28th Aug 2018 08:40
LONDON (Alliance News) - Stocks in London opened higher on Tuesday following the long holiday weekend in the UK as investors welcomed a US-Mexico trade deal, while Bunzl gained after reporting solid half-year earnings. The US and Mexico have reached a preliminary agreement on trade, US President Donald Trump said Monday, indicating he could conclude a final deal without Canada.Trump said he was looking to dump the name NAFTA, a 24-year-old North America free trade pact between the three nations that he has long derided and now said has "bad connotations".He dubbed his new breakthrough the "US-Mexico Trade Agreement", saying "it's a really good deal for both countries".At the Oval Office, Trump held a phone call with Mexican President Enrique Pena Nieto in front of reporters. The Mexican leader praised the "understanding" and continued to use the term NAFTA. He pressed for including Canada in talks."What market participants are excited about is that the US and Mexico deal will bring Canada back to the table and a similar deal can be done with other countries. On top of this, Trump could very well change his stance altogether and may try to bend China's arm to adopt structural reforms. So the game of reducing the imbalances may not remain relevant any more for Trump," said ThinkMarkets analyst Naeem Aslam.Canada's Foreign Affairs Minister Chrystia Freeland is due to arrive in the US for trade talks on Tuesday, broadcaster CBC reported.The FTSE 100 index was up up 0.6%, or 44.12 points, at 7,621.61. The mid-cap FTSE 250 index was up 0.6% 131.14 points, at 20,822.55. The AIM All-Share index was up 0.5%, or 5.04 points, at 1,097.26.The Cboe UK 100 was up 0.6% at 12,927.07, the Cboe UK 250 was up 0.3% at 18,857.17, and the Cboe UK Small Companies was up 0.1% at 12,352.09."Further supporting the FTSE 100, the dollar is rebounding from fresh 4-week lows on the back of progress in global trade talks, the corresponding sterling weakness benefiting the FTSE's internationally-exposed contingent," said Michael van Dulken, head of research at Accendo Markets.On the London Stock Exchange, NMC Health was the best blue-chip performer at the open, up 3.0% as the UAE-focused private healthcare company - noting recent press speculation - denied it was making a potential acquisition of assets in India. "NMC denies such news and reaffirms its current focus on the Gulf Cooperation Council market for capital deployment. The Fertility business and operations & management vertical remain the only exceptions to the above and maintain a wider geographic focus," NMC said.Bunzl was up 2.6% after the distribution and outsourcing group said it delivered "another good set of results" with revenue growth driven by strong organic growth and acquisitions. For the half year ended June 30, revenue rose 5% to GBP4.34 billion from GBP4.12 billion last year and was up 12% at constant currency rates. Pretax profit rose 8% to GBP197.3 million from GBP181.9 million last year. The company raised its interim dividend 9% to 15.2 pence from 14.0p the year before."Looking forward to the rest of the year, the board is confident that the prospects for the group are positive," said Chief Executive Frank van Zanten. Bunzl also said it acquired Oslo-based catering equipment supplier Enor, which is its first purchase in Norway. It didn't disclose what it paid for Enor, which had about GBP27 million in revenue in 2017.The Japanese Nikkei 225 index ended up 0.1% on Tuesday. In China, the Shanghai Composite closed down 0.1%, while the Hang Seng index in Hong Kong is up 0.1%. In Europe early Tuesday, the CAC 40 in Paris was up 0.2% while the DAX 30 in Frankfurt was up 0.4%.The euro was quoted firm against the dollar at USD1.1684 early Tuesday, from USD1.1624 at the London equities close on Friday.The pound was firm against the dollar quoted at USD1.2870 compared to USD1.2852 late Friday.In political news, Theresa May dismissed fears of a no-deal Brexit apocalypse as she played down the UK chancellor of the exchequer's warnings of major economic consequences.The UK prime minister repeated claims that no agreement with the EU "would not be a walk in the park" but "wouldn't be the end of the world", initially made by the World Trade Organisation's Roberto Azevedo.May added the government is putting in place measures to ensure it can "make a success of no deal" and remains confident it can do similar with a "good deal" - which she maintained it was possible to agree.May also said Philip Hammond was highlighting "work in progress" figures released in January when he published a letter just hours after the government started revealing its no-deal Brexit preparations.Still to come in the economic events calendar is Italy business confidence at 0900 BST, eurozone M3 money supply figures at 0900 BST and the UK inflation report hearings at 1100 BST.Related Shares:
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