London close: Stocks mixed as Trump reenters the Oval Office
By Josh White
Date: Monday 20 Jan 2025
(Sharecast News) - London stocks ended Monday with a mixed performance as investors assessed the latest UK house price data and monitored Donald Trump's inauguration as the 47th president of the United States.
The FTSE 100 index rose 0.18% to close at 8,520.54 points, while the FTSE 250 declined by 0.54% to 20,486.74 points.
In currency markets, sterling was last up 0.9% on the dollar, last trading at $1.2278, as it slipped 0.17% against the euro to change hands at €1.1829.
"He isn't even officially president yet, but Donald Trump's second term has got off to a volatile start for global markets," said IG chief market analyst Chris Beauchamp.
"The dollar was sent flying after indications that tariffs would not be on the agenda for day one, tempering some of the wild expectations that have been flying around dealing rooms in recent days.
"Stocks were given a lift on the news, with Chinese futures given a notable lift, on hopes that the administration might not opt to go all out on new tariffs in the opening days of the new presidency."
Beauchamp noted that Monday's headlines "certainly put a marker down" that markets were back to the sort of trading conditions that prevailed in Trump's first term, being "rapid and dramatic reactions" to headlines and tweets.
"Traders have largely gotten out of the habit of responding to such developments, but once again they will need to make sure the presidential social media feeds are always just a click away."
UK housing market starts year strongly, China maintains key lending rates
In economic news, the UK housing market saw a strong start to the year, with the average asking price for properties rising by 1.7% in January to £366,189, the largest increase for the month since 2020, according to Rightmove.
A surge in new listings since Boxing Day gave buyers the highest level of choice at the beginning of a year since 2015, contributing to a positive start to 2025 buyer activity.
The number of new properties entering the market rose by 11% compared to the same period last year, while buyer enquiries increased by 9% and sales agreements were up by 11%.
Despite the rebound, asking prices remain nearly £9,000 below the peak recorded in May 2024, indicating continued affordability challenges.
"New sellers have started the year with a bang, with a record number coming to market not only on Boxing Day itself, but across the start of the year to date," said Rightmove's Colleen Babcock.
"We've also seen a strong start to the year in new seller asking prices, though given the higher-than-anticipated seller competition, we would expect this to slow down over the next few months.
"The record number of sellers we're seeing is a double-edged sword.
In China, the central bank maintained its key lending rates for the third consecutive month, with the one-year loan prime rate holding at 3.1% and the five-year rate at 3.6%.
The People's Bank of China had refrained from further rate cuts following reductions in late 2024 aimed at stimulating the country's slowing economy.
Meanwhile, the European Commission escalated its trade dispute with China by filing a complaint with the World Trade Organisation over what it described as unfair practices in setting global royalty rates for EU standard essential patents without consent from patent holders.
The Commission argued that the practices undermine European innovation by pressuring companies to lower their licensing fees, giving Chinese manufacturers an unfair advantage.
It followed a related complaint made by the EU in 2022 regarding Chinese legal measures that prevent foreign companies from enforcing their intellectual property rights outside of China.
A ruling on that case is expected later in the year.
Across the Atlantic, president-elect Donald Trump was preparing to launch a review into China's compliance with the trade agreement signed in 2020.
The new administration, being sworn in on Monday, was expected to issue a directive outlining its approach, though immediate new tariffs were not anticipated.
The review would reportedly also assess trade relations with Canada and Mexico ahead of the scheduled 2026 review of the revised North American trade deal.
Trump's team was apparently seeking commitments from both countries to limit China's influence in key sectors, such as automotive manufacturing.
The administration was also expected to examine existing tariffs on steel and aluminium imports imposed in 2018, as well as broader issues such as trade deficits and currency policies in countries like China and Vietnam.
Wood Group rises on Esso deal, Trainline slides on GBR ticketing reports
On London's equity markets John Wood Group rose 2.76% after it secured a long-term maintenance contract for Esso's onshore and offshore assets in Australia's Gippsland Basin.
