London close: Stocks fall, pound weakens further on rising bond yields
By Josh White
Date: Monday 13 Jan 2025
(Sharecast News) - London stocks ended Monday in negative territory, pressured by rising bond yields and diminished expectations for near-term interest rate cuts.
The FTSE 100 index slipped 0.29% to close at 8,224.19 points, while the FTSE 250 edged down 0.08% to finish at 19,718.37 points.
In currency markets, sterling was last down 0.48% on the dollar to trade at $1.2149, as it slopped 0.06% against the euro, changing hands at €1.1909.
"British stocks fell on Monday, affected by a worldwide selloff as investors avoided risky assets after a US jobs report from last week strengthened expectations that the Federal Reserve would be careful about reducing interest rates this year," said TickMill market strategy partner Patrick Munnelly.
"Most subsectors experienced declines, with aerospace and defence being the most affected.
"Global stock markets fell, while bond yields stayed high after Friday's data revealed that US job growth unexpectedly picked up in December and the unemployment rate decreased to 4.1%."
Munnelly noted that the yield on the 30-year gilt surged to a new 27-year peak, as the yield on the 10-year note reached its highest level since 2008, continuing the selloff for the second week in a row.
"British midcaps faced a nearly 3% decline last week, impacted by a significant increase in British borrowing costs that raised concerns about public finances following the government's announcement of substantial spending plans.
"Energy stocks were an exception, rising by 1.2% as crude oil prices increased due to broader US sanctions on Russian oil and anticipated impacts on exports to major buyers like India and China.
"The high crude oil prices negatively affected airline stocks, with the travel and leisure sector down by 1.3%."
China announces record full-year trade surplus
There was a lack of fresh data releases in the UK on Monday, but earlier in the session, China announced a record trade surplus of $990bn for the last year, fuelled by strong export growth ahead of potential trade tensions.
The General Administration of Customs revealed that the country exported goods worth $3.58trn in 2023, while imports totaled $2.59trn.
That surplus surpassed the previous record of $838bn set in 2022.
The data also highlighted a record single-month surplus in December, reaching $104.8bn.
Analysts suggested that could be linked to businesses accelerating shipments in anticipation of higher tariffs.
The news came as US president-elect Donald Trump prepared to take office, with trade policy expected to be a focal point of his administration.
Trump had signalled intentions to impose tariffs on Chinese goods, intensifying concerns over a potential trade conflict between the world's two largest economies.
Airlines in the red, oil majors rise on higher crude prices
In equity markets, airlines led the declines in London as rising oil prices weighed on the sector.
Concerns over potential US sanctions against Russia pushed crude prices higher, putting pressure on British Airways and Iberia parent IAG, which fell 4.15%, along with easyJet and Wizz Air, down 2.42% and 2.2%, respectively.
Elsewhere, recruitment firm PageGroup tumbled 3.15% after warning that annual operating profit would be at the lower end of expectations.
Fourth-quarter earnings dropped 17%, with the company citing worsening European market conditions and lower salary offers to job candidates.
Pharma giant GSK edged down 1.26% after announcing it would acquire US-based biopharmaceutical company IDRx for up to $1.15bn.
Fintech group Plus500 also slipped 0.46%, despite reporting better-than-expected 2024 results, buoyed by a 45% surge in customer numbers in the final quarter.
On the upside, Entain surged 6.02% as the Ladbrokes owner reaffirmed its full-year EBITDA guidance.
The recovery followed a recent sell-off triggered by a US guidance downgrade from rival Flutter Entertainment, which gained 2% on Monday.
Oil majors Shell and BP rose 1.45% and 0.74%, respectively, supported by the higher crude prices.
Meanwhile, Oxford Nanopore Technologies leapt 8.93% after the DNA and RNA analysis firm reported stronger-than-expected margins, driven by accelerating momentum at year-end.
Reporting by Josh White for Sharecast.com.
Market Movers
FTSE 100 (UKX) 8,224.19 -0.29%
FTSE 250 (MCX) 19,718.37 -0.08%
techMARK (TASX) 4,549.83 -0.60%
FTSE 100 - Risers
Intermediate Capital Group (ICG) 2,072.00p 2.27%
Flutter Entertainment (DI) (FLTR) 20,880.00p 2.00%
NATWEST GROUP (NWG) 381.70p 1.95%
Associated British Foods (ABF) 1,963.00p 1.63%
Centrica (CNA) 135.85p 1.57%
Glencore (GLEN) 363.95p 1.46%
Shell (SHEL) 2,663.00p 1.45%
BP (BP.) 431.20p 1.43%
Rio Tinto (RIO) 4,885.00p 1.39%
Schroders (SDR) 307.80p 1.32%
FTSE 100 - Fallers
International Consolidated Airlines Group SA (CDI) (IAG) 304.60p -3.58%
Fresnillo (FRES) 644.50p -3.52%
Rightmove (RMV) 624.80p -3.19%
easyJet (EZJ) 493.70p -2.78%
Diageo (DGE) 2,391.50p -2.25%
Rolls-Royce Holdings (RR.) 567.40p -2.17%
Persimmon (PSN) 1,056.00p -1.95%
Pearson (PSON) 1,270.00p -1.74%
Halma (HLMA) 2,647.00p -1.67%
Games Workshop Group (GAW) 13,230.00p -1.64%
FTSE 250 - Risers
Oxford Nanopore Technologies (ONT) 143.40p 9.47%
IP Group (IPO) 50.90p 3.67%
CMC Markets (CMCX) 240.00p 3.45%
Ithaca Energy (ITH) 134.20p 3.39%
Ferrexpo (FXPO) 94.80p 3.16%
Pets at Home Group (PETS) 200.00p 2.46%
The Renewables Infrastructure Group Limited (TRIG) 82.10p 2.24%
Moonpig Group (MOON) 200.00p 2.15%
Mitie Group (MTO) 108.80p 2.06%
PPHE Hotel Group Ltd (PPH) 1,275.00p 2.00%
FTSE 250 - Fallers
Raspberry PI Holdings (RPI) 562.50p -4.34%
Indivior (INDV) 932.00p -4.12%
Watches of Switzerland Group (WOSG) 484.80p -3.71%
PayPoint (PAY) 671.00p -3.59%
Grafton Group Ut (CDI) (GFTU) 844.40p -3.50%
Pagegroup (PAGE) 301.60p -3.15%
Ocado Group (OCDO) 270.00p -3.09%
C&C Group (CDI) (CCR) 139.00p -3.07%
Dr. Martens (DOCS) 66.10p -2.94%
Discoverie Group (DSCV) 633.00p -2.91%
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