London close: Stocks end down as investors mull US inflation print

(Sharecast News) - London stocks ended Friday's session in the red even as the latest US inflation print underpinned expectations of a rate cut from the Federal Reserve next week.

The FTSE 100 closed down 0.5% at 9,667.01.

Investors mulled figures from the US Bureau of Economic Analysis, which showed that the core personal consumption expenditures price index - the Fed's preferred measure of inflation - rose 2.8% on the year in September, down from 2.9% the month before.

This was 0.1 percentage point lower than expectations.

On home shores, the latest figures from Halifax showed that house price growth stalled in November in the run-up to the Budget.

House prices were flat on the month, having risen 0.5% in October. On the year, growth slowed to 0.7% last month from 1.9% in October. This was the weakest rate of growth since March 2024.

The average price of a house was �299,892 last month, versus �299,754 in October.

Amanda Bryden, head of mortgages at Halifax, said the slowdown in annual growth "largely reflects the base effect of much stronger price growth this time last year".

"This consistency in average prices reflects what has been one of the most stable years for the housing market over the last decade. Even with the changes to Stamp Duty back in spring and some uncertainty ahead of the Autumn Budget, property values have remained steady," she said.

"While slower growth may disappoint some existing homeowners, it's welcome news for first-time buyers. Comparing property prices to average incomes, affordability is now at its strongest since late 2015. Taking into account today's higher interest rates, mortgage costs as a share of income are at their lowest level in around three years.

"Looking ahead, with market activity steady and expectations of further interest rate reductions to come, we anticipate property prices will continue to grow gradually into 2026."

In equity markets, Ocado ended the day just a smidgen higher, having surged in early trade after it said US supermarket chain Kroger will pay it $350m in compensation for the closure of three warehouses.

The payment also reflects Kroger's decision not to proceed with another customer fulfilment centre in Charlotte, North Carolina, one of the two planned CFCs due to go live in 2026.

Ocado earlier this month said Kroger's decision to fulfil online orders from its own stores in highly populated areas would cost it $50m in lost licensing fees.

Greggs rallied as JPMorgan initiated coverage of the stock at 'overweight', highlighting significant re-rating potential.

Safety equipment and technology group Halma gained as it announced the �230m acquisition of E2S Group, a London-based manufacturer of industrial hazard detection devices.

Trustpilot was also in the black, recovering some poise, having tumbled on Thursday after short seller Grizzly Bear disclosed a short position in the shares and said it had uncovered "mafia-style" extortion campaigns against non-paying businesses.

On the downside, Big Yellow slumped after it said late on Thursday that it had ended takeover talks with Blackstone.

Blackstone announced in October that it was considering a potential takeover offer for the London-listed self-storage firm. Under UK takeover rules, it had until 8 December to either make a firm offer or walk away.

Market Movers

FTSE 100 (UKX) 9,667.01 -0.45%

FTSE 250 (MCX) 22,063.95 -0.03%

techMARK (TASX) 5,584.69 -0.01%

FTSE 100 - Risers

Rightmove (RMV) 522.80p 3.33%

JD Sports Fashion (JD.) 80.50p 2.76%

Smith & Nephew (SN.) 1,231.50p 2.72%

3i Group (III) 3,153.00p 2.47%

Flutter Entertainment (DI) (FLTR) 15,535.00p 1.64%

ICG (ICG) 2,052.00p 1.56%

Croda International (CRDA) 2,670.00p 1.54%

WPP (WPP) 290.90p 1.51%

Burberry Group (BRBY) 1,213.00p 1.44%

Halma (HLMA) 3,618.00p 1.11%

FTSE 100 - Fallers

Smiths Group (SMIN) 2,458.00p -3.50%

Metlen Energy & Metals (MTLN) 42.10p -2.73%

BP (BP.) 465.00p -2.61%

LondonMetric Property (LMP) 190.20p -1.95%

Severn Trent (SVT) 2,816.00p -1.67%

Airtel Africa (AAF) 314.20p -1.65%

Standard Chartered (STAN) 1,662.00p -1.65%

Prudential (PRU) 1,095.50p -1.60%

Imperial Brands (IMB) 3,300.00p -1.52%

Vodafone Group (VOD) 95.30p -1.45%

FTSE 250 - Risers

Trustpilot Group (TRST) 129.20p 13.31%

Greggs (GRG) 1,597.00p 5.28%

SSP Group (SSPG) 164.90p 4.49%

Diversified Energy Company (DI) (DEC) 1,140.00p 4.39%

Elementis (ELM) 160.20p 4.12%

Pinewood Technologies Group (PINE) 359.50p 2.92%

Pantheon Infrastructure (PINT) 105.50p 2.84%

Bluefield Solar Income Fund Limited (BSIF) 70.40p 2.84%

Unite Group (UTG) 515.50p 2.81%

Moonpig Group (MOON) 211.50p 2.60%

FTSE 250 - Fallers

Baltic Classifieds Group (BCG) 186.00p -5.70%

Mony Group (MONY) 192.00p -5.31%

Trainline (TRN) 219.80p -4.91%

Big Yellow Group (BYG) 1,070.00p -4.30%

Oxford Nanopore Technologies (ONT) 130.30p -4.30%

Frasers Group (FRAS) 704.00p -3.62%

Ithaca Energy (ITH) 177.80p -2.92%

Spire Healthcare Group (SPI) 181.20p -2.76%

Safestore Holdings (SAFE) 729.00p -2.54%

British Land Company (BLND) 411.00p -2.53%