LONDON (ShareCast) - (Sharecast News) - London stocks ended slightly lower on Monday as investors assessed the outcome of Germany's national election and market movements driven by corporate activity.
The FTSE 100 slipped marginally by 0.01% to close at 8,658.98, while the more domestically-focused FTSE 250 fell 0.63% to 20,484.39.

In currency markets, sterling was last up 0.11% on the dollar to trade at $1.2646, while it slipped 0.13% against the euro, changing hands at €1.2066.

"The strong move higher in the German index has been mostly eroded this afternoon, while Wall Street's positive open has given way to more downside, particularly in tech stocks," said IG chief market analyst Chris Beauchamp.

"Friday's late slump has cast a shadow over sentiment, while hopes over a Ukraine deal have ebbed away."

Beauchamp noted that the Nasdaq 100 slipped to a two-week low in opening trading on Monday afternoon, although it was "barely a week" since its last record high.

"Nvidia's hotly anticipated earnings loom large, being the only major event of note this week.

"While not directly connected, it is likely that the ongoing tensions in the Western alliance over Ukraine will help keep bullish sentiment in check."

Inflation accelerates in the eurozone in January

It was a quiet day on the data front in the UK on Monday, but on the continent, eurozone inflation accelerated for a fourth consecutive month in January, reaching a six-month high, according to final data from Eurostat.

Consumer prices in the single-currency bloc rose 2.5% year-on-year, up from 2.4% in December, confirming preliminary estimates.

Inflation had been rising steadily since hitting a three-year low of 1.7% in September.

Among member states, Ireland, Italy, and Finland recorded the lowest inflation rates at 1.7%, while Belgium and Croatia saw the highest at 4.4% and 5.0%, respectively.

Core inflation, which excludes volatile components, remained at 2.7% for the fifth straight month.

Meanwhile, German business sentiment remained unchanged in February, according to the latest survey from the Ifo Institute.

The business climate index held steady at 85.2, while expectations improved slightly to 85.4 from 84.3 in January.

However, the current conditions index weakened to 85.0 from 86.0.

Sectoral data showed an improvement in manufacturing and trade, but a decline in services and construction, indicating a mixed outlook for Europe's largest economy.

"Sentiment among companies in Germany continues to be sceptical," commented Ifo Institute president Clemens Fuest.

"While companies were slightly less satisfied with current business, expectations brightened somewhat. The German economy is waiting to see how things develop."

Chemring and Wood Group surge, B&M in the red

On London's equity markets, shares in British Gas owner Centrica climbed 4.1% on Monday, extending gains from last week after the company delivered better-than-expected full-year results.

Investors remained upbeat following Centrica's dividend hike and a £500m share buyback announcement.

National Grid rose 1.96% after confirming the sale of its US onshore renewables division to Brookfield Asset Management and its institutional partners for $1.7bn.

The deal aligned with the company's strategy to focus on core regulated energy infrastructure.

Defence firm Chemring surged 12.17% after reports that private equity group Bain Capital had approached the company with a takeover proposal.

According to Sky News, an initial bid may have been pitched at 390p per share.

John Wood Group soared 31.44% after confirming a takeover approach from Dubai-based Sidara.

The oil services firm responded to speculation with a brief statement advising shareholders to take no action on the proposal.

Deliveroo shares jumped 6.42% after Just Eat Takeaway announced it would be acquired by Dutch private equity firm Prosus in a €4.1bn deal.

The news lifted sentiment across the food delivery sector.

On the downside, B&M European Value Retail dropped 2.04% after the discount retailer cut its profit guidance again, warning of economic uncertainty.

The company said it now expected annual adjusted EBITDA of between £605m and £625m, down from the £620m to £650m range issued in January.

B&M also announced that chief executive officer Alex Russo would step down at the end of April.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,658.98 0.00%
FTSE 250 (MCX) 20,484.39 -0.63%
techMARK (TASX) 4,713.36 0.32%

FTSE 100 - Risers

Centrica (CNA) 151.05p 4.10%
BAE Systems (BA.) 1,305.00p 3.94%
Vodafone Group (VOD) 68.40p 3.32%
Imperial Brands (IMB) 2,743.00p 2.20%
SSE (SSE) 1,526.00p 2.11%
United Utilities Group (UU.) 981.20p 2.06%
National Grid (NG.) 977.00p 1.96%
Unilever (ULVR) 4,483.00p 1.96%
Airtel Africa (AAF) 140.60p 1.88%
British American Tobacco (BATS) 3,014.00p 1.65%

FTSE 100 - Fallers

Entain (ENT) 707.00p -4.20%
Flutter Entertainment (DI) (FLTR) 21,420.00p -3.90%
Scottish Mortgage Inv Trust (SMT) 1,074.00p -3.07%
Antofagasta (ANTO) 1,769.50p -2.77%
London Stock Exchange Group (LSEG) 11,300.00p -2.46%
Fresnillo (FRES) 758.00p -2.38%
Diploma (DPLM) 4,526.00p -2.37%
CRH (CDI) (CRH) 7,874.00p -2.21%
InterContinental Hotels Group (IHG) 9,696.00p -2.06%
Glencore (GLEN) 317.95p -1.82%

FTSE 250 - Risers

Wood Group (John) (WG.) 37.32p 41.36%
Deliveroo Class (ROO) 141.80p 4.65%
Chemring Group (CHG) 373.50p 4.33%
Wizz Air Holdings (WIZZ) 1,561.00p 2.97%
Drax Group (DRX) 647.50p 2.94%
Tate & Lyle (TATE) 565.00p 2.73%
QinetiQ Group (QQ.) 395.00p 2.65%
Ithaca Energy (ITH) 142.80p 1.85%
Kainos Group (KNOS) 762.00p 1.74%
Inchcape (INCH) 691.00p 1.62%

FTSE 250 - Fallers

Raspberry PI Holdings (RPI) 624.00p -7.07%
Indivior (INDV) 643.50p -6.54%
Watches of Switzerland Group (WOSG) 496.80p -4.46%
Fidelity China Special Situations (FCSS) 259.50p -4.24%
Oxford Nanopore Technologies (ONT) 112.00p -4.11%
Burberry Group (BRBY) 1,022.00p -3.86%
Endeavour Mining (EDV) 1,674.00p -3.79%
Allianz Technology Trust (ATT) 421.00p -3.66%
Polar Capital Technology Trust (PCT) 351.00p -3.57%
Baillie Gifford US Growth Trust (USA) 253.50p -3.43%

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