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LONDON MARKET CLOSE: Stocks rise as inflation dips and oil prices firm
- FTSE 100 Performance: Closed up 89.53 points (0.9%) at 9,774.32, supported by cooling inflation and rising oil prices.
- FTSE 250 and AIM All-Share: FTSE 250 ended 123.78 points higher (0.6%) at 22,164.76; AIM All-Share up 2.07 points (0.3%) at 751.48.
- Cboe Indices: Cboe UK 100 up 0.9% at 979.85; Cboe UK 250 up 0.6% at 19,259.02; Cboe Small Companies down 0.1% at 17,257.93.
- UK Inflation Data: Headline CPI rose 3.2% year-on-year in November (below consensus of 3.5%), increasing likelihood of BoE rate cuts in 2026.
- Bank of England Expectations: Analysts predict a rate cut to 3.75% from 4.0% on Thursday, with further cuts possible in 2026.
- Pound Movement: GBP lower at USD1.3359 at London equities close, compared to USD1.3429 on Tuesday.
- Sector Performance: Housebuilders (e.g., Barratt Redrow +3.7%, Persimmon +2.3%) and oil companies (Shell +1.4%, BP +0.7%) gained.
- Oil Price Rebound: Brent oil up to USD59.91 per barrel, driven by US blockade on Venezuelan oil tankers.
- European Markets: CAC 40 down 0.3%; DAX 40 down 0.5%; Euro at USD1.1749.
- US Markets: Dow Jones -0.2%; S&P 500 -0.7%; Nasdaq -1.1%; US 10-year Treasury yield flat at 4.17%.
- London Stock Movers: Phoenix Group +3.3% (UBS upgrade); Glencore +1.5% (Berenberg upgrade); Bunzl -2.0% (margin caution).
- FTSE 250 Highlights: Serco +7.4% (upgraded profit guidance); Ceres Power -6.1% (continued decline after critical note).
- Commodities: Gold up to USD4,326.25 per ounce.
- Top FTSE 100 Risers: Barratt Redrow, Phoenix Group, Convatec, HSBC Holdings, United Utilities.
- Top FTSE 100 Fallers: DCC, Bunzl, ICG, Weir, IMI.
- Upcoming Events: Thursday features UK, Europe, Norway, and Sweden interest rate decisions, US inflation data, and Currys half-year results.
LONDON MARKET MIDDAY: FTSE jumps on UK rate cut bets
- Date and Time: 17th Dec 2025, 12:06
- London Stock Market:
- FTSE 100 up 1.6% at 9,843.83
- FTSE 250 up 1.0% at 22,255.64
- AIM All-Share up 0.5% at 753.05
- Cboe UK 100 up 1.6% at 986.75
- Cboe UK 250 up 0.9% at 19,322.49
- Cboe Small Companies up 0.1% at 17,280.28
- Market Drivers:
- Easing UK inflation reinforced expectations of a Bank of England (BoE) interest rate cut.
- BoE and European Central Bank (ECB) to announce rate decisions on Thursday; BoE expected to cut, ECB to hold.
- Lower inflation led to a drop in sterling, benefiting UK companies with overseas earnings.
- Housebuilders gained on expectations of lower mortgage rates.
- UK Inflation Data:
- CPIH rose 3.5% year-on-year in November, down from 3.8% in October.
- Food and non-alcoholic beverages inflation slowed to 4.2% from 4.9%.
- Month-on-month CPIH fell 0.1% in November.
- Currency Movements:
- Pound down to USD1.3331 from USD1.3429.
- Euro down to USD1.1721 from USD1.1775.
- Dollar up against yen at JPY155.51 from JPY154.79.
- European Markets:
- CAC 40 in Paris down 0.1%.
- DAX 40 in Frankfurt marginally lower.
- Eurozone inflation rose 2.1% year-on-year in November, below preliminary estimate of 2.2%.
- German Business Sentiment:
- ifo Business Climate index fell to 87.6 in December, below consensus of 88.2.
