LONDON MARKET OPEN: European stocks fade as eyes on Ukraine talks

Tue, 18th Feb 2025 08:57

(Alliance News) - London's FTSE 100 edged lower early Tuesday, as investors continue to track talks on Ukraine, and after UK data showed pay growth picked up as last year wound down.

The FTSE 100 index fell just 3.18 points at 8,764.83. The FTSE 250 fell 41.07 points, 0.2%, at 20,897.61, and the AIM All-Share rose 1.10 points, 0.2%, at 726.32.

The Cboe UK 100 fell slightly to 879.48, the Cboe UK 250 dropped 0.3% to 18,217.90, and the Cboe Small Companies fell 1.4% at 15,907.85.

In Paris, the CAC 40 was down 0.2%. Frankfurt's DAX 40 fell slightly.

The pound was quoted at USD1.2620 early Tuesday, rising from USD1.2613 at the time of the London equities close on Monday. The euro stood lower at USD1.0467 from USD1.0482. Against the yen, the dollar was trading higher at JPY151.86 from JPY151.41.

The UK jobless rate was lower than expected in the final three months of 2024, and pay growth picked, numbers on Tuesday showed.

The Office for National Statistics said the UK jobless rate in the three months to December was 4.4%, where it stood in the three months to November. The unemployment rate had been expected to pick up to 4.5%, according to FXStreet cited consensus.

The ONS noted the UK jobless rate increased from 4.3% in the three months to September and from 3.9% in the final three months of 2023.

"The estimated number of vacancies in the UK decreased by 9,000 on the quarter to 819,000 in November 2024 to January 2025. Vacancies decreased on the quarter for the 31st consecutive period but are still above pre-coronavirus pandemic levels," the ONS said.

Average yearly growth for regular earnings, so excluding bonuses, was 6.0% in December alone. Growth picked up speed from 5.6% in November. Including bonuses, pay growth picked up to 5.9% in December, from 5.5% in November.

For the three months to December, average regular pay growth was 5.9%, accelerating from 5.6% in the three months to November. Total pay growth was 6.0%, picking up speed from 5.5%. The total pay outcome beat the FXStreet cited consensus of 5.9%, while regular pay growth was in line.

"It is difficult to imagine that the latest UK labour market report will provide much 'news' to the MPC versus its recent MPR projections. Although the unemployment rate held at 4.4% in Q4, rather than rising 0.1ppt to 4.5% as the BoE and consensus expected, given the known sampling difficulties of the ONS, such a small miss won't be seen as material," Lloyds Bank analysts commented.

"In the face of overall demand in the economy being slightly softer, the impact in the labour market hasn't shown up in the unemployment rate, but there is a sign of a bit more underemployment."

Top US and Russian diplomats were meeting in Saudi Arabia on Tuesday for talks on resetting their countries' fractured relations and making a tentative start on trying to end the Ukraine war.

Both sides played down the chances that the first high-level meeting between the countries since US President Donald Trump took office would result in a breakthrough.

Ukrainian President Volodymyr Zelensky said Kyiv was not invited to the discussions in Riyadh. European leaders met in Paris on Monday for emergency talks on how to respond to the radical pivot by the new Trump administration.

In London, BT shares fell 5.2% in early trade. According to a regulatory filing from Monday, Morgan Stanley no longer has a stake in the telecommunications firm as of Thursday. It had a 5.0% holding previously, the filing stated.

Antofagasta added 1.9%. It reported a rise in annual earnings and the miner said it is encouraged by the demand outlook for copper, a commodity the "world needs more of".

Antofagasta's pretax profit in 2024 amounted to USD2.07 billion, a 5.4% rise from USD1.97 billion in 2023. Revenue improved 4.6% to USD6.61 billion from USD6.32 billion.

Copper production volumes climbed 0.5% to 663,950 tonnes in 2024 from 660,600 tonnes in 2023.

The pace in revenue growth reflected the higher realised copper price, which rose 7.5% to USD4.18 per pound in 2024 from USD3.89/lb in 2023.

Glencore rose 1.8% as Morgan Stanley raised the miner to 'overweight'.

Elsewhere in the mining space, BHP fell 0.5% after cutting its first-half dividend. Anglo American added 1.0% as it reported that it has sold its nickel business. Anglo iron ore producing investee Kumba, meanwhile, reported a sharp decline in annual profit, as the company grappled with weaker prices.

Nonetheless, Kumba shares were 5.5% higher in Johannesburg.

Mining sector earnings continue with numbers from Rio Tinto on Tuesday evening, or Wednesday morning Sydney time. Glencore reports earnings on Wednesday morning in London.

The UK banking earnings period continues this week, following numbers from NatWest and Barclays last week. Shares in the duo fell following the earnings, having come into the numbers with a sharp 12-month rise. Barclays and NatWest shares were 1.2% higher early Tuesday.

HSBC reports earnings on Wednesday, before Lloyds Banking Group on Thursday and Standard Chartered on Friday.

Media and technology platform Seeen jumped 29%.

"The company has turned an important corner and the board expects to have a strong 2025 and beyond with scalable growth," it said.

"During December 2024, the group crossed over into operating cash flow breakeven on a monthly basis, and accelerated the group's revenue run rate to USD5.0 million. This growth and the yield on such growth was driven by both technology sales and a return to scalable growth in the group's creator service partner business.

Seeen expects to report 2024 revenue surged 50% to USD3.2 million from USD2.1 million.

In addition, it said it has won a deal with a publishing house to manage their video and asset content library on YouTube.

Gold was quoted higher at USD2,911.53 an ounce early Tuesday, from USD2,898.96 at the time of the London equities close on Monday. Brent traded at USD75.35 a barrel, rising from USD74.98.

By Eric Cunha, Alliance News news editor

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