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(Sharecast News) - London stocks closed mixed on Thursday as investors digested a new report on the UK construction sector and monitored political developments in France, while Frasers Group weighed heavily on sentiment after the retailer slashed its profit outlook.
The FTSE 100 index rose 0.16% to end at 8,349.38 points, while the FTSE 250 slipped marginally by 0.02% to end the session at 21,001.06 points.
On the currency front, sterling was last up 0.36% on the dollar to trade at $1.2747, while it weakened 0.16% against the euro, changing hands at €1.2064.
"Bitcoin rallied by 3.5%, to above the $100,000 mark, after president-elect Donald Trump announced Paul Atkins as his head of the Security and Exchange Commission," said IG senior analyst Axel Rudolph.
"Positive sentiment also helped the S&P 500 and DAX 40 to yet more record highs, despite US jobless claims rising above expectations, euro area retail sales falling more than expected and the toppled French government creating political uncertainty in the country."
Rudolph noted that the removal of martial law in South Korea by the president, and OPEC+ maintaining its current oil production levels in the first quarter of 2025, helped crude prices stabilise following recent sell-offs.
"The price of gold, however, dropped on Thursday ahead of Friday's closely watched US non-farm payrolls."
UK construction sector resilient, eurozone construction struggles
In economic news, the UK construction sector showed resilience as S&P Global's construction purchasing managers' index (PMI) rose to 55.2 in November, up from 54.3 in October and surpassing forecasts of 53.4.
The increase was driven by the fastest growth in commercial work in two-and-a-half years.
However, residential construction contracted at its steepest rate since June, and overall growth in new orders slowed.
Employment in the sector rose slightly, though job creation hit a three-month low.
Inflationary pressures intensified, with input costs rising at their fastest pace in 18 months, fuelled by higher raw material and labour costs.
Business sentiment also dipped to its weakest level since October 2023.
In contrast, the eurozone construction sector continued to struggle, with the HCOB PMI falling to 42.7 in November from 43.0 in October, marking a deeper contraction.
New orders experienced a "robust" decline, and business confidence dropped to its lowest since April 2020.
Germany, the bloc's largest economy, saw construction activity contract at its sharpest rate since April.
Housing remained the worst-performing sector, while commercial and civil engineering also softened.
"Germany is dragging down the Eurozone's construction sector," said Tariq Kamal Chaudhry, economist at Hamburg Commercial Bank.
"The German construction industry is struggling due to high interest rates and increased costs, which have significantly reduced demand for new buildings.
"Material shortages and a lack of skilled labour continue to burden the sector."
Germany's manufacturing sector also faced headwinds, as factory orders fell 1.5% in October following a revised surge in September.
Machinery and automotive orders declined, but increases in basic metals and high-tech products helped offset some of the losses.
Domestic demand weakened by 5.3%, while foreign orders grew by 0.8%, buoyed by a strong uptick in non-Eurozone markets.
Across the Atlantic, initial jobless claims in the US rose to 224,000 for the week ending November 30, up from 213,000 the previous week and exceeding expectations of 215,000.
Despite the increase, the labour market remained robust, with the four-week moving average ticking up slightly and ongoing claims declining.
Meanwhile, oil prices edged higher as OPEC+ announced an extension of supply cuts through March 2025, aiming to stabilise the market.
Brent crude rose 39 cents to $72.70 per barrel, while West Texas Intermediate climbed 40 cents to $68.94.
The group also outlined plans to gradually phase out cuts by September 2026.
However, sluggish demand from China and signals of increased US production kept gains in check.
Admiral rises on upgrade, Shell and Frasers in the red
On London's equity markets, Admiral Group shares climbed 3.47% following an upgrade from Deutsche Bank to 'buy' from 'hold'.
Analysts expressed optimism about the UK motor insurance sector, particularly for disciplined and larger players like Admiral.
"With tailwinds to come through to earnings over 2024 to 2026 from UK pricing of 2023, along with improvements in the group's international businesses and the addition of the RSA policies in home and pet, we view the group as strongly positioned to keep growing the top and bottom lines," Deutsche said.
"Trading on a 2025 price-to-earnings of circa 13x versus a historic average closer to the circa 16x, we see re-rating potential."
