3rd Apr 2019 17:07
LONDON (Alliance News) - Stocks in London ended higher on Wednesday with the FTSE 100 hitting its highest level on hopes of a trade resolution between US and China. The FTSE 100 index closed up 0.4%, or 27.16 points, at 7,418.28. The FTSE 250 ended up 1.2%, or 234.17 points, at 19,563.44, and the AIM All-Share closed up 0.4%, or 3.80 points, at 922.15.The Cboe UK 100 ended up 0.3% at 12,582.25, the Cboe UK 250 closed up 1.2% at 17,509.22, and the Cboe Small Companies ended up 0.2% at 11,186.63.In Paris the CAC 40 ended up 0.8%, while the DAX 30 in Frankfurt ended up 1.6%. "Risk appetite has rebounded once again [with] hopes of a US-China deal still the big driver today. You might think that the market is bored of trade war headlines, or ones suggesting progress anyway, but the revival in equities over the past few days suggests that the stock market is still very keen on a deal being done, with the potential for existing tariffs to be reduced or dropped entirely," said IG Group's Chris Beauchamp. The pound was quoted at USD1.3155 at the London equities close, up from to USD1.3030 at the close Wednesday, amid hopes of a soft Brexit.UK Prime Minister Theresa May met opposition Labour leader Jeremy Corbyn as she sought a last-minute consensus that would allow Britain's orderly withdrawal from the EU."The purpose of meeting the leader of the opposition today is to look at the areas on which we agree," May told the House of Commons before the talks.May said they agreed on leaving the EU with a deal that can protect jobs and ensure the end of the free movement of EU citizens to Britain.The talks took place as MPs debated a business motion that would allow cross-party, pro-EU lawmakers to table a bill to legislate against Britain leaving the EU without a deal on April 12.European Commission President Jean-Claude Juncker earlier reiterated the EU's position that the UK should get a Brexit deadline extension to May 22, provided that May is able to persuade lawmakers to approve the withdrawal agreement in the coming days.May said late Tuesday that she plans to ask Brussels for a further Brexit extension as she tries to avoid a no-deal outcome."If the UK is in a position to approve the withdrawal agreement with a sustainable majority by April 12, the EU should likewise in this case accept a delay until May 22," said Juncker.However, if the deal falls again, "no further short extension will be possible," Juncker warned, citing the risk of endangering the EU elections in late May.He added that a "no-deal" scenario of the UK crashing out of the bloc is now "very likely". On the London Stock Exchange, housebuilders ended among the blue chip risers as investors look towards the prospect of a softer Brexit outcome.Taylor Wimpey closed up 4.4%, Persimmon, up 3.7%, Barratt Developments, up 2.4% and Berkeley Group up 2.0%. At the other end of the large-cap index, tobacco companies fell on Wednesday after the US Food & Drug Administration said it is conducting an investigation into reports over several years of e-cigarette users experiencing seizures.Imperial Brands ended the worst performer blue-chip performer, down 4.1% and British American Tobacco ended down 1.7%.Tobacco companies are trying to shift away from combustible cigarettes by embracing electronic devices as an alternative to smoking.Imperial Brands produces its 'blu' vaping device as part of its Next Generation Product range, while BAT's flagship tobacco heating product is Glo.US peer Philip Morris International was down 1.4% in New York and Altria Group - which holds a stake in e-cig pioneer Juul Labs - was down 1.9%Burberry Group closed down 2.0% after Merrill Lynch downgraded the fashion house to Underperform from Neutral. In economic news, the UK service sector shrunk for the first time in over two-and-a-half years in March as domestic political uncertainty damped demand amid labor shortages, survey data from IHS Markit showed.The services purchasing managers' index, or PMI, fell to 48.9 in March from 51.3 in February. Economists had expected a score of 51.A reading below 50 suggests contraction in the sector. The services PMI reading fell below 50 for the first time since July 2016.Aside from the brief dip seen after the EU referendum, the latest reading was the joint weakest seen over the past decade and equaled the previous low point recorded in December 2012, IHS Markit said."Although there are still sub-sectors that are doing well in the current circumstances - such as some parts of professional services that thrive amid uncertainty - many others are opting to conserve cash, limit investment and keep a tight eye on costs until the fog lifts. Only when firms do get some greater clarity and can begin to plan properly again will we see how much of the current challenges are caused by underlying trends, such as slowing global growth, and how much is down to a temporary stall in confidence," said Chris Sood-Nicholls, head of global services at Lloyds Bank Commercial Banking.The euro stood at USD1.1227 at the European equities close, up from USD1.1187 late Wednesday, after positive economic data from the continent.The eurozone services PMI rose to 53.5 in March from 52.8 in February, survey results from IHS Markit showed.Among eurozone countries, Germany's services PMI edged up to 55.4 in March, the highest reading since September 2018, from 55.3 in February. The score was also above the flash reading of 54.9. In addition, preliminary data from Eurostat showed that Eurozone retail sales grew for a second consecutive month and at a faster-than-expected pace in February.On an annual basis, retail sales rose by 2.8% in February compared to the same month last year, according to Eurostat data. This was above consensus forecasts for 2.3% growth and ahead of January's 2.2% figure.Retail sales rose 0.4% month-on-month in February, surpassing economists' expectations for 0.1% growth."Eurozone retail sales grow as services remain the bright spot in a slowing economy," said Bert Colijn, economist at ING.Stocks in New York were higher at the London equities close amid optimism about the latest round of trade talks between US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He.The DJIA was up 0.1%, the S&P 500 index up 0.4% and the Nasdaq Composite up 0.7%.Brent oil was quoted at USD69.10 a barrel at the London equities close, marginally lower than USD69.34 at the close Wednesday. Oil prices fell after the Energy Information Administration reported an inventory increase of 7.2 million barrels for the week to March 29, compared to a 2.8-million-barrel build in oil inventories in the previous week.Gold was quoted at USD1,290.10 an ounce at the London equities close, flat USD1,290.70 late Wednesday.The economic events calendar on Thursday has Germany factory orders at 0700 BST and US continuing jobless claims number at 1330 BST. The UK corporate calendar on Thursday has annual results from over-50s travel agent and insurance provider Saga and equipment rentals firm HSS Hire. There are also trading statements from electrical parts maker Electrocomponents and home emergency cover provider HomeServe.
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BurberryBerkeley GroupBritish American TobaccoBarratt DevelopmentsPersimmonTaylor WimpeyImperial Brands