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LONDON MARKET OPEN: US Tariff Move Fails To Lift Mood As China Weakens

Wed, 14th Aug 2019 08:55

(Alliance News) - Despite strong gains in the US overnight and broadly upbeat trade in Asia, London stocks got off to a soggy start on Wednesday, after poor economic readings from China and Germany.Stocks on Tuesday got a boost after the US decided it would go ahead with the latest tranche of tariffs on China next month, but would delay the start for cell phones, laptops, computer monitors, video game consoles and some toys, footwear and clothing.However, ING was sceptical of the move. "The trade war is still on, and the latest delay seems self-serving for the US which can load up for the gift-giving season before tariffs stick up prices early next year," said ING, adding that markets "remain nervous".In addition, London's blue-chip index was weighed down by miners following weak Chinese industrial data.The FTSE 100 was 0.1% lower at 7,247.01, while the FTSE 250 was marginally lower at 19,006.07. The AIM All-Share was flat at 877.25.The Cboe UK 100 index was down 0.1% at 12,281.40. The Cboe UK 250 was down 0.1% at 16,891.40, while the Cboe UK Small Companies was up 0.1% at 10,930.25.In mainland Europe, the CAC 40 in Paris was flat while the DAX 30 in Frankfurt was also little changed.In German data, the economy weakened in the second quarter of the year, as widely expected. Quarter-on-quarter, gross domestic product slipped 0.1%, figures from Destatis showed. This was in line with consensus, as cited by FXStreet, for a 0.1% decline and reverses the 0.4% growth posted for the first three months of the year."Trade conflicts, global uncertainty and the struggling automotive sector have finally brought the German economy down on its knee. In particular, increased uncertainty, rather than direct effects from the trade conflicts, have dented sentiment and hence economic activity," said ING."Who remembers that one year ago, the biggest problem for the German economy was supply-side constraints? Last summer the entire economy was close to overheating; now the lack of demand has become a pressing issue."Still to come in the economic calendar, UK consumer price inflation is at 0930 BST, while eurozone GDP is at 1000 BST.Admiral was the top performer in the FTSE 100 in early trade, up 5.1% after the insurer reported a rise in interim profit despite a headwind from the Ogden rate.Net revenue rose to GBP647.1 million from GBP598.1 million, while pretax profit increased 4% to GBP218.2 million from GBP210.7 million. The insurer declared an interim dividend of 63.0p per share, up 5% year-on-year, comprising a normal dividend of 41.8p and a special dividend of 21.2p."If it's a can't-put-down, read-in-one-go page-turner that you're after, then I'm afraid our half-year results don't fit the bill. Frankly, they are a bit dull. Turnover up mid-single digits, profit up low-single digits. Hardly 'hold the front page'," said Chief Executive David Stevens.He continued: "However, for dedicated aficionados who look behind the headlines, there's some reward for reading on. Profit growth, even if modest, is more exciting considering the GBP33 million Ogden headwind."The Ogden rate helps determine the size of personal injury damage awards.Shares in Prudential were higher, up 0.5%, ahead of the financial services firm's interim results, due at 0930 BST.Towards the bottom of the blue-chip index were miners, with Glencore down 1.3%, Anglo American down 1.2% and Antofagasta 1.2%.China's economy showed further signs of strain in July with output at its factories falling to its lowest level in 17 years, official data showed, while investment and retail sales also slowed.Industrial output increased 4.8% on-year in July, down from 6.3% in June and marking the weakest pace since 2002.Retail sales - which have long been a bright spot for the economy - slowed to a 7.6% rise last month, sharply down from 9.8% in June. Fixed-asset investment was up 5.7% in January-July, slowing from 5.8% in January-June. Spending on highways, high-speed trains and airports rose 3.8%, after years of near 20% increases.In Asia overnight, the Japanese Nikkei 225 index closed up 1.0%. In China, the Shanghai Composite is ended 0.4%, while the Hang Seng index in Hong Kong is down 0.3%.Back in London, Balfour Beatty rose 11% to top the FTSE 250 as the construction firm bumped up its interim dividend by almost a third.Revenue for the first half rose to GBP3.40 billion from GBP3.22 billion, leading pretax profit to increase to GBP63 million from GBP50 million. The company's order book increased 5% to GBP13.2 billion, with Balfour Beatty saying its focus on "disciplined bidding" building a "higher quality" order book."This is another strong set of results - increasing profits backed by a strong cash performance, plus carefully managed growth in our order book," said Chief Executive Leo Quinn.He continued: "Combined with the strength of our balance sheet and cash flows, this positions Balfour Beatty to create and return future value to shareholders."The FTSE 250 constituent boosted its interim dividend by 31% to 2.1p. Sports Direct International was down 4.0% after saying Grant Thornton has decided not to seek reappointment as the retailer's auditor.Grant Thornton will cease to be Sports Direct's auditor from September 11, the date of the company's annual general meeting. Sports Direct said Grant Thornton made the decision "following a review of its client portfolio".

