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(Alliance News) - Stocks were higher early Wednesday on encouraging tariff moves from China towards the US, while London's airlines traded higher in the wake of the firing of bellicose US national security advisor John Bolton.
The FTSE 100 was 39.88 points higher, or 0.6%, at 7,307.83 early Wednesday. The FTSE 250 was up 77.31 points, or 0.4%, at 19,816.17, while the AIM All-Share was up 0.2% at 877.08.
The Cboe UK 100 index was up 0.6% at 12,391.42. The Cboe UK 250 was up 0.4% at 17,684.99, and the Cboe UK Small Companies was up 0.1% at 10,861.83.
In mainland Europe, the CAC 40 in Paris and the DAX 30 in Frankfurt were up 0.3% and 0.6% respectively in early trade.
Stocks were higher in early trade amid constructive US-China trade war newsflow.
China announced Wednesday it would exempt 16 categories of US products from tariffs, ahead of a fresh round of trade talks next month.
The exemptions announced Wednesday will become effective on September 17 and be valid for one year, according to the Customs Tariff Commission of the State Council, which released two lists that include seafood products and anti-cancer drugs.
The lists mark the first time Beijing has announced products to be excluded from tariffs. Wednesday's lists, however, do not include big-ticket items such as soybeans and pork.
In Asia on Wednesday, the Japanese Nikkei 225 index closed up 1.0%. In China, the Shanghai Composite ended down 0.4%, while the Hang Seng index in Hong Kong is up 1.5% in late trade.
Meanwhile, markets await the European Central Bank's Thursday meeting.
"The ECB is likely to throw the kitchen sink at the economy, with a new QE programme and a rate cut, but at the risk of sounding like a broken record, it's the fiscal bazooka that's needed now, not the worn out monetary one," said Kit Juckes at Societe Generale.
Before this, the economic calendar on Wednesday has US producer prices at 1300 BST.
In London, airlines were higher as the price of oil fell back following US President Donald Trump's firing of hawkish national security advisor John Bolton.
Bolton is a veteran and controversial figure closely linked to the invasion of Iraq and other aggressive foreign policy decisions. He had been seen as one of the main driving forces in the White House's muscular approach to Iran and Venezuela.
Brent was quoted at USD62.82 a barrel early Wednesday, down from USD63.51 late Tuesday.
"Traders took the view that an US-Iran war seems less likely now that Bolton has left the Trump administration, and that triggered a decline in the energy market," explained David Madden at CMC Markets.
British Airways-owner International Consolidated Airlines was up 2.2%, while in the FTSE 250 easyJet was up 2.3%. Elsewhere, Ryanair was up 1.6%.
In the FTSE 250, Galliford Try shares were down 1.5% after the construction firm reduced its dividend by a quarter.
Revenue for the year to June 30 fell 7.5% to GBP2.71 billion from GBP2.93 billion, with pretax profit dipping 27% to GBP104.7 million from GBP143.7 million. The company cut its full-year dividend 25% to 