Diageo advanced 3.29% after Jefferies upgraded the drinks maker to 'buy' from 'hold', raising its price target from 2,300p to 2,800p, citing an improved outlook for the company.
Future soared 12.14% after well-received full-year results, while Watches of Switzerland Group surged 15.43% on strong first-half revenue growth, bolstered by solid demand in the US, despite a dip in profit.
Housebuilder Vistry Group rose 1.29% after announcing a joint venture to build nearly 950 homes near London's Olympic Park, while Vodafone gained 2.55% as the Competition and Markets Authority cleared its proposed merger with Three, conditional on 5G investment commitments.
Wood Group added 3.55%, boosted by securing three major agreements with BP for engineering and project delivery services.
On the downside, Shell dipped 1.5% despite announcing a partnership with Equinor to combine their UK offshore oil and gas assets, aiming to create the North Sea's largest independent producer.
Retailer Frasers Group plunged 10.12% after cutting its profit forecast for the 2024-2025 financial year, citing weaker consumer confidence and a tougher trading environment. Interim profits were down 1.5% year-on-year.
DS Smith fell 2.08% after reporting a 39% decline in half-year adjusted operating profits, impacted by challenging market conditions, including weaker prices and higher costs.
Taylor Wimpey lost 1.08% following a downgrade to "neutral" from "overweight" by JPMorgan Cazenove, while Balfour Beatty slipped 1.46% despite positive earnings guidance and plans for further share buybacks in 2025.
Reporting by Josh White for Sharecast.com.
Market Movers
FTSE 100 (UKX) 8,349.38 0.16%
FTSE 250 (MCX) 21,001.06 -0.02%
techMARK (TASX) 4,712.15 -0.08%
FTSE 100 - Risers
Hiscox Limited (DI) (HSX) 1,141.00p 5.06%
Whitbread (WTB) 2,981.00p 3.87%
Diageo (DGE) 2,428.50p 3.72%
Admiral Group (ADM) 2,715.00p 3.47%
International Consolidated Airlines Group SA (CDI) (IAG) 282.90p 2.84%
Vodafone Group (VOD) 71.58p 2.55%
Intertek Group (ITRK) 4,866.00p 2.31%
BT Group (BT.A) 158.80p 2.19%
Barclays (BARC) 267.55p 2.08%
Aviva (AV.) 489.40p 1.87%
FTSE 100 - Fallers
Frasers Group (FRAS) 662.00p -10.66%
British Land Company (BLND) 368.80p -5.00%
SEGRO (SGRO) 752.20p -2.92%
Smith (DS) (SMDS) 563.00p -2.43%
LondonMetric Property (LMP) 188.30p -2.18%
Unite Group (UTG) 847.00p -2.02%
Associated British Foods (ABF) 2,261.00p -1.87%
Scottish Mortgage Inv Trust (SMT) 966.40p -1.75%
Convatec Group (CTEC) 231.40p -1.62%
Melrose Industries (MRO) 578.00p -1.57%
FTSE 250 - Risers
Watches of Switzerland Group (WOSG) 570.00p 14.23%
Future (FUTR) 1,075.00p 9.69%
PPHE Hotel Group Ltd (PPH) 1,315.00p 8.23%
NCC Group (NCC) 164.20p 4.19%
RIT Capital Partners (RCP) 2,025.00p 4.17%
Just Group (JUST) 161.40p 3.99%
Bakkavor Group (BAKK) 150.50p 3.79%
Pantheon International (PIN) 339.50p 3.35%
Wizz Air Holdings (WIZZ) 1,335.00p 3.09%
Bridgepoint Group (Reg S) (BPT) 356.00p 2.83%
FTSE 250 - Fallers
Discoverie Group (DSCV) 696.00p -4.66%
Pets at Home Group (PETS) 226.40p -4.47%
Genus (GNS) 1,662.00p -4.37%
PayPoint (PAY) 825.00p -3.51%
Energean (ENOG) 987.50p -3.28%
Oxford Instruments (OXIG) 2,070.00p -3.06%
AJ Bell (AJB) 482.00p -2.92%
Trustpilot Group (TRST) 296.00p -2.79%
Harbour Energy (HBR) 253.40p -2.69%
Safestore Holdings (SAFE) 714.00p -2.66%
