7th Apr 2020 08:51
(Alliance News) - Stock prices in London opened higher on Tuesday, as some of the world's worst-hit countries reported falling Covid-19 death rates, even as UK Prime Minister Boris Johnson was battling the new coronavirus in an intensive care unit.
Italy, Spain, France and Germany have reported lower numbers of cases and deaths in recent days. In US epicentre New York, Governor Andrew Cuomo said that for the first time the growth rate there was flat, while on Tuesday, China - where the disease first emerged late last year - reported no new deaths for the first time since January.
The large-cap FTSE 100 index was up 165.67 points, or 3.0%, at 5,748.06. The mid-cap FTSE 250 index was up 408.94 points, or 2.7%, at 15,218.30. The AIM All-Share index was up 0.9% at 686.51.
The Cboe UK 100 index was up 2.8% at 9,728.15. The Cboe 250 was up 4.9% at 13,292.15, and the Cboe Small Companies was up 0.5% at 8,090.68.
In mainland Europe, the CAC 40 in Paris and DAX 30 in Frankfurt were up 3.0% and up 3.4% respectively early Tuesday.
"With no daily coronavirus deaths in China for the first time since January, Germany aiming to end its lockdown after April 19 a falling daily death toll in Spain, improvements in Italy and signs of stabilisation in New York, investors puffed their chests out in an act of trading bravado on Tuesday," commented Spreadex analyst Connor Campbell.
On the London Stock Exchange, Carnival was the best blue-chip performer, up 22% after Saudi Arabia's sovereign-wealth fund disclosed a 8.2% stake in the world's largest cruise operator late Monday.
Carnival said Tuesday it has closed its offering of 71.9 million shares at USD8.00 each. It also closed its offering of USD1.95 billion in 5.75% senior convertible notes due in 2023.
At the other end of the large-cap index, Centrica was the worst performer, down 1.7%. The British Gas parent was downgraded to Neutral from Buy by UBS and to Underperform from Sector Perform by RBC Capital.
In the FTSE 250, Cineworld Group was the best performer, up 23% after the cinema chain said board members have deferred pay packets for the past year after the company was forced to shut its entire portfolio of 787 cinemas.
In addition, Cineworld said it has suspended dividend payments for the fourth-quarter as well as upcoming 2020, as it looks to preserve cash with the UK still under lockdown.
Cineworld added that it is talks with its lenders for ongoing liquidity requirements and with landlords, film studios and suppliers to mitigate the damage of cinema closures.
The Japanese Nikkei 225 index closed up 2.0%. In China, the Shanghai Composite ended up 2.1%, while the Hang Seng index in Hong Kong is up 0.6%. Financial markets in Shanghai reopened on Tuesday after being closed on Monday for a holiday.
The pound was quoted at USD1.2316 on Tuesday morning, up from USD1.2292 at the London equities close on Monday.
Foreign Secretary Dominic Raab will take charge of the UK government's response to the coronavirus crisis after PM Johnson was transferred to intensive care on Monday.
Johnson was admitted to intensive care after his Covid-19 symptoms worsened during Monday afternoon. Raab's first job as stand-in PM on Tuesday will be to lead the government's emergency daily coronavirus "war Cabinet" meeting with senior colleagues and the UK Chief Medical Officer Chris Whitty, and Patrick Vallance - the chief scientific adviser.
The euro was quoted at USD1.0793, down from USD1.0810.
EU finance ministers are under pressure to deliver proposals for further fiscal measures to counter the economic crisis triggered by the Covid-19 pandemic, as they head into talks on Tuesday.
There is growing optimism that eurozone finance ministers will approve new funding to the countries hurt by the coronavirus pandemic, but division over so-called 'corona bonds' is likely to remain.
In economic news from the continent, German industrial production posted a surprise but modest gain in February before the full force of the coronavirus crisis hit Europe's biggest economy.
Monthly output edged up by 0.3% in February after posting a solid 3.2% gain in January, the Federal statistical office Destatis said. Analysts had expected a 0.8% slump in February.
Against the yen, the dollar was quoted at JPY109.22, firm from JPY109.06.
Oil was at USD34.06 a barrel Tuesday morning, up from USD32.26 late Monday. Gold was trading at USD1,659.51 an ounce, up from USD1,645.22 late Monday.
By Arvind Bhunjun; [email protected]
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