London close: Stocks finish week on positive note

(Sharecast News) - London's equity markets ended the week on a high note, as investors digested an improvement in UK consumer confidence, even as other indicators such as business output and retail sales painted a more challenging picture.

The FTSE 100 index climbed 1.38% to close at 8,262.08 points, and the FTSE 250 gained 1.14%, ending the session at 20,581.69 points.

In currency markets, sterling was last down 0.56% on the dollar to trade at $1.2518, while it edged up 0.16% against the euro, changing hands at €1.2038.

"Escalating tensions between Russia and Ukraine, which triggered safe haven gold inflows, pushed the precious metal price to new all-time highs in euros and the pound sterling," said IG senior analyst Axel Rudolph.

"In US dollars, the gold price saw its largest weekly gain in eight months and rose by close to 5%.

"The advance in the silver price has been comparatively lacklustre when compared to its more heavily traded peer but still ended the day around 1.5% up."

Rudolph noted that heightened geopolitical tensions were also contributing to an over 5% weekly gain in the price of oil.

"Despite dismal eurozone and UK preliminary purchasing manager indices pointing to a contraction and UK retail sales falling more than expected, European stock indices ended the day in positive territory with the FTSE 100 being the outperformer.

"US indices were propped up by the strongest US private sector growth since 2022.

"The euro hit a two-year low after the PMI data, though."

UK consumer confidence improves, but retail sales fall

In economic news, consumer confidence in the UK improved in November as post-Budget uncertainty eased.

The GfK consumer confidence index rose three points to -18, its best level since early 2024, and a notable improvement from -24 a year ago.

Most sub-measures strengthened, including expectations for personal finances over the next year, which edged up to -1.

Consumers also showed greater willingness to spend ahead of Black Friday, with the major purchase index rising five points to -16.

However, the savings index slipped three points to 24, signalling potential concerns about longer-term financial planning.

"There was evidence of nervousness in recent months as consumers contemplated the potential worrying impact of the Budget at home, and even the implications of the US presidential election," said Neil Bellamy, consumer insights director at GfK.

"But we have moved past these events now - the biggest change this month is in major purchase intentions, an important measure.

"However, while 2025 is just around the corner and the new year often brings optimism, it's too early to expect significant further improvements in the consumer mood."

Retail sales in the UK meanwhile fell sharply in October, reflecting lingering economic uncertainty.

Data from the Office for National Statistics revealed a 0.7% decline in sales volumes, surpassing economists' expectations of a 0.3% drop.

Non-food sales were particularly weak, falling 1.4%, with clothing store sales tumbling 3.1%.

The ONS attributed the decline to subdued consumer confidence and Budget-related uncertainties, further weighing on discretionary spending.

"Retail sales fell back in October following three months of growth," said ONS senior statistician Hannah Finselbach.

"The fall was driven by a notably poor month for clothing stores, but retailers across the board reported consumers held back on spending ahead of the Budget.

"However, when we look at the wider trend, retail sales are increasing across the three month and annual periods, although they remain below pre-pandemic levels."

Meanwhile, UK business activity contracted in November for the first time in over a year.

The S&P Global flash UK composite output index dropped to 49.9 from 51.8 in October, signalling a move into contraction territory.

Manufacturing fell to a nine-month low of 48.6, while the services sector stagnated at 50.0, its lowest reading in 13 months.

"The first survey on the health of the economy after the Budget makes for gloomy reading," said Chris Williamson, chief business economist at S&P Global Market Intelligence.

"Businesses have reported falling output for the first time in just over a year while employment has now been cut for two consecutive months.

"Although only marginal, the downturns in output and hiring represent marked contrasts to the robust growth rates seen back in the summer and are accompanied by deepening concern about prospects for the year ahead."

Economic challenges extended to the continent, where business activity also declined.

The eurozone composite PMI fell to 48.1 in November, its lowest level in 10 months, driven by contractions in both manufacturing and services sectors.

Germany, Europe's largest economy, meanwhile narrowly avoided a technical recession in the third quarter, posting GDP growth of just 0.1%.

However, that fell short of forecasts for 0.2%, underscoring the fragility of the region's recovery.

