London open: Stocks at two-week high, but gains limited

(Sharecast News) - UK equity markets were trading at their highest levels in more than two weeks on Thursday, though markets were largely flat with investors exercising caution on a slow day for financial markets. The FTSE 100 opened just 0.1% higher at 8,178, led by a decent performance from mining stocks. The Footsie, which has not closed higher since 18 December, has now gained in five of the past six sessions, but trading has been rangebound with the index having risen just 1.1% during that period.

With global financial markets closed on Wednesday for New Year's Day, there will be plenty of economic data to digest, with December manufacturing surveys due out in China, the eurozone, UK and US, along with US mortgage applications, construction spending and jobless claims later on.

However, Thursday is likely to be a quiet day for blue-chip corporate announcements, with volumes still likely to be low as traders returned to the desks following the festive holidays.

In China, the Caixin purchasing managers' index declined to 50.5 from a five-month high 51.5 in November, surprising economists who had pencilled in a pick-up to 51.7. The survey showed that new order growth eased on the back of "softening external demand".

"There are expectations for further promised stimulus for the economy, to boost confidence and kick start orders," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

"But the snapshot of the sector shows how much work needs to be done. Mining stocks were on the front foot in initial trade but lost some ground. The waiting game is on for more proactive steps to propel growth in world's second largest economy."

In other news, Nationwide reported that UK house prices rose 4.7% year-on-year in December to £269,426, up 0.7% over the month to sit just below an all-time high recorded in summer 2022. Robert Gardner, Nationwide's chief economist, said that the housing market "ended 2024 on a strong footing", but volatility is expected across the next few months due to upcoming changes to stamp duty, which will "make it more difficult to discern the underlying strength of the market".

Banks down, miners up

Banking stocks were providing a drag on markets early on, with Barclays, HSBC, Standard Chartered and NatWest among the worst performers, along with financial peers St James's Place and Scottish Mortgage Investment Trust.

Leading the risers was the heavyweight mining sector, including Fresnillo, Glencore and Antofagasta, as metal prices gained.

Meanwhile, retail stocks were mixed, with high street names Marks & Spencer and Next in demand but B&Q owner Kingfisher out of favour.

Market Movers

FTSE 100 (UKX) 8,177.65 0.06% FTSE 250 (MCX) 20,584.08 -0.19% techMARK (TASX) 4,618.91 -0.11%

FTSE 100 - Risers

Marks & Spencer Group (MKS) 380.40p 1.30% Fresnillo (FRES) 629.00p 1.21% Rolls-Royce Holdings (RR.) 574.60p 1.06% Antofagasta (ANTO) 1,603.00p 0.82% Glencore (GLEN) 356.15p 0.78% BT Group (BT.A) 145.15p 0.76% Centrica (CNA) 134.60p 0.75% Sage Group (SGE) 1,282.00p 0.71% Next (NXT) 9,564.00p 0.69% Rightmove (RMV) 646.20p 0.69%

FTSE 100 - Fallers

Barclays (BARC) 265.20p -1.10% Kingfisher (KGF) 246.10p -1.05% HSBC Holdings (HSBA) 777.10p -1.04% St James's Place (STJ) 860.00p -0.92% Intertek Group (ITRK) 4,686.00p -0.89% NATWEST GROUP (NWG) 398.70p -0.85% Melrose Industries (MRO) 549.20p -0.83% Alliance Witan (ALW) 1,236.00p -0.64% Smith & Nephew (SN.) 985.20p -0.63% SSE (SSE) 1,594.00p -0.62%

FTSE 250 - Risers

Discoverie Group (DSCV) 741.00p 3.64% W.A.G Payment Solutions (WPS) 82.80p 3.50% Ithaca Energy (ITH) 113.80p 3.08% Ocado Group (OCDO) 307.50p 1.72% Telecom Plus (TEP) 1,744.00p 1.51% Raspberry PI Holdings (RPI) 634.25p 1.48% Harbour Energy (HBR) 259.10p 1.45% Senior (SNR) 161.80p 1.38% Asia Dragon Trust (DGN) 429.00p 1.18% Energean (ENOG) 1,055.00p 1.15%

FTSE 250 - Fallers

Big Yellow Group (BYG) 933.00p -2.81% IntegraFin Holding (IHP) 336.00p -2.75% Baillie Gifford US Growth Trust (USA) 275.00p -2.31% PPHE Hotel Group Ltd (PPH) 1,380.00p -2.13% Fidelity China Special Situations (FCSS) 218.50p -2.02% Fidelity Emerging Markets Limited Ptg NPV (FEML) 681.10p -2.00% Spectris (SXS) 2,464.00p -1.75% SThree (STEM) 291.00p -1.69% Deliveroo Class (ROO) 139.70p -1.55% Grafton Group Ut (CDI) (GFTU) 946.80p -1.34%