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FTSE and European stocks mixed ahead of EU inflation figures

December 19, 2023


LONDON, UNITED KINGDOM - 2023/12/17: People walk along Waterloo Bridge past the City of London skyline, the capital's financial district, on a sunny and mild day. (Photo by Vuk Valcic/SOPA Images/LightRocket via Getty Images) FTSE

The FTSE struggled for direction at the open. (SOPA Images via Getty Images)

UK and European stocks opened mixed as traders look ahead to EU inflation data out later on Tuesday.

The FTSE 100 (^FTSE) was flat at 7,612 points at the open, with the same in Paris, where the CAC 40 (^FCHI) was unchanged at 7,568 points. In Germany, the DAX (^GDAXI) bucked the trend and rose 0.2% to 16,683. Europe’s Stoxx 600 (^STOXX) climbed 0.2%.

Across the pond, US stocks edged higher Monday, building on a seven-week climb even as Federal Reserve officials tried to rein in high expectations for interest rate cuts.

Read more: Crypto’s movers and shakers of 2023

The Dow Jones (^DJI) finished flat at 37,306 points. The S&P 500 (^GSPC) rose 0.5% to 4,740 points and the tech-heavy NASDAQ (^IXIC) climbed 0.6% to 14,905.

The US Federal Reserve now sees 75 basis points of rate cuts coming in 2024, which accounts for one more rate cut than had been projected in September. That helped drive a rally in US stocks with the Dow reaching a record and the major indexes posting a seventh-straight winning week.

S&P 500 futures (ES=F), Dow futures (YM=F) and Nasdaq futures (NQ=F) were mixed as trading began in Europe.

In Asia, Tokyo’s Nikkei 225 (^N225) climbed 1.4% to 33,219 points after the Bank of Japan maintained its super-loose monetary policy, while the Hang Seng (^HSI) in Hong Kong retreated 0.7% to 16,512. The Shanghai Composite (000001.SS) finished flat at 2,932 points.

Read more: FTSE top trending tickers of 2023

The pound (GBPUSD=X) was slightly higher against the dollar, with sterling trading at $1.2680.

Sterling (GBPEUR=X) was also slightly higher against the euro, trading at €1.1595.

Meanwhile, Brent crude (BZ=F) was basically unchanged, trading at around $77 per barrel as as oil tankers avoid the Red Sea following heightened attacks by Iran-backed Houthi militants in the region which have disrupted international shipping routes.

Live3 updates

  • Trending tickers: UBS | Maersk | BP | Apple | Entain

    FILE PHOTO; Logos of Swiss banks UBS and Credit Suisse are seen in Zurich, Switzerland March 20, 2023. REUTERS/Denis Balibouse/File photoFILE PHOTO; Logos of Swiss banks UBS and Credit Suisse are seen in Zurich, Switzerland March 20, 2023. REUTERS/Denis Balibouse/File photo

    UBS was one of Tuesday’s trending tickers after an FT report revealed new activist investor involvement. (Reuters / Reuters)

    UBS (UBSG.SW) – UBS stock rose around 1.7% in early trade on Tuesday after a report by the Financial Times revealed an activist investor had taken a €1.2bn (£1bn, $1.3bn) stake in the Swiss bank.

    Maersk (MAERSK-B.CO) and BP (BP.L) – Shipping firms and oil companies are having to make tricky choices as the war in Israel and Gaza plays out, diverting tankers and deliveries due to militant attacks in Yemen.

    Apple (AAPL) – Apple stock was slightly down in premarket trade after the tech company said it will halt sales of its Apple Watch Series 9 and Apple Watch Ultra 2 in the coming days. Apple will remove the watches from its online stores by the afternoon of 21 December and from physical stores by 24 December.

    Entain (ENT.L) – Gambling heavyweight Entain rose on Tuesday after an upgrade by Jeffries to “buy” from “hold”.

    Read the full story here

  • Superdry shares plunge amid profit warning

    Shares in Superdry (SDRY.L) have plummeted to an all-time low after the retailer warned its profits will be worse than expected, blaming a tough consumer retail market and abnormally warm autumn weather delaying sales of its crucial autumn/winter range.

    The update from the fashion chain sent its share price tumbling by about a fifth on Tuesday morning, hitting about 30p per share, the lowest level since it began trading in 2010.

    The business has been cutting costs, clearing stock and selling off assets this year as part of efforts to boost profits.

    But a warm spell across the UK and Europe during September spoiled sales for the brand, known for its jackets and hoodies.

    Retail sales fell by 13% over the six months to the end of October, with shopping impacted by the weather as well as a later start to its end-of-season summer sale.

    Online shopping was also affected by the group reducing spending on digital marketing, it said.

    Wholesale, where the business sells its products to other retailers, tumbled by more than 40% year-on-year, which Superdry said was partly expected after deciding to exit its US operations.

  • UK economy at risk of downturn next year, bond fund giant Pimco warns

    The UK is at risk of a major economic downturn next year according to one of the world’s biggest active bond fund managers.

    Daniel Ivascyn, chief investment officer at Pimco, is predicting the UK will suffer greater economic strain than the US economy next year. He told the Financial Times:

    “In the case of the UK — a smaller, open economy, with a consumer that’s feeling the brunt of central bank policy far more than their US counterparts — you just have a higher probability of more significant economic deterioration.”

    “We do think there’s potentially more hard landing risks.”

Watch: BP becomes latest company to temporarily suspend shipping due to Red Sea attacks

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