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5 Jul 2019 10:55

WINNERS & LOSERS SUMMARY: SIG Victim Of Weak UK Construction Market

(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Friday.----------FTSE 100 - LOSERS----------Anglo down 2.6%, in

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1 Jul 2019 09:21

Long-Serving Antofagasta Executive Menendez Dies Following Illness

(Alliance News) - Chilean miner Antofagasta PLC on Monday reported the death of Non-Executive Director Gonzalo Menendez after "a period" of illness.Menendez had been a on the and

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11 Jun 2019 17:01

LONDON MARKET CLOSE: FTSE Continues Racking Up Gains As Miners Rally

(Alliance News) - Miners and a well-received set of annual results from hazard detection firm Halma helped the FTSE 100 continue its recent winning streak on Tuesday, though the blue-chip index by

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11 Jun 2019 12:04

LONDON MARKET MIDDAY: Miners Lift FTSE While UK Data Supports Sterling

(Alliance News) - London stocks were enjoying another session in the green on Tuesday as the anticipation of lower interest rates in the US fuelled buying. The FTSE 100 index climbed amid gains by

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11 Jun 2019 10:51

WINNERS & LOSERS SUMMARY: Ted Baker Sinks After Profit Warning

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Tuesday.----------FTSE 100 - up 2.5%, BHP Group, up up a

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11 Jun 2019 08:50

LONDON MARKET OPEN: Ted Baker Continues To Wobble After Founder's Exit

LONDON (Alliance News) - Stock prices in London opened higher on Tuesday as US-China trade war concerns eased and chances of a US rate cut rose, while mid-cap retailer Ted Baker a

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10 Jun 2019 17:12

LONDON MARKET CLOSE: FTSE Climbs As Pound Slides On Weak UK GDP Data

LONDON (Alliance News) - London stocks started the week on firm footing amid a lessening of US-Mexico trade fears, with the FTSE 100 further boosted on Monday by a poor session for the pound on UK

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10 Jun 2019 12:08

LONDON MARKET MIDDAY: US-Mexico Deal Lifts Mood; Pound Dips On UK Data

LONDON (Alliance News) - As fears over another US trade war front receded with a deal agreed between the world's largest economy and Mexico, risk appetite boosted London stocks on Monday.In to

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10 Jun 2019 08:50

LONDON MARKET OPEN: US-Mexico Stand-Down, China Data Lift Share Prices

LONDON (Alliance News) - Stock prices in London opened higher on Monday after US President Donald Trump suspended plans to impose tariffs on Mexico, while miners benefited from positive Chinese up

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31 May 2019 17:10

LONDON MARKET CLOSE: Trump's Mexican Standoff Sees Stocks End Lower

LONDON (Alliance News) - Stocks across the globe were engulfed in a sea of red on Friday, as the US added another front to its trade war, as President Donald Trump took aim at Mexico. Amid the to

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31 May 2019 12:05

LONDON MARKET MIDDAY: Stocks Down As Trump Directs Ire At Mexico

LONDON (Alliance News) - Stock prices in London were sharply lower at midday on Friday, as US President Donald Trump's vowed to impose tariffs on Mexico and weak factory data from China dealt

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31 May 2019 10:46

WINNERS & LOSERS SUMMARY: Whitbread Up On GBP2 Billion Capital Return

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Friday.----------FTSE 100 - up 2.1%. Goldman Sachs upgraded the support a

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31 May 2019 08:58

LONDON MARKET OPEN: Miners And Housebuilders Weigh On FTSE 100

LONDON (Alliance News) - Stocks in London were broadly lower, as the FTSE 100 was weighed down by miners reacting to disappointing Chinese economic data and heightened trade tensions, with the US

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28 May 2019 16:57

LONDON MARKET CLOSE: FTSE Slips Back From Earlier Gains To End Lower

LONDON (Alliance News) - The FTSE 100 got off to a sluggish start following the long weekend, with gains for NMC Health and mining stocks unable to stop London's blue-chip in

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28 May 2019 10:40

WINNERS & LOSERS SUMMARY: NMC Health Rises After Upgrading Guidance

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Tuesday.----------FTSE 100 - WINNERS----------NMC up

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