1st Jul 2019 07:41
(Alliance News) - Stock prices in London are seen opening sharply higher on Monday, tracking gains in Asian equity markets, after the US and China agreed a truce in their protracted trade war. In company news, private equity firm Strategic European Investment Group said it was considering taking a stake in FTSE 250-listed Aston Martin Lagonda, as one of Aston Martin's directors sold shares. Packaging firm DS Smith sold two of its European businesses to a US buyer.IG futures indicate the FTSE 100 index is to open 66.77 points higher at 7,492.40. The blue chip index closed up 23.30 points, or 0.3%, at 7,425.63 on Friday. Strategic European Investment Group said it was considering making a cash offer for 6.8 million shares, or a 3% stake, in sports car maker Aston Martin Lagonda at 1,000 pence per share. Shares in Aston Martin closed at 1,005p on Friday. Meanwhile, Aston Martin said an investment vehicle of Non-Executive Director Najeeb Al Humaidhi sold 3 million shares at a price of 982.50p each on Friday, in a deal worth around GBP29.5 million. Al Humaidhi's total shareholding after the sale was not disclosed. FTSE 100-listed DS Smith said it completed the sale of two packaging businesses in north west France and in Portugal to Memphis, Tennessee-based International Paper for EUR63 million. The paper and packaging firm said the sale fulfils the commitment made to the European Commission in relation to the clearance of its acquisition of Europac, which completed in January. DS Smith Chief Executive Miles Roberts said: "We are delighted to have completed this transaction, which ensures that the business and colleagues have found a good home at an attractive price for the business. The integration of Europac is progressing well and we are very pleased with the quality of our customer offering in the region."Mexican gold miner Fresnillo said it is to record a USD8 million charge on interim profit over tax treatment of mining works in Mexico. Fresnillo said it is to align tax treatment across all underground mining operations.In weekend news, the US will not impose new tariffs on Chinese goods, US President Donald Trump announced following a meeting with Chinese President Xi Jinping, allowing more time for negotiations on trade and market access.Trump also said that he would allow US companies to sell their products to Chinese firm Huawai, but that granting the telecommunications giant access to the US market would be dealt with further down the line, if talks progress.Adding to the weekend's frantic diplomacy, Trump met Kim Jong Un in the Demilitarized Zone on Sunday, shaking hands with the North Korean leader over the concrete slab marking the line between the two Koreas, before becoming the first sitting US president to set foot in North Korea.The Japanese Nikkei 225 index closed up 2.1%. In China, the Shanghai Composite is up 2.0%. Financial markets in Hong Kong were closed on Monday for the Special Administrative Region Establishment Day holiday. The manufacturing sector in China disappointed economist expectations after it fell back into contraction in June for the first time in four months, with new orders and output both both weakening.Data from the Caixin China General Manufacturing Purchasing Managers' Index fell to 49.4 points from 50.2 in May. This is the first time in four months the print fell below the 50 point mark which separates expansion from contraction in the sector.Economists had forecast the print to weaken to 50.0 points in June.Japan's manufacturing activity contracted in June. The Manufacturing Purchasing Managers' Index reading came in at 49.3 in June, down from 49.5 in May. The score was below the line of 50 that separates expansion from contraction. June brought a deterioration in business conditions for the first time in more than six years in Ireland as the manufacturing sector dipped into contraction.Data from IHS Markit gave the AIB Ireland manufacturing purchasing managers' index at 49.8 for June, down from 50.4 in May.The pound was quoted at USD1.2682 early Monday, down from USD1.2705 at the London equities close Friday. The economic events calendar on Monday has manufacturing PMI readings from Italy, France, Germany, the eurozone and UK at 0845 BST, 0850 BST, 0855 BST, 0900 BST and 0930 BST respectively. On Monday, the Organisation of the Petroleum Exporting Countries and its allies will congregate in Vienna, Austria to discuss oil production levels. The 176th OPEC meeting will start on Monday and end on Tuesday.
Related Shares:
Smith (DS)FresnilloAston Martin Lagonda