Games Workshop soars on guidance upgrade, banks broadly in the red

On London's equity markets, Games Workshop soared 17.25% after the Warhammer maker upgraded its half-year guidance.

The company forecast pre-tax profits of at least £120m for the six months ending 31 December, compared with £96.1m a year ago.

Core revenue was estimated at no less than £260m, alongside licensing revenue of at least £30m, driven by stronger-than-expected trading in recent months.

Clarkson also saw a significant gain, climbing 8.83% after Berenberg initiated coverage of the shipping services firm with a 'buy' rating and a 5,075p price target.

Supermarket chain J Sainsbury rose 2.84% as it started the second tranche of its £200m share buyback programme announced earlier in the year.

JD Sports Fashion edged up 1.36%, recovering some ground after Thursday's sharp drop.

However, JPMorgan Cazenove downgraded the stock to 'neutral' from 'overweight,' citing ongoing earnings uncertainty and a lack of clear catalysts for recovery.

On the downside, UK banking stocks were broadly weaker.

Barclays fell 2.3%, NatWest lost 2.07%, Standard Chartered declined 1.88%, and Lloyds Banking Group dropped 1.17%.

HSBC fared slightly better but still edged down 0.32%.

CMC Markets slumped 8.49%, extending losses from Thursday despite swinging to an interim pre-tax profit of £49.6m from a £2m loss a year earlier.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,260.10 1.36% FTSE 250 (MCX) 20,584.46 1.15% techMARK (TASX) 4,706.66 1.60%

FTSE 100 - Risers

Diploma (DPLM) 4,446.00p 5.31% Hikma Pharmaceuticals (HIK) 1,964.00p 4.91% AstraZeneca (AZN) 10,496.00p 4.31% Melrose Industries (MRO) 529.00p 4.09% Spirax Group (SPX) 6,765.00p 3.92% Vistry Group (VTY) 648.00p 3.76% Barratt Redrow (BTRW) 416.90p 3.53% Sainsbury (J) (SBRY) 255.20p 3.40% Marks & Spencer Group (MKS) 383.90p 3.23% B&M European Value Retail S.A. (DI) (BME) 349.80p 3.19%

FTSE 100 - Fallers

NATWEST GROUP (NWG) 392.60p -1.97% Barclays (BARC) 257.75p -1.88% Standard Chartered (STAN) 943.00p -1.67% Lloyds Banking Group (LLOY) 54.28p -1.34% JD Sports Fashion (JD.) 94.88p -0.59% International Consolidated Airlines Group SA (CDI) (IAG) 245.00p -0.57% M&G (MNG) 201.00p -0.45% HSBC Holdings (HSBA) 725.00p -0.26% Antofagasta (ANTO) 1,685.50p -0.24% Rolls-Royce Holdings (RR.) 540.40p -0.07%

FTSE 250 - Risers

Games Workshop Group (GAW) 13,700.00p 16.99% Clarkson (CKN) 3,910.00p 8.61% Ithaca Energy (ITH) 115.70p 6.15% ITV (ITV) 65.40p 5.40% Auction Technology Group (ATG) 445.00p 3.85% PureTech Health (PRTC) 168.20p 3.83% Vesuvius (VSVS) 412.50p 3.77% Rotork (ROR) 330.40p 3.64% Future (FUTR) 887.00p 3.50% Oxford Instruments (OXIG) 2,090.00p 3.47%

FTSE 250 - Fallers

CMC Markets (CMCX) 268.50p -6.93% W.A.G Payment Solutions (WPS) 80.00p -5.88% Close Brothers Group (CBG) 208.20p -2.89% Bridgepoint Group (Reg S) (BPT) 332.80p -2.75% Fidelity China Special Situations (FCSS) 206.50p -2.36% Investec (INVP) 597.50p -2.29% Foresight Environmental Infrastructure Limited (FGEN) 76.10p -2.06% SDCL Energy Efficiency Income Trust (SEIT) 51.40p -1.72% Carnival (CCL) 1,783.50p -1.55% TP Icap Group (TCAP) 261.00p -1.51%