Ladbrokes owner Entain also finished higher, rising 1.05% after reversing initial losses.
The company was in focus following reports that the Financial Reporting Council had launched an investigation into KPMG's audit of its 2022 financial statements.
On the downside, Trainline shares plunged 7.06% after reports suggested that the UK's new publicly-owned rail body, Great British Railways, would prioritise the expansion of contactless train travel.
The proposed reform, championed by transport secretary Heidi Alexander, would be part of a simplification of fare and ticketing structures, raising concerns about the impact on Trainline's business model.
In broker activity, National Grid edged up 0.29% after Citi upgraded its rating from 'neutral' to 'buy,' while Pets at Home gained 1.35% following a similar upgrade by Peel Hunt.
Spirax Group climbed 2.54% after Jefferies lifted its recommendation to 'buy' from 'hold.'
However, Smiths Group slipped 0.7% after the same broker downgraded its rating to 'hold' from 'buy.'
Real estate stocks struggled, with British Land down 0.83% despite Jefferies upgrading the stock to 'hold' from 'underperform.'
Segro also declined by 0.86% after Jefferies cut its price target to 751p from 804p while maintaining a 'hold' rating.
Reporting by Josh White for Sharecast.com.
Market Movers
FTSE 100 (UKX) 8,520.54 0.18%
FTSE 250 (MCX) 20,486.74 -0.54%
techMARK (TASX) 4,690.07 -0.13%
FTSE 100 - Risers
Fresnillo (FRES) 685.50p 2.93%
Anglo American (AAL) 2,620.50p 2.85%
Spirax Group (SPX) 7,455.00p 2.54%
Experian (EXPN) 3,820.00p 2.22%
Flutter Entertainment (DI) (FLTR) 21,830.00p 2.20%
Melrose Industries (MRO) 580.00p 2.18%
Kingfisher (KGF) 247.90p 2.06%
Mondi (MNDI) 1,230.50p 2.00%
Glencore (GLEN) 387.45p 1.85%
IMI (IMI) 1,960.00p 1.82%
FTSE 100 - Fallers
Rentokil Initial (RTO) 377.80p -2.20%
Hiscox Limited (DI) (HSX) 1,080.00p -2.17%
Beazley (BEZ) 833.50p -1.48%
Pearson (PSON) 1,270.50p -1.44%
LondonMetric Property (LMP) 181.00p -1.36%
AstraZeneca (AZN) 10,794.00p -1.32%
Auto Trader Group (AUTO) 784.40p -1.16%
JD Sports Fashion (JD.) 84.08p -1.13%
Admiral Group (ADM) 2,615.00p -1.10%
BP (BP.) 429.70p -1.06%
FTSE 250 - Risers
Oxford Nanopore Technologies (ONT) 148.50p 3.85%
Indivior (INDV) 992.50p 3.24%
Wood Group (John) (WG.) 70.45p 2.85%
Aston Martin Lagonda Global Holdings (AML) 111.30p 2.49%
Abrdn (ABDN) 141.60p 2.42%
Ashmore Group (ASHM) 157.50p 2.41%
Jupiter Fund Management (JUP) 76.00p 2.15%
Wizz Air Holdings (WIZZ) 1,338.00p 1.75%
Discoverie Group (DSCV) 706.00p 1.73%
Mobico Group (MCG) 77.90p 1.56%
FTSE 250 - Fallers
Trainline (TRN) 376.60p -7.06%
Ithaca Energy (ITH) 139.00p -4.35%
Workspace Group (WKP) 460.50p -3.76%
Clarkson (CKN) 4,275.00p -3.72%
SDCL Energy Efficiency Income Trust (SEIT) 52.20p -3.51%
Bakkavor Group (BAKK) 138.00p -3.50%
Diversified Energy Company (DEC) 1,298.00p -3.35%
TR Property Inv Trust (TRY) 302.00p -3.21%
Baillie Gifford US Growth Trust (USA) 258.50p -3.00%
Morgan Advanced Materials (MGAM) 259.50p -2.81%
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