(Alliance News) - Stocks in London ended higher on Monday as investors gear up for the Christmas holiday, with the FTSE 100 back above the 7,600 mark for the first time since July.
The holiday trading sessions tend to see lower volume and increased price volatility.
The FTSE 100 index closed up 41.11 points, or 0.5%, at 7,623.59. The FTSE 250 ended up 169.05 points, or 0.8% at 21,843.35, and the AIM All-Share closed up 5.98 points, or 0.6%, at 946.91.
The Cboe UK 100 ended up 0.6% at 12,915.86, the Cboe UK 250 closed up 0.9% at 19,9722.90, and the Cboe Small Companies ended up 0.6% at 12,115.92.
In Paris the CAC 40 ended up 0.2%, while the DAX 30 in Frankfurt ended down 0.1%.
On the London Stock Exchange, NMC Health ended the standout performer, up 37% after the UAE-focused private healthcare group moved to quell investor fears after coming under siege from Muddy Waters Capital last week.
The US short selling firm, founded by Carson Block, last week questioned almost every aspect of NMC's finances as well as its corporate governance, suggesting there were possible "questions about possible fraud and theft".
NMC hit back saying the report was "false" and "misleading".
The stock halved last week wiping almost GBP3 billion off the company's total market value in the process.
NMC said it will be commencing an independent, third-party investigation into claims made by Muddy Waters. The independent review will be overseen by a committee made up of a majority of independent non-executive directors.
In response, Muddy Waters called on NMC to disclose the amount of its private medical company Aspen Healthcare's lease liability and a reconciliation of its debt.
City Index's Fiona Cincotta said: "Excessive debt is a key risk for the company. Part of Muddy Water's hypothesis is that NMC has substantial debt which it keeps off its balance sheet in a similar way that Carillion did, and which contributed to its collapse. Questions over fraud and theft of company assets were also brought up by Muddy Waters. Given investors' reaction to the Muddy Waters accusations, it would appear that many agreed.
"NMC's rebuttal on Friday did little to stop the run on shares, investors needed more than a simple denial. However, today's announcement that it has launched a review of its books following the Muddy Waters report appears to have quelled some fears, at least for now."
At the other end of the large cap index, budget airline easyJet ended its first day back in the FTSE 100 as the worst performer, down 1.3%. The stock was promoted as part of the FTSE Russell index review changes which took effect on Monday.
The pound was quoted at USD1.2925 at the London equities close, down from USD1.3051 at the close Friday, dipping below the USD1.30 mark as the euphoria surrounding the UK general election win for the Conservative Party wore off.
"Boris Johnson's opponents will take some comfort from the ongoing fall in sterling, which continues to hit new post-election lows. Peak bearishness on sterling was some months ago, when the crowd had decided the new PM was going to fail in his efforts, and we certainly haven't reached anything like the level of negativity of late August. But markets should be careful - crowing over the pound didn't work out when it was down at USD1.20 - there are bound to be some eyeing up GBP/USD as a possible buy, especially if the more pleasant utterances of late from the likes of Michel Barnier are echoed elsewhere in the EU," IG Group's Chris Beauchamp said.
The euro stood at USD1.1089 at the European equities close, little changed from USD1.1087 late Friday.
Against the yen, the dollar was trading at JPY109.35, flat from JPY109.37 late Friday.
Stocks in New York were higher at the London equities close, with the DJIA up 0.4%, while the S&P 500 index and the Nasdaq Composite were both up 0.2%.
On the corporate front, Dow constituent Boeing said under-fire Chief Executive Officer Dennis Muilenburg resigned with immediate effect and will be replaced by Chair David Calhoun.
Calhoun will become CEO & president, with effect from January 13 next year. Boeing Chief Financial Officer Greg Smith will serve as interim CEO during the brief transition period, the company explained, while Calhoun exits his non-Boeing commitments.
The aerospace giant explained a change in leadership was necessary to restore confidence in the company moving forward as it works to repair relationships with regulators, customers, and all other stakeholders. The company's 737 MAX jet was grounded this year after two fatal crashes, and Boeing last week said it will halt production of the model.
The stock was up 2.7% on Wall Street.
Meanwhile, Beijing will lower import tariffs on more than 850 products including frozen pork from next month, the finance ministry said Monday, as authorities battle a severe shortage of the meat staple.
China's pig industry has been hammered by African swine fever, which has led to the culling of more than a million animals, according to official statistics, and caused the price of pork to double.
Monday's announcement said tariffs on frozen pork will drop from 12% to eight percent from January 1.
However, Donald Trump retweeted two press reports on the tariff reduction Monday, without any additional comment, and the list includes many items that Chinese companies purchase from the US such as pork and tech goods.
"Although the move does is separate from negotiations with the US, it is consistent with other measures that Beijing has taken to secure its supply lines and promote trade, which still seems integral to its development strategy," said Bannockburn Global Forex's Marc Chandler.
Brent oil was quoted at USD66.00 a barrel at the London equities close, up from USD65.80 at the close Friday.
Gold was quoted at USD1,483.60 an ounce at the London equities close, firm against USD1,478.61 late Friday.
The economic events calendar on Tuesday has US durable goods orders at 1330 GMT. Financial markets in the UK and US will close early on Tuesday for Christmas Eve.
There are no events scheduled in the UK corporate calendar on Tuesday.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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