LONDON MARKET CLOSE: Miners Send FTSE 100 Higher As Intu Sinks Midcaps

LONDON (Alliance News) - Stocks in London ended mixed on Thursday, with miners driving the FTSE 100 higher and Intu Properties weighing on the FTSE 250 after a second takeover attempt collapsed.The FTSE 100 index closed up 34.43 points, or 0.5%, at 7,038.95. The FTSE 250 ended down 30.70 points, or 0.2%, at 18,609.03, and the AIM All-Share closed up 2.32 points, or 0.3%, at 932.39.The Cboe UK 100 ended up 0.7% at 11,973.21, the Cboe UK 250 closed down 0.4% at 16,713.36, but the Cboe Small Companies ended down 0.1% at 11,416.25."Following a Fed inspired rally on Wall Street, the FTSE 100 jumped higher on the open and retained its gains across the session. Whilst banks initially traded higher following a comfortable pass in the most recent stress test, commodity stocks did most the heavy lifting as they traced base metals and oil prices higher. A weaker pound also offered support to the UK index," said City Index analyst Fiona Cincotta.On the London Stock Exchange, Ashtead Group ended as the best blue chip performer, up 4.5%, after the equipment rentals firm said Chief Executive Officer Geoff Drabble will step down from his role with effect from May 2019 and from the company in November next year. Drabble will be replaced by current Chief Operating Officer Brendan Horgan, who is also chief executive of Sunbelt Rentals, Ashtead's North American business and its biggest earnings contributor. Horgan has been chief operating officer at Ashtead since January, and chief executive for Sunbelt for seven years.Commenting on the appointment, analysts at UBS said: "We see good continuity and expect little disruption - Brendan has been with the company since 2011, has a very strong internal franchise and track record individually, and has been building a presence with the investor community."In addition, heavyweight miners ended in the green amid higher base metal prices with Antofagasta up 4.3% Anglo American, up 3.5% and Glencore up 3.2%.At the other end of the large cap index, British Land ended as the worst performer, down 5.5%, after Exane BNP downgraded the commercial property company to Neutral from Outperform. Land Securities and Severn Trent closed down 4.7% and 2.1%, respectively, after the stocks went ex-dividend, meaning new buyers no longer qualify for the latest dividend payout. Housebuilders once again ended in the red as Brexit uncertainty continued to torment the sector. Taylor Wimpey, Berkeley Group, Barratt Developments and Persimmon closed down 2.0%, 1.9%, 1.7% and 2.4%, respectively. "The property sector has been one of the hardest hit on the FTSE 100, as uncertainty and fears over the potential impact of Brexit drove away a consortium of bidders for the shopping centre owner Intu. Yesterday's shocking report from the BoE has certainly drawn a significant amount of criticism for what could be yet another relatively sensationalist and off-the-mark prediction from Mark Carney & co," said IG market analyst Joshua Mahony."Whether we do see that 30% drop in house prices and 50% fall in commercial valuations materialise, the sheer scale of the potential weakness is certainly going to scare off most investors until we see some form of Brexit certainty," Mahony added. In the FTSE 250, Intu Properties saw around GBP1.06 billion slashed off its total market value, closing down 41% in the process, after a consortium announced it does not intend to make a formal GBP2.85 billion offer for the shopping mall operator amid ongoing market uncertainty.Intu said market conditions meant the consortium - led by billionaire John Whittaker's Peel Group - could not continue with its proposed offer within the timeframe set out by City takeover rules.This is the second time in 2018 that Intu has been left at the altar. In April, peer Hammerson dropped its GBP3.40 billion offer for Intu after deciding it was "no longer in the best interests of shareholders". Hammerson ended as the second worst midcap performer, down 7.7%.In addition, Intu said it intends to reduce its dividend payment, starting with its final payout for 2018.Troubled Thomas Cook closed down 6.7% after the travel agent confirmed it swung to an annual loss after its earnings were hurt by a number of one-off charges and by weakness in its tour operating business.For the year ended September 30, the group swung to a GBP53.0 million pretax loss from a GBP43.0 million profit the year prior.As flagged in Tuesday's profit warning, adjusted earnings before interest and taxes came in at GBP250.0 million, down GBP58 million, or 19%, year-on-year on a like-for-like basis. In line with what was announced on Tuesday, Thomas Cook decided to suspend its dividend. Last year, it proposed a 0.6 pence per share payout.The pound was flat quoted at USD1.2780 at the London equities close, compared to USD1.2750 at the close Wednesday, as Brexit