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(Alliance News) - Stock prices in London were higher midday Friday following upbeat Chinese manufacturing data, but gains were held back by nerves ahead of key US data in the early afternoon.
The FTSE 100 index was up 0.4% at 7,276.55 midday Friday. The midcap FTSE 250 index was up 0.2% at 20,064.86. The AIM All-Share index was up 0.1% at 890.57.
The CBOE UK 100 index was up 0.1% at 12,336.64. The CBOE 250 was marginally higher at 18,016.86, and the CBOE Small Companies was marginally higher at 11,195.22.
Sterling was quoted at USD1.2960 midday Friday, higher than USD1.2927 at the London equities close on Thursday.
"European markets are on the rise this morning, as improved Chinese data and optimism over a potential breakthrough in US-China talks helped boost stocks," IG Senior Market Analyst Joshua Mahony said.
In mainland Europe, the CAC 40 in Paris was up 0.2% and the DAX 30 in Frankfurt 0.3% higher. The euro was quoted at USD1.1156 at midday Friday, higher from USD1.1151 late Thursday.
"Fears over a continued slowdown in manufacturing have been allayed somewhat with the release of a surprisingly positive Caixin manufacturing PMI survey," Mahony added. "With the survey focusing on SMEs [small and medium-sized enterprises), there is a strong chance that these less internationalized firms will lead the recovery ahead of their larger competitors."
The Caixin China General Manufacturing purchasing managers' index rose to 51.7 in October from 51.4 in September, representing the third consecutive month in which conditions have improved.
According to FXStreet consensus data, economists had expected the print to fall back to the neutral 50.0 points mark in October. Any figure above 50 represents expansion as opposed to contraction within the sector.
"US-China trade remains a key concern for traders, with top negotiators from both sides due to take a phone call that could enhance the chance of a phase one trade deal," Mahony continued. "Tensions remain high between the two-sides, yet the market perspective is that we simply need some form of progress to maintain the bullish bias for stocks."
Sentiment remained muted, however, ahead of a string of important data print from the US in the early afternoon.
Still to come in the economic calendar on Friday, US nonfarm payrolls data are released at 1230 GMT. This is followed by a brace of US manufacturing PMI prints at 1345 GMT and 1400 GMT.
According to economists consensus data, net job adds from the non-farm payrolls data are expected to slow to 89,000 in October from 136,000 in September.
Meanwhile, manufacturing PMI forecasts are for the Markit-compiled index to hold firm on the month prior at 51.5 in October and the ISM-compiled index to improve to 48.9 points in October from 47.8 points in September.
On Wall Street, stocks are pointed towards a higher session Friday. Dow Jones and S&P 500 are both seen 0.1% higher and the Nasdaq Composite 0.2% higher.
Amongst the stocks moving in London, blue chip vehicle retailer Auto Trader was 2.3%% lower and mid-cap Inchcape down 3.6% after shares in smaller peer Lookers fell sharply following a profit warning.
Lookers was 12% lower after it expects underlying pretax profit to be around GBP20 million for the year ended September. This is down dramatically from the GBP67.3 million profit reported the year before.
The news resulted in Chief Executive Officer Andy Bruce and Chief Operating Officer Nigel McMinn leaving the firm immediately.
Lookers explained the profit warning was driven by "ongoing weakness in consumer confidence" amid "political and economic uncertainty" in the UK as well as used car margins pressure.
The firm added that although it had expected these condition to continue during the second half of the year, trading "over recent weeks since mid-September, has been much more challenging than expected."
In the FTSE 250, interdealer broker TP ICAP was 6.3% higher - the best performer in the mid-caps - after reporting favourable market conditions helped third quarter revenue surge 17%.
With volatile market conditions, revenue for the three months ended September surged 17% on the year prior to GBP478 million. This takes revenue for 2019 to date to GBP1.40 billion, up 6% on the year before.
Despite the strong performance, however, TP ICAP retained its low single-digit revenue growth forecast for 2019 as a whole.
Convatec was 1.7% higher to 200.50 pence after Barclays raised its price target for the medical devices maker to 185 pence from 130p prior.
The upgrade follows shares in Convatec jumping 11% on Wednesday after hailing a "solid" third quarter and holding firm to full year guidance.
For the three months ended September, revenue grew 2.4% on the year prior to USD462.9 million with organic growth up 4.6%.
Shares in housebuilder Crest Nicholson continued to slide, down 3.1%, after shedding 5.1% on Thursday after warning full year profit was expected to be lower than the year prior amid "volatile" market conditions in the UK.
Crest Nicholson now expects pretax profit to be between GBP110 million and GBP120 million, down from GBP176.4 million the year prior.
Elsewhere in London, shares in AIM-listed Argos Resources was 23% higher after the government of the Falkland Islands extended the PL001 Licence held by the exploration firm to May 2021.
Spot gold was quoted at USD1,510.16 an ounce, flat on USD1,510.25 at the London equities market close on Thursday.
Brent oil was quoted at USD59.80 a barrel midday Thursday, down on USD60.22 at the London close on Thursday.
In UK political news, US President Donald Trump intervened in the forthcoming UK general election by urging UK Prime Minister Boris Johnson to tie up his ruling Conservative party with the Brexit Party of Nigel Farage to become an "unstoppable force".
Meanwhile, the Republican president - in comments on the LBC radio show of ardent Brexiteer Farage - argued the Labour Party opposition leader Jeremy Corbyn would take the UK to "bad places."
By Ahren Lester; ahrenlester@alliancenews.com
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