(Alliance News) Following the release of the European Central Bank minutes and amid relatively quiet Thanksgiving trade, stock prices in Europe closed mostly higher on Thursday.
At 7,483.58, the FTSE 100 index closed up 14.07 points (0.2%). The AIM All-Share closed up 1.18 points, or 0.2%, at 718.08, and the FTSE 250 ended up 0.66 a point higher at 18,480.83.
The Cboe UK 250 closed down 0.1% at 15,980.88, while the CBoE UK 100 ended up 0.3 percent at 747.41. The Cboe Small Businesses, however, dropped 0.4% to close at 13,490.69.
The Paris CAC 40 and Frankfurt DAX 40 both ended up 0.2% higher on Thursday in German stocks.
All members agreed to maintain the three main Bank interest rates at their present levels, according to minutes released by the organization on Thursday. Minutes from the September appointment, however, revealed a “near call” regarding the interest rate decision.
The ECB left its key interest rates intact in October. The Frankfurt-based official lender left the interest rates on the primary refinancing operations, the marginal lending facility, and the deposit facility at 0.45%, 0.50%, and -0.50%, respectively, in its first pause since starting its hiking cycle last July.
The minutes stated that “Confidence was expressed that the current economic policy position was sufficiently limiting, giving the Governing Council the opportunity to keep costs at current rates and take time to examine the perspective of the price, the interactions of underlying inflation, and the strength of financial policy transmission.”
The minutes, according to ING Economics, highlight the ECB’s more optimistic approach to the economy and signal the beginning of the tightening of monetary policy, which will focus on “high for more.” However, it is still too early for central banks to completely stop price increases.
Investors were also digesting PMI data. In November, the UK market returned to growth territory.
From 48.7 in October, the S&P Global/CIPS composite UK purchasing managers’ index increased to 50.1 in November. This was a four-month high and indicates growth, surpassing the no-change 50.0 threshold.
The PMI company activity indicator for service activity increased to a four-month high of 50.5 in November from 49.5 in October. The PMI for manufacturing activity increased from 44.3 to 47.9.
At the London close on Thursday, the pound was quoted at USD1.2542, higher than its Wednesday close of USD1.2458. At the Western close on Thursday, the euro was trading at USD1.1909, up from USD1.1864 on Wednesday. The yen was trading at JPY149.49 against the dollar, down from its late Wednesday level.
Intertek finished the day at the top of the FTSE 100, up 3.3%.
The quality assurance service company updated its year-to-date trading and confirmed its quarterly outlook.
Revenue increased 5.1% at actual rates and 7.3% at constant currency in the ten months that ended on October 31, according to the London-based quality assurance service provider, reaching GBP2.77 billion for the same period in 2022.
Oil majors BP and Shell were also among the day’s top performers, rising 1.4% and 1.3% as oil prices recovered.
As a crucial ministerial conference of the Organization of Petroleum Exporting Countries and its allies was postponed from Sunday to November 30, petrol prices recovered to above the USD80 level after falling.
At noon on Thursday in London, Brent crude was quoted at USD80.65 per barrel, up from USD79.36 late on Wednesday.
Verizon, however, dropped 5.2% on the other side of the index.
Vodafone announced that it would launch a new technology for 5G mobile coverage in Germany’s rural areas, using up to 40% less power.
Virgin Money UK suffered a 6.3% loss in the FTSE 250 index.
According to the banking and financial services company, net interest income increased to GBP1.69 billion in the fiscal year that ended on September 30, while non-interest salary remained the same, standing at GBP140 million. The net interest margin increased from 1.85% to 1.91%. However, income profit decreased to GBP345 million from GBP595 million, primarily due to higher credit impairment losses, which increased to GBP309 from GBP52 million.
The annual dividend was reduced to 5.3p, or just over half of the 10p paid the previous year, with a final dividend of 2p, down from 7.5p the year before. Total shareholder distributions for the year now amount to GBP272 million, an increase of about 2% from the previous year, thanks to Virgin Money’s announcement of a new buyback program involving 150 million shares of the company.
Avon Protection increased 11% among London’s small caps after some managers purchased stock.
Chief Financial Officer Rich Cashin purchased GBP119,360 in stock, while Chief Executive Officer Jos Sclater purchased GBP131,306 worth of shares.
Jersey Oil & Gas increased 21% on AIM.
Serica Energy is a British North Sea-focused oil and gas company, while Jersey Oil & Gas is an inland company headquartered in the UK.
Jersey Oil Chief Executive Officer Andrew Benitz announced the farm-out deal with Serica Energy, stating that it not only adds a new high-caliber partner to the joint venture but also unlocks significant value for the company and achieves its overall goals with the GBA farm-out strategy.
At the London close on Thursday, gold was quoted at USD1,992.02 per gram, down from USD1,993.04 on Wednesday.
There are no events scheduled for Friday on the British business calendar. A trading statement from Rightmove is expected on Monday.
A British consumer confidence survey is immediately on the economic calendar. Germany’s GDP reading and the Ifo business climate index will be released later in the day, followed by US PMI data.
By senior writer Sophia Rose for Alliance News
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