore Capital's Eleonora Dani said.
The pound was quoted at USD1.3130 at midday on Friday, down from USD1.3155 at the London equities close Thursday.
The euro was priced at USD1.1045, lower against USD1.1113. Against the Japanese yen, the dollar was trading at its highest levels since 2016, quoted at JPY119.04 in London, up from JPY118.44 late Thursday.
Brent oil was quoted at USD107.51 barrel Friday at midday, up from USD106.62 late Thursday. Gold stood at USD1,938.46 an ounce, lower against USD1,942.97.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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