(Alliance News) - Stock prices in London opened lower on Friday in a downbeat reaction to the hefty US financial aid plans set out by the incoming Biden administration, while Aveva shares rose on an optimistic outlook.
The FTSE 100 index was down 30.16 points, or 0.4%, at 6,771.80. The mid-cap FTSE 250 index was down 42.74 points, or 0.2%, at 20,733.01. The AIM All-Share index was flat at 1,183.16.
The Cboe UK 100 index was down 0.2% at 674.85. The Cboe 250 was down 0.1% at 17,964.11, and the Cboe Small Companies was flat at 12,333.56.
In Paris, the CAC 40 was up 0.2%, while Frankfurt's DAX 30 was 0.1% higher.
On the London Stock Exchange, Aveva Group was the best blue chip performer, up 5.1% after the industrial software company said its third quarter revenue was boosted by contract renewals.
In the three months to December 31, organic constant currency revenue grew by over 26%. Following the "strong quarter of renewals", Aveva's revenue in the nine months ended December grew 1.5% annually, on an organic constant currency basis.
"The board remains confident in the full year outlook for Aveva. Notwithstanding the disruption seen to the trading environment in 2020, the trend towards the digitalisation of the industrial world is strong and the board remains excited about the significant growth opportunities ahead," the company said.
Segro shares were up 0.5% after the industrial property investor said it has collected 98% of the total GBP417 million rent due for 2020.
British American Tobacco was up 0.5% after it noted that the UK Serious Fraud Office has discontinued an investigation of suspicions of corruption in the conduct of business by the company.
In the FTSE 250, Indivior was the best performer, up 9.0% after the drugmaker raised its 2020 revenue guidance to a range between USD645 million and GBP650 million from a previous guided range of USD595 million to GBP620 million.
In addition, Indivior lifted its 2020 net revenue guidance for Sublocade to USD128 million to GBP130 million from USD120 million to GBP125 million. As such, Indivior expects to deliver adjusted pretax profit ahead of its previous expectations.
The pound was quoted at USD1.3666 on Friday morning, lower from USD1.3681 at the London equities close Thursday, after data showed the UK economy shrank in November.
On a monthly basis, the UK gross domestic product shrank 2.6% in November after posting 0.6% growth in October, as restrictions were in place to varying degrees across all four nations of the UK during November.
"With a rebound (or even a flat outturn) in December, the economy would avoid contraction in the fourth quarter overall. However, with tighter containment measures in the New Year across the UK, a decline in GDP in the first quarter seems likely. The rollout of vaccines offers hope for an eventual move towards some semblance of pre-Covid normality," said analysts at Lloyds.
The euro stood at USD1.2120, lower from USD1.2145. Against the yen, the dollar was trading at JPY103.74, flat from JPY103.72.
US President-elect Joe Biden will propose injecting USD1.9 trillion into the economy when he takes office next week, as evidence mounts that the recovery from the sharp downturn caused by Covid-19 is flagging.
Dubbed the American Rescue Plan, the proposal released Thursday includes a host of measures aimed at revitalizing the world's largest economy.
The plans include an extra USD1,400 cash handout for individuals - to top up the USD600 in last month's stimulus - a hike in the minimum wage to USD15 an hour, and billions of dollars to ramp up vaccinations so that 100 million are administered in 100 days.
Top Senate Democrat Chuck Schumer and House Speaker Nancy Pelosi embraced Biden's plan, vowing to put it before lawmakers.
"Market reaction to the stimulus was muted given the need for eventual repayment of the debt which could manifest in higher taxes. Even so, in providing a prop for economic recovery, the news is of course positive and investors remain generally optimistic on the medium term view," said Interactive Investor's Richard Hunter.
The Japanese Nikkei 225 index closed down 0.6%. In China, the Shanghai Composite closed flat, while the Hang Seng index in Hong Kong ended up 0.5%.
Brent oil was trading at USD55.71 a barrel, firm from USD55.69 a barrel at the London equities close Thursday. Gold was priced at USD1,852.44 an ounce, up from USD1,847.36.
Friday's economic calendar has US retail sales at 1330 GMT followed by US industrial production at 1415 GMT.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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British American Tobacco (BATS)
Segro (SGRO)
Indivior (INDV)