18th Feb 2019 08:43
LONDON (Alliance News) - Stocks in London were mixed on Monday with the FTSE 100 retreating from four-months highs reached on Friday, as investors remain hopeful a trade deal can be reached between the US and China before the March 1 deadline. The FTSE 100 was 6.07 points lower, down 0.1% at 7,230.87 early Monday. The FTSE 250 was down 27.74 points, or 0.2%, at 18,959.49, and the AIM All-Share was up 0.1% at 908.67.The Cboe UK 100 was down 0.1% at 12,286.85, while the Cboe UK 250 was 0.1% lower at 16,906.18 and the Cboe UK Small Companies flat at 11,210.08. In mainland Europe, the CAC 40 in Paris and the DAX 30 in Frankfurt were up 0.2% and 0.1% respectively."The FTSE was the laziest of the European indices, backsliding 0.1%. With another week of Brexit limbo on the cards - Prime Minister Theresa May is off to Brussels once again, trying to re-negotiate the EU's non-negotiables, leaving the various Tory factions to seethe back home - and the absence of the US markets this afternoon thanks to Presidents' Day, there was little real impetus for the UK index to move any higher, especially given it ended last week at a fresh 4-month peak," said Spreadex analyst Connor Campbell.On the London Stock Exchange, Reckitt Benckiser was the best blue-chip performer, up 2.5% after the household goods firm said its profit increased in 2018 as a result of receiving a full-year contribution from its infant formula & child nutrition acquisition in the US.Group revenue amounted to GBP12.60 billion, a 10% rise from GBP11.45 billion the year before and in line with consensus of GBP12.59 billion.Reckitt declared a final dividend of 100.2 pence per share, up 2.6% from 97.7p the year before. This bought its total dividends paid for the year to 170.7p from 164.3p, an increase of 3.9%.Spirax-Sarco Engineering was up 0.5% after the engineer said it is in exclusive talks to buy French cable maker Thermocoax Development for GBP139 million.The FTSE 100-listed firm is in talks with Thermocoax-owners Chequers Capital, TCR Capital and other minority shareholders to buy the firm on a debt- and cash-free basis for EUR158 million.At the other end of the large cap index, Centrica was the worst performer, down 1.4% after Berenberg downgraded the British Gas parent to Hold from Buy. Pearson was down 0.6% after the education publisher said Monday it has agreed to sell its US K12 courseware business in a "major milestone" for its simplification programme.The FTSE 100-listed media group agreed to sell the business - which provides textbooks and other resources to students in the US from kindergarten to 12th grade, the last year before university - for USD250 million to Nexus Capital Management.The deal will see Pearson receive an initial USD25 million cash payment. The remaining USD225 million will be repaid over three to seven years through an unconditional vendor note."The short view is that, while the headline price looks broadly in line with consensus (though more at the lower end), the structure of the deal won't be taken well and the impact on earnings is probably more than would have been anticipated," said Liberum analyst Ian Whittaker.The Japanese Nikkei 225 index closed up 1.8%. In China, the Shanghai Composite closed up 2.7%, while the Hang Seng index in Hong Kong closed up 1.6%.In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 1.7%, S&P 500 up 1.1% and Nasdaq Composite up 0.6%.A statement from the White House on Friday said high level US-China trade talks this week led to "progress between the two parties", but noted "much work remains".US President Donald Trump said the meetings were very productive and he is ready to extend the March 1 deadline and hold off a planned tariff hike on Chinese goods."An extension looks the most likely outcome, with 90 days just not enough time to reach a comprehensive deal. Trump has indicated that he could support an extension despite claiming to like tariffs during his press conference on Friday, something that will comfort investors at a time when global growth concerns are posing a significant risk for markets," said Oanda senior market analyst Craig Erlam.Financial markets in the US are closed on Monday for the President's Day holiday.The pound was up against the dollar, quoted at USD1.2900 from USD1.2855 at the London equities close Friday.In political news, top-level Brexit negotiations between the UK and the EU will resume this week as UK Prime Minister Theresa May prepares to return to Brussels to gain concessions on her withdrawal deal.May will meet European Commission President Jean-Claude Juncker in the coming days, while Brexit Secretary Stephen Barclay will hold talks with the EU's chief negotiator Michel Barnier on Monday.The pair are expected to discuss the proposals of the Alternative Arrangements Working Group of Tories, who have been seeking a compromise solution to avoid the need for the controversial Irish backstop.On the economic front, average price tag on a home in the UK is just GBP714 higher than it was a year ago, according to a property website. The average asking price in February is GBP300,715, an annual increase of just 0.2% or GBP714, Rightmove said.
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