LONDON (ShareCast) - (Sharecast News) - London stock markets closed in the red on Friday as sharp declines in airline, mining, and housebuilding stocks weighed on indices, with a lack of significant news and profit-taking following a recent rally dampening sentiment.

The FTSE 100 index fell 0.44% to end at 8,223.98 points, while the FTSE 250 slipped 0.24% to 20,591.40 points.

In currency markets, sterling was last up 0.37% on the dollar to trade at $1.2426, as it edged up 0.02% against the euro, changing hands at €1.2060.

"The Shanghai stock index dropped another 1.5% as Chinese bonds hit fresh record lows," said IG senior technical analyst Axel Rudolph.

"In Europe, the French CAC 40 continued to underperform, falling by around 1.5% on the day and down on the week amid the country's political instability.

"US stock indices managed to stem their five-day sell-off as the ISM manufacturing PMI rose more than expected."

Rudolph added that the oil price continued to advance, trading in two-and-a-half month highs amid demand optimism around China's potential economic recovery.

"[That followed] president Xi Jinping's New Year speech and, more importantly, a drop in US inventories earlier in the week."

UK retail sector sees challenging holiday period, US manufacturing activity contracts

In economic news, the UK retail sector faced a challenging 'Golden Quarter', with footfall declining across bricks-and-mortar stores.

According to the British Retail Consortium, footfall dropped 2.2% in the five weeks between 24 November and 28 December, following a 4.5% slide in November.

The shift of Black Friday into December helped buoy that month's figures but dragged on November's performance.

Over the fourth quarter, total footfall fell 2.5% year-on-year, contributing to a 2.2% annual decline for 2024.

High street and shopping center visits were particularly weak in December, down 2.7% and 3.3%, respectively, while retail parks remained stable.

"A drab December which saw fewer shoppers in all locations, capped a disappointing year for UK retail footfall," said the BRC's chief executive Helen Dickinson.

"This means 2024 is the second year in a row where footfall has been in decline.

"Even the Golden Quarter, typically the peak of shopping activity, provided little relief, with footfall down over the period."

In Germany, unemployment rose less than expected in December, leaving the jobless rate unchanged at 6.1% for a third consecutive month.

The Federal Labour Office reported a 10,000 increase in unemployed individuals, totaling 2.869 million for the month, better than forecasts of a 15,000 rise.

While unemployment remained near a four-year high, it averaged 6.0% for 2024, up from 5.7% the prior year, reflecting the broader post-pandemic economic adjustment.

Across the Atlantic, United States manufacturing activity contracted for the ninth consecutive month in December, though at a slower pace.

The Institute for Supply Management's purchasing managers' index rose to 49.3 from November's 48.4, just shy of the 50-point threshold that separates contraction from expansion.

Sub-indices tracking new orders and production saw gains, with the former climbing to 52.5 and the latter to 50.3.

However, sectoral performance varied, with reports of slowed production in machinery and fabricated metal products contrasting with stronger capacity use in electrical equipment manufacturing.

Airlines and housebuilders in the red, energy plays rise alongside crude prices

On London's equity markets airline stocks fell sharply, with easyJet dropping 3.73%, British Airways owner International Airlines Group (IAG) losing 1.52%, and Wizz Air sliding 1.62%.

A near-2% surge in oil prices the prior day weighed on sentiment earlier, with further growth in the afternoon seeing Brent futures last trading up 0.94% at $76.64 per barrel.

Wizz Air also reported a modest 1.9% year-on-year increase in December passenger numbers but saw its capacity constrained by ongoing Pratt & Whitney engine issues.

Housebuilders were among the worst performers after Bank of England data showed a surprise decline in mortgage approvals, which fell to 65,720 in November from 68,129 in October, missing expectations for an increase to 68,500.

Net lending to individuals also contracted.

Barratt Redrow, Taylor Wimpey, Persimmon, Bellway, and Vistry all posted losses, with Vistry extending last week's declines following its third profit warning in as many months.

Mining heavyweights also slipped, with Glencore down 0.55%, Anglo American losing 1.11%, and Antofagasta edging 0.06% lower, reversing some of the gains from the prior session.

Pharmaceuticals giant GSK shed 1.65% despite receiving Chinese regulatory approval for its monoclonal antibody therapy Nucala to treat chronic rhinosinusitis with nasal polyps in adults.

The treatment aimed to address symptoms poorly managed by corticosteroids or surgery.

On the upside, energy stocks outperformed, buoyed by the higher oil prices.

BP and Shell gained 1.43% and 1.8%, respectively, while Harbour Energy climbed 2.8%, and Ithaca Energy surged 3.56%, making them some of the day's strongest performers on both the FTSE 100 and FTSE 250.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,223.98 -0.44%
FTSE 250 (MCX) 20,591.40 -0.24%
techMARK (TASX) 4,609.78 -0.73%

FTSE 100 - Risers

Shell (SHEL) 2,566.50p 1.56%
BP (BP.) 407.95p 1.19%
Pershing Square Holdings Ltd NPV (PSH) 4,034.00p 1.15%
Scottish Mortgage Inv Trust (SMT) 971.40p 1.02%
British Land Company (BLND) 362.40p 0.89%
DCC (CDI) (DCC) 5,255.00p 0.86%
British American Tobacco (BATS) 2,973.00p 0.71%
Imperial Brands (IMB) 2,604.00p 0.70%
Centrica (CNA) 138.00p 0.58%
Standard Chartered (STAN) 989.00p 0.41%

FTSE 100 - Fallers

Diageo (DGE) 2,448.50p -3.89%
Persimmon (PSN) 1,139.50p -3.76%
Barratt Redrow (BTRW) 420.50p -3.24%
easyJet (EZJ) 540.40p -3.05%
Taylor Wimpey (TW.) 118.85p -2.78%
Entain (ENT) 676.40p -2.65%
Prudential (PRU) 625.00p -2.44%
Whitbread (WTB) 2,931.00p -2.43%
Spirax Group (SPX) 6,670.00p -2.41%
Flutter Entertainment (DI) (FLTR) 20,410.00p -2.34%

FTSE 250 - Risers

Ithaca Energy (ITH) 122.20p 3.56%
Harbour Energy (HBR) 268.00p 2.80%
Ocado Group (OCDO) 323.60p 2.66%
Foresight Environmental Infrastructure Limited (FGEN) 75.80p 2.43%
Oxford Nanopore Technologies (ONT) 130.60p 2.02%
W.A.G Payment Solutions (WPS) 81.20p 1.75%
The Renewables Infrastructure Group Limited (TRIG) 88.20p 1.73%
ICG Enterprise Trust (ICGT) 1,328.00p 1.68%
Drax Group (DRX) 669.00p 1.67%
Moonpig Group (MOON) 212.00p 1.43%

FTSE 250 - Fallers

Wood Group (John) (WG.) 64.70p -3.86%
Carnival (CCL) 1,765.50p -3.81%
Ferrexpo (FXPO) 105.00p -3.49%
Bellway (BWY) 2,352.00p -3.21%
Watches of Switzerland Group (WOSG) 530.50p -3.02%
Kainos Group (KNOS) 770.00p -2.65%
SSP Group (SSPG) 176.70p -2.59%
Aston Martin Lagonda Global Holdings (AML) 105.40p -2.14%
Renishaw (RSW) 3,280.00p -1.94%
Foresight Solar Fund Limited (FSFL) 75.70p -1.94%

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