- Top Performers in London:
- Phoenix Group up 4.1% after UBS upgrade.
- Serco up 5.5% on upgraded profit guidance and new CFO announcement.
- Greencore up 2.4% and Bakkavor up 1.5% on acquisition completion news.
- Underperformers in London:
- Bunzl down 3.1% after reiterating 2025 outlook.
- Synectics down 18% despite solid demand and profit expectations.
- US Markets:
- Dow Jones, S&P 500, and Nasdaq called higher by 0.2%, 0.4%, and 0.4%, respectively.
- US 10-year Treasury yield unchanged at 4.17%; 30-year yield up to 4.85%.
- Commodities:
- Brent oil up to USD60.18 per barrel on US blockade of Venezuelan oil tankers.
- Gold up to USD4,318.40 per ounce.
- Upcoming Events:
- US Energy Information Administration crude oil stock figures expected later Wednesday.
LONDON BROKER RATINGS: Berenberg ups miners; UBS ups Phoenix, cuts M&G
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- 17th Dec 2025 09:19
- The following London-listed shares received analyst recommendations Wednesday morning and on Tuesday:
- FTSE 100
- UBS cuts Admiral to 'neutral' - price target 3,300 pence
- Keefe Bruyette & Woods raises HSBC to 'outperform' - price target 1,240 pence
- Berenberg raises Rio Tinto price target to 5,300 (5,200) pence - 'hold'
- Berenberg raises Glencore to 'buy' (hold) - price target 480 (350) pence
- Berenberg raises Fresnillo price target to 3,400 (2,600) pence - 'buy'
- Berenberg raises Endeavour Mining price target to 4,600 (4,300) pence - 'buy'
- Berenberg raises Antofagasta price target to 3,300 (2,900) pence - 'buy'
- Berenberg raises Anglo American price target to 3,400 (3,100) pence - 'buy'
- UBS raises Phoenix Group to 'buy' (neutral) - price target 770 (670) pence
- UBS cuts M&G to 'neutral' (buy) - price target 290 (275) pence
- UBS cuts Legal & General price target to 260 (275) pence - 'neutral'
- Bernstein reinitiates Smith & Nephew with 'market-perform' - price target 1355 P
- BofA raises Intercontinental Hotels price target to 11,700 (10,200) pence - 'buy'
- FTSE 250
- Barclays raises IntegraFin price target to 440 (430) pence - 'overweight'
- Deutsche Bank Research raises IG Group price target to 1,375 (1,300) pence - 'buy'
- RBC raises Serco price target to 290 (280) pence - 'outperform'
- Barclays cuts Grainger price target to 210 (225) pence - 'equal Weight'
- Bernstein raises ITV price target to 76 (74) pence - 'market-perform'
- Berenberg raises Hochschild Mining price target to 430 (400) pence - 'hold'
- Berenberg raises Atalaya Mining price target to 930 (760) pence - 'buy'
- Berenberg raises SSP price target to 230 (190) pence - 'buy'
- Jefferies cuts Hunting to 'hold' (buy) - price target 400 pence
- SMALL CAP
- Berenberg cuts Victoria price target to 100 (170) pence - 'buy'
- Berenberg raises Yellow Cake price target to 704 (668) pence - 'buy'
- Berenberg raises Wheaton Precious Metals target to 11,200 (9,700) pence - 'buy'
- Berenberg raises Valterra Platinum price target to 4,600 (3,200) pence - 'sell'
- Berenberg raises Sylvania Platinum price target to 127 (109) pence - 'buy'
- Berenberg raises Resolute Mining price target to 74 (64) pence - 'buy'
- Berenberg raises Rainbow Rare Earths price target to 34 (33) pence - 'buy'
- Berenberg raises Pan African Resource price target to 125 (112) pence - 'buy'
- Berenberg cuts Kenmare Resources price target to 290 (300) pence - 'hold'
- Berenberg raises Griffin Mining price target to 250 (240) pence - 'buy'
- Berenberg raises Ecora Resources price target to 150 (120) pence - 'buy'
- Berenberg raises BHP price target to 2,000 (1,900) pence - 'sell'
- Berenberg cuts Andrada Mining price target to 8 (10) pence - 'buy'
- Berenberg reinitiates ACG Metals with 'buy' - price target 2,100 pence
- Related Shares:
LONDON MARKET OPEN: FTSE 100 jumps as UK inflation cools before BoE
- London Stock Market: Opened positively with FTSE 100 up 1.0%, FTSE 250 up 0.7%, and AIM All-Share up 0.4%, driven by easing UK inflation data.
