London close: Stocks slip as US jobless claims top expectations

(Sharecast News) - London's stock markets experienced a modest decline on Thursday, as the day unfolded with a pronounced lack of significant market-moving developments.

The FTSE 100 edged down by 0.03%, closing at 7,722.74 points, while the FTSE 250 saw a marginal dip of 0.01% to finish at 19,719.16 points.

In currency markets, sterling was last down 0.46% on the dollar, trading at $1.2739, while it declined 0.16% against the euro to change hands at €1.1506.

"The period between Christmas and New Year's is not typically known for a significant influx of market-moving news; however, the Treasury rally on Wednesday, supported by the success of the five-year stop-through, carried notable weight," said SPI Asset Management managing partner Stephen Innes.

"The recent surge in buying activity in stocks and bonds is primarily linked to the widespread anticipation of lower yields in 2024, propelled by the expected rate cuts from the Federal Reserve.

"However, a significant unresolved aspect is the market's pricing of these rate cuts, which appears notably more aggressive than indicated in the December dot plot."

Initial jobless claims top forecasts in the US

In economic news, the latest jobless claims data out of the US topped expectations, indicating a slightly higher level of unemployment.

For the week ended 23 December, a total of 218,000 new claims for unemployment were filed, surpassing consensus forecasts of 210,000.

Additionally, the previous week's initial claims figure was revised upward from 205,000 to 206,000.

The four-week moving average - intended to provide a more stable view of initial jobless claims - stood at 212,000, showing a marginal decrease from the revised figure of 212,250 in the prior week.

On the other hand, continuing jobless claims for the week ended 16 December total;ed 1.875 million, in line with market expectations.

The initial figure for the prior week was revised downward from 1.865 million to 1.861 million.

Meanwhile, in France, the latest unemployment claims data for November displayed a notable improvement.

Only 5,200 more people filed for unemployment in mainland France - a significant decline compared to the previous month, which saw a rise of 9,200 individuals seeking unemployment benefits.

RHI Magnesita jumps, Sondrel plummets on payroll issues

On London's equity markets, a scarcity of market-moving news impacting major stocks was the theme of the day, although RHI Magnesita was a standout on the FTSE 250, registering a gain of 12.55%.

On the downside, Bank of Georgia Group experienced a modest decline of 0.9%, after announcing two financing agreements aimed at supporting sustainable initiatives and economic growth in Georgia.

One agreement involved a multicurrency loan of €50m with the European Investment Bank (EIB), while the other consisted of two subordinated facility agreements, totalling €45m, with the Green for Growth Fund (GGF) Southeast Europe and the European Fund for Southeast Europe.

Sondrel Holdings plummeted 53.7% after the UK semiconductor designer asked its staff to defer wages due to a contract payment delay, affecting its December payroll.

The delayed payments, amounting to £1.7m, were expected to be received in January and February.

Asiamet Resources was off 3.75% after an update on its feasibility-stage BKM copper project in Indonesia.

The company reported progress in the debt finance process, but was awaiting a credit committee decision on lead arranger status in the new year.

Meanwhile, North American coal miner Bens Creek Group slid 8.08% after reporting an EBITDA loss of $6.5m for the first half, slightly wider than the $6.4m in the same period in 2022.

On the upside, Zanaga Iron Ore Company jumped 14.47% after signing a memorandum of understanding with China Machinery Engineering Corporation (CMEC) for hydroelectric power solutions related to the Zanaga Iron Ore Project.

The agreement also included provisions for project funding.

Insig AI, a machine learning and data science specialist, was ahead 5.56% after announcing its listing on the United Nations Climate Risk Tool Dashboard.

Investment company Gunsynd gained 1.11% after investing CAD 0.35m (£0.2m) into 1911 Gold Corporation, a junior gold development and exploration company based in Manitoba.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 7,722.74 -0.03%

FTSE 250 (MCX) 19,719.16 -0.01%

techMARK (TASX) 4,295.56 -0.32%

FTSE 100 - Risers

Scottish Mortgage Inv Trust (SMT) 808.40p 1.30%

GSK (GSK) 1,461.20p 0.80%

Prudential (PRU) 878.20p 0.66%

Unilever (ULVR) 3,812.50p 0.66%

Rio Tinto (RIO) 5,860.00p 0.60%

BAE Systems (BA.) 1,101.50p 0.59%

Pearson (PSON) 964.80p 0.58%

Smith & Nephew (SN.) 1,076.50p 0.47%

Anglo American (AAL) 1,984.80p 0.46%

AstraZeneca (AZN) 10,574.00p 0.44%

FTSE 100 - Fallers

BT Group (BT.A) 122.95p -2.50%

Flutter Entertainment (CDI) (FLTR) 13,840.00p -1.53%

Beazley (BEZ) 524.00p -1.13%

Fresnillo (FRES) 590.20p -1.11%

Endeavour Mining (EDV) 1,781.00p -1.00%

Land Securities Group (LAND) 716.40p -1.00%

Smurfit Kappa Group (CDI) (SKG) 3,124.00p -0.89%

Entain (ENT) 996.40p -0.86%

Smith (DS) (SMDS) 310.00p -0.83%

Burberry Group (BRBY) 1,411.50p -0.77%

FTSE 250 - Risers

RHI Magnesita N.V. (DI) (RHIM) 3,564.00p 11.24%

Fidelity China Special Situations (FCSS) 211.50p 3.93%

Trustpilot Group (TRST) 151.10p 3.14%

NextEnergy Solar Fund Limited Red (NESF) 93.00p 2.76%

Ferrexpo (FXPO) 84.70p 2.60%

Abrdn Private Equity Opportunities Trust (APEO) 464.00p 2.32%

Worldwide Healthcare Trust (WWH) 311.50p 2.30%

Essentra (ESNT) 169.80p 2.29%

Carnival (CCL) 1,317.50p 2.21%

Auction Technology Group (ATG) 530.00p 2.12%

FTSE 250 - Fallers

Diversified Energy Company (DEC) 1,110.50p -4.39%

Grainger (GRI) 268.60p -2.26%

Direct Line Insurance Group (DLG) 183.85p -2.08%

NCC Group (NCC) 130.00p -1.96%

Cranswick (CWK) 3,840.00p -1.59%

Redde Northgate (REDD) 361.50p -1.50%

Bodycote (BOY) 600.00p -1.49%

Moonpig Group (MOON) 159.60p -1.48%

Grafton Group Ut (CDI) (GFTU) 924.10p -1.45%

Wetherspoon (J.D.) (JDW) 808.50p -1.40%