The FTSE 100 is taking a liking to the 8,280 level, having spent the last two sessions moving little more than 10 points in either direction as trade quietens down for the Thanksgiving period.
A lack of global macro catalysts and a slow corporate calendar has kept London’s leading index tethered to a tight range after a reasonably strong start to the week.
“The FTSE has held onto modest gains earned earlier this week, with few cues to take from global markets after the US took a breather to gather for Thanksgiving. Retail stocks will be on traders’ minds today as shoppers trawl the aisles and their screens for Black Friday bargains,” said Derren Nathan, head of equity research, Hargreaves Lansdown.
There was some evidence of buying pressure in the FTSE 100’s retailers, but nothing to write home about. B&M, Sainsbury’s, Next, and Kingfisher were all higher but struggled to rise more than 1%.
Investors also favoured the housebuilders after Zoopla data gave the market reason to be upbeat about the UK property market next year.
“Real estate is another sector in focus after the latest Zoopla House Price Index report painted an optimistic picture for sellers in 2025. After prices rose 1.5% in the year to October, it’s expecting a 2.5% bump to prices in 2025 and a 5% rise in volumes.
“Zoopla’s not forecasting much movement if any in Mortgage rates over 2025 but does think that lenders will have a more relaxed approach to affordability assessments. Activity is likely to be particularly elevated over the coming months as buyers rush to avoid the return of higher stamp duty rates in April. Agreed sales are currently 19% higher than they were 12 months ago.”
Persimmon ticked 0.7% higher and Taylor Wimpey added 0.4%.
Strength in mining companies and IMI was offset by weakness in banks and utility companies. BAE Systems was the top faller after Bank of America cut the defence stock to ‘underperform’ and slashed its price target to 1,240p.