(Alliance News) - The FTSE 100 closed lower on Monday, with miners and housebuilders on the decline, though there was some dealmaking impetus among smaller London listings.
The FTSE 100 index closed down 21.98 points, 0.3%, at 7,684.30. The FTSE 250 ended down 57.64 points, 0.3%, at 19,126.92, and the AIM All-Share lost 1.96 points, 0.3%, at 745.81.
The Cboe UK 100 ended down 0.3% at 769.56, the Cboe UK 250 fell 0.5% at 16,487.91, and the Cboe Small Companies ended flat at 14,409.78.
In European equities on Monday, the CAC 40 in Paris closed down 0.5%, while the DAX 40 in Frankfurt ended a touch higher.
In New York, the Dow Jones Industrial Average was slightly higher at the time of the European equities close. The S&P 500 was down 0.1%, while the Nasdaq Composite was up 0.1%.
"European equities opened the week mostly in the red," CFI analyst George Khoury commented.
"Traders could closely monitor upcoming economic indicators such as the US [personal consumption expenditures] inflation, euro area preliminary inflation figures, and China PMIs to gauge global economic health. Moreover, the market is awaiting remarks from Federal Reserve policymakers for insights into upcoming monetary policy decisions."
The monthly PCE data is reported on Thursday. According to FXStreet cited consensus, the headline annual PCE inflation rate is to ease to 2.4% in January, from 2.6% in December. The core reading, the Fed's preferred inflationary gauge, is to ebb to 2.8% from 2.9%.
Exness analyst Wael Makarem commented: "A significant increase in the PCE price index could prompt the Fed to tighten its stance on monetary policy and could further undermine markets' expectations for an interest rate cut, potentially strengthening the US dollar."
The pound was quoted at USD1.2676 late Monday in London, higher compared to USD1.2667 at the equities close on Friday. The euro stood at USD1.0849, up against USD1.0818. Against the yen, the dollar was trading at JPY150.81, higher compared to JPY150.44.
In London, shares in housebuilders closed lower. Taylor Wimpey was among the worst of the lot, down 3.1%.
The Competition & Markets Authority said it is investigating Barratt, Bellway, Berkeley, Persimmon, Redrow, Taylor Wimpey and Vistry, as well as privately-held Bloor Homes. The UK watchdog said the new investigation concerns "suspected sharing of commercially sensitive information" among housebuilders, which could be influencing the build-out of sites and new home prices.
The investigation comes as the CMA published its final report on the housebuilding market, "finding that the complex and unpredictable planning system, together with the limitations of speculative private development, is responsible for the persistent under delivery of new homes". The CMA also noted concerns over estate management charges, as well as the quality of some new housing.
CMA Chief Executive Sarah Cardell noted the need for "significant intervention" within housebuilding to ensure the quality of homes.
The suspected sharing of information is not one of the "main drivers of the problems" highlighted in the CMA's report, Cardell said, adding: "it is important we tackle anti-competitive behaviour if we find it."
Bunzl lost 3.4%.
The London-based distribution and services company cautioned that following a "slower than expected" start to the year in North America, it now expects to deliver slight revenue growth in 2024, at constant exchange rates, driven by acquisitions announced in 2023.
But underlying revenue, which is organic revenue adjusted for trading days, is predicted to decline slightly. Group operating margin is now expected to be slightly below 2023, Bunzl said.
Bunzl said revenue in 2023 edged down 2.0% year-on-year to GBP11.80 billion from GBP12.04 billion, although it remained "significantly ahead" of 2019. This drop is in line with company and market expectations.
However, despite the weaker topline performance, pretax profit rose 10% to GBP698.6 million from GBP634.6 million, as operating margin increased to 8.0% from 7.4%.
Recommending a final dividend of 50.1 pence, the total dividend for 2023 increased by 8.9% to 68.3p from 2022's 62.7p. However, there was no share buyback.
Ocado slumped 7.0% on a report that it will lose out on a "multimillion-pound payment" from partner Marks & Spencer Group.
The Times reported the duo's grocery joint-venture "missed key performance targets".
M&S and Ocado teamed up in 2019 for the Ocado Retail tie-up. Under the terms of the partnership, M&S would have been due to pay Ocado an instalment of around GBP190 million by August, the Times reported. That sum is contingent on performance targets, however.
Elsewhere in London, Wincanton shares jumped 11%.
It said it has accepted a revised, increased bid from CEVA Logistics UK Rose, as it disclosed a further approach had been received from an unnamed third party.
The new offer from CEVA, worth 480p per share, values Wincanton at GBP604.7 million on a fully diluted basis.
The Wiltshire, England-based logistics provider noted this represented a premium of 6.7% to CEVA's original bid of 450p per share, made in January.
CEVA is a subsidiary of CMA CGM, a shipping and logistics company based in Marseille, France.
Hornby jumped another 24%. The model railway maker added to Friday's 33% rise, which came after Sports Direct-owner Frasers Group raised its stake in Hornby, buying a further 11.1 million of its shares. As at Friday, Frasers holds 15.2 million Hornby shares, or 8.9% of the company.
On the decline, shares in miners ended lower on some more sobering news from China, which is a major buyer of minerals. Anglo American gave back 3.3%.
Moody's Investors Service on Friday delivered a fresh blow to the ailing Chinese property market, withdrawing ratings on 10 companies exposed to the sector.
The credit ratings agency said it had made the decision for what it called "business reasons".
Brent oil was quoted at USD82.18 a barrel late in London on Monday, slightly up from USD82.16 late Friday. Gold was quoted at USD2,028.18 an ounce, lower against USD2,033.76.
Tuesday's economic calendar has an inflation reading from Japan overnight, before the latest US durable goods orders data at 1330 GMT, as well as a consumer confidence reading from the world's largest economy at 1500 GMT.
In the local economic calendar, there are annual results from chemicals firm Croda International, student accommodation company Unite and medical devices maker Smith & Nephew.
By Eric Cunha, Alliance News news editor
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