London stocks made a muted start to the week, which comes as no surprise with trading hours shortened and many investors already switching into year-end mode.
The FTSE 100 edged 4 points higher in early trade. The FTSE 250 slipped 0.23%, while the AIM All-Share nudged 0.1% higher. Moves were muted across the board, reflecting a market more focused on the calendar than conviction.
This is the final full week before the New Year break. London markets close early on Wednesday, remain shut on Thursday for New Year’s Day, then reopen on Friday. Thin volumes are likely to shape price action throughout.
Attention later in the week turns to the US, with minutes from December’s Federal Reserve meeting due Tuesday, followed by manufacturing PMI data on Friday. For now, traders appear content to stay cautious.
Miners provided early support. Fresnillo jumped 4.5%, leading the FTSE 100, while Glencore added 1.5% and Anglo American rose 1.1%. In contrast, defence stocks slipped back, with Babcock down 2.0% and BAE Systems off 1.8%, as investors reassessed geopolitical risk.
In the mid-caps, International Personal Finance surged 5.7% after agreeing to a £543 million all-cash takeover by BasePoint Capital. Shareholders are set to receive 235p per share, plus a final dividend, marking a hefty premium to recent prices.
Secure Trust Bank also stood out, jumping 9.7%. The lender agreed to sell its Consumer Vehicle Finance arm for just under £460 million, slightly above book value, with part of the proceeds earmarked for shareholder returns. The move follows ongoing redress costs tied to undisclosed commission payments.
Elsewhere, precious metals paused after their recent run. Gold and silver both slipped, falling more than 1% and 4% respectively, as traders locked in profits ahead of the holiday lull.