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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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13 Feb 2019 17:11

LONDON MARKET CLOSE: Stocks Rise On US-China Trade Optimism

LONDON (Alliance News) - Stocks in London ended higher, with miners driving the FTSE 100 to a near four-month high, amid brighter prospects regarding US-China trade negotiations. Investor was US a

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4 Feb 2019 08:52

LONDON MARKET OPEN: Stocks Edge Higher; Ryanair Sounds Brexit Alarm

LONDON (Alliance News) - Stock prices in London opened marginally higher on Monday after quiet trading in Asia overnight, while Ryanair fell after posting a loss in the third and

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31 Jan 2019 17:13

LONDON MARKET CLOSE: Commodity Stocks Rise As Trump Turns Optimistic

LONDON (Alliance News) - Stocks in London ended mixed on Thursday with the energy and mining sector behind the FTSE 100's gains, as investors welcomed positive comments from the US over trade.

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30 Jan 2019 17:15

LONDON MARKET CLOSE: FTSE 100 Rallies As Commodity Stocks Drives Gains

LONDON (Alliance News) - Stocks in London ended higher on Wednesday with heavyweight commodity stocks and a weaker pound edging the FTSE 100 towards the 7,000 mark. The FTSE 100 index closed up or

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30 Jan 2019 10:48

WINNERS & LOSERS SUMMARY: Firm Commodity Prices Drive Miners Higher

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Wednesday.----------FTSE 100 - up 2.5%. The Mexican gold miner was spot a

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25 Jan 2019 17:18

LONDON MARKET CLOSE: Stocks Mixed As Miners Rise But Vodafone Sinks

LONDON (Alliance News) - Stocks in London finished the week mixed as commodity miners were unable to keep the FTSE 100 in the green with Vodafone dragging the index lower.The FTSE 100 closed down

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25 Jan 2019 12:13

LONDON MARKET MIDDAY: Miners On The Up, Property Stocks Recover

LONDON (Alliance News) - The FTSE 100 was higher midday Friday, helped by rising commodity stocks, while the FTSE 250 has been helped by property firms clawing back losses made earlier in the FTSE

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25 Jan 2019 08:42

LONDON MARKET OPEN: Miners Rise; Deals Lift Fuller's And Earthport

LONDON (Alliance News) - The FTSE 100 was in the green early on Friday, helped by commodities stocks, while a number of midcap firms were suffering from broker ratings cuts. Elsewhere on the Stock

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23 Jan 2019 08:52

TOP NEWS: Antofagasta Keeps Up Record Silver Output But Gold Falters

LONDON (Alliance News) - Antofagasta PLC on Wednesday said it achieved record silver production in 2018, but gold output declined despite strong growth in the final quarter.The FTSE miner a

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23 Jan 2019 08:34

LONDON MARKET OPEN: Burberry And Fresnillo Fall As FTSE Resumes Slide

LONDON (Alliance News) - Stocks in London continued where they left off on Tuesday, with the FTSE 100 lower on Wednesday amid losses for fashion house Burberry and gold miner FTSE

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23 Jan 2019 07:40

LONDON MARKET PRE-OPEN: RPC Agrees To Be Bought Out For GBP3.3 Billion

LONDON (Alliance News) - Stock prices in London on Wednesday are set to resume Tuesday's slide, with markets in the US posting steep declines overnight and trade in Asia mixed.In early company

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22 Jan 2019 16:55

LONDON MARKET CLOSE: Oil, Mining Stocks Hit By Global Growth Jitters

LONDON (Alliance News) - The FTSE 100 tumbled on Tuesday as markets in the US and Asia got a chance to react to the International Monetary Fund's downgraded global growth forecasts.Also on a a

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16 Jan 2019 17:38

Antofagasta Non-Executive Director Hayes To Stand Down At AGM

LONDON (Alliance News) - Antofagasta PLC on Wednesday said Non-Executive Director William Hayes will not stand for re-election at the company's next annual general meeting.The meeting a

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16 Jan 2019 16:12

UK Earnings, Trading Statements Calendar - Next 7 Days

Thursday 17 January IbstockTrading StatementWhitbreadQ3 ResultsGame (at

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15 Jan 2019 17:02

LONDON MARKET CLOSE: Pound Sinks As May Braces For Likely Defeat

LONDON (Alliance News) - Stocks ended in positive territory on Tuesday, with mining stocks, Sage, and BAE Systems all among the risers.The blue-chip FTSE 100 was

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