- UK Inflation: November CPIH rose 3.5% year-on-year (down from 3.8% in October), with monthly CPIH falling 0.1%. Headline CPI rose 3.2% year-on-year (down from 3.6% in October), below consensus.
- Inflation Drivers: Food, non-alcoholic beverages, alcohol, and tobacco prices contributed to the downward trend, with food inflation decelerating to 4.2% year-on-year.
- Producer Prices: Input prices rose 1.1% year-on-year in November, while output prices rose 0.1% monthly but eased annually.
- Bank of England: Expected to cut interest rates by 25 basis points on Thursday, with potential for further cuts in February if disinflation continues.
- UK-US Tech Deal: Suspended by the White House, pending "substantial progress" in UK-US trade talks.
- European Equities: CAC 40 up 0.1%, DAX 40 up 0.3%.
- Currency Movements: Pound down to USD1.3326, Euro down to USD1.1720, Dollar up to JPY155.43.
- Asian Markets: Nikkei 225 up 0.3%, Shanghai Composite up 1.2%, Hang Seng up 0.9%, S&P/ASX 200 down 0.2%.
- US Markets: Dow Jones down 0.6%, S&P 500 down 0.3%, Nasdaq up 0.2%.
- Commodities: Brent oil up to USD59.58/barrel, Gold up to USD4,315.70/ounce.
- Top Performers: Phoenix Group (+3.6% on UBS upgrade), IntegraFin Holdings (+5.5% on full-year results), Springfield Properties (+5.0% on strong margins and new contracts).
- Underperformers: Bunzl (-4.2% on reiterated 2025 outlook and macroeconomic challenges).
- Upcoming Data: Germany's Ifo business climate survey and eurozone consumer price inflation data.
LONDON MARKET EARLY CALL: FTSE 100 seen up ahead of UK inflation
- London Stocks: FTSE 100 futures indicate a 0.2% higher opening at 9,706.19, ahead of UK inflation data.
- UK Inflation Data: Due at 0700 GMT, with consensus forecasts of 3.5% annual CPI and 0.4% PPI.
- Currency Movements: Sterling down to USD1.3385, euro at USD1.1724, and dollar strengthened to JPY155.32.
- US-UK Tech Agreement: White House suspends technology cooperation deal, citing lack of progress in trade talks.
- Ukraine-Russia Peace Talks: Zelensky indicates potential finalization of peace deal within days, though unresolved issues remain.
- US Markets: Wall Street mixed; Dow down 0.6%, S&P 500 down 0.3%, Nasdaq up 0.2% amid cautious sentiment.
- Trade Tensions: US threatens countermeasures against EU over taxes on American firms; EU pledges non-discriminatory enforcement.
- Corporate News: Warner Bros Discovery to reject Paramount Skydance's takeover bid, favoring existing Netflix deal.
- US Unemployment: November rate climbed to 4.6%, highest since September 2021, exceeding expectations.
- Asian Markets: Mostly higher; Nikkei up 0.3%, Shanghai Composite up 1.2%, Hang Seng up 0.7%; S&P/ASX 200 down 0.2%.
- Japan Trade Balance: Swung to a JPY322.23 billion surplus in November, beating forecasts.
- Commodities: Gold at USD4,329.10/ounce, Brent oil at USD59.74/barrel, both higher than previous day.
- Economic Calendar: UK CPI, PPI, RPI, Germany's Ifo survey, and eurozone CPI inflation data due at 0700 GMT.
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