uncertainty continued to hang over the currency. In domestic political news, UK Prime Minister Theresa May dismissed calls for a second Brexit referendum, warning it would mean undoing the deal agreed with Brussels.Appearing before senior MPs, the UK prime minister refused to be drawn on what would happen if the Commons votes down the Withdrawal Agreement in the crunch vote on December 11.However, May insisted a so-called "people's vote" was not an option as it could not be held before March 29, 2019 when the UK leaves the EU.May's warning came amid intense speculation that the government is heading for defeat in the vote on December 11, with a raft of Conservative Party MPs declaring publicly they intend to oppose the deal."Political uncertainty hangs over the pound. Yesterday sterling got an artificial rise on the back of the weak US dollar, and now the table have turned. Theresa May's withdrawal agreement has little support, and dealers are afraid of an no-deal Brexit, especially in light of the Bank of England's [doomsday] warning yesterday," said CMC Markets analyst David Madden. In Paris the CAC 40 ended up 0.5%, while the DAX 30 in Frankfurt ended flat.The euro was up at USD1.1383 at the European equities close, against USD1.1275 late Wednesday. In economic news from the continent, Germany's consumer price inflation slowed more-than-expected in November, preliminary data from the Federal Statistical Office showed on Thursday.The consumer price index rose 2.3% year-on-year following a 2.5% increase in October, which was the highest in over a decade. Economists had expected 2.4% inflation for November. In September, inflation was 2.3%.The harmonized index of consumer prices, or HICP, rose 2.2% year-on-year in November after a 2.4% increase in October. Economists had forecast 2.3% inflation. In September, the price growth was 2.2%.Stocks in New York were lower at the London equities close following the rally in the previous session, after comments from US Federal Reserve Chairman Jerome Powell were interpreted as dovish for interest rates.The DJIA was down 0.3%, the S&P 500 index down 0.4% and the Nasdaq Composite down 0.5%.In a speech to the Economic Club of New York on Wednesday, Powell noted interest rates are still low by historical standards and said rates are currently "just below the broad range of estimates of the level that would be neutral for the economy - that is neither speeding up nor slowing down growth".The latest remarks seem to conflict with comments Powell made early last month, when he described rates as a "long way from neutral". He also said the economy is close to achieving both of the Fed's objectives of promoting maximum employment and price stability.Ahead, the minutes from the FOMC's November meeting will be released at 1900 GMT. Trade issues now return to the fore as Group of 20 Summit of world leaders kicks off in Buenos Aires, Argentina on Friday, with the weekend's meeting between President Donald Trump and Chinese President Xi Jinping high on the agenda. Trump and Xi are due to hold a dinner meeting on Saturday on the sidelines of the G20 summit in Buenos Aires, Argentina, although a substantive breakthrough is seen as unlikely.On the economic front, personal income and spending in the US both increased by more than anticipated in the month of October, according to a report released by the Commerce Department.The Commerce Department said personal income climbed by 0.5% in October after edging up by 0.2% in September. Economists had expected income to rise by 0.4%.Disposable personal income, or personal income less personal current taxes, also increased by 0.5% in October following a 0.2% uptick in September.Notably, a reading on inflation said to be preferred by the Federal Reserve showed the annual rate of core consumer price growth edged down to 1.8% in October from 1.9% in September.Brent oil was firm quoted at USD59.75 a barrel at the London equities close from USD59.25 at the close Wednesday.Gold was higher as the dollar weakened following the dovish comments from Powell, quoted at USD1,227.20 an ounce at the London equities close against USD1,212.89 late Wednesday."Gold rallied as the dollar and yields both sold off yesterday on the back of the surprisingly less hawkish comments from the Federal Reserve chairman. Clearly some speculators are holding fire until the G20 summit is out of the way. However, we think that the dollar selling will resume and so the buck-denominated metal could break higher," said Forex.com analyst Fawad Razaqzada.The UK corporate calendar Friday has full year results from AIM-listed payment network provider Earthport.The economic events calendar on Friday has UK Nationwide housing prices readings at 0700 GMT, Germany retail sales numbers at 0700 GMT, Italy inflation and unemployment figures at 0900 GMT and 1000 respectively and eurozone unemployment and inflation readings at 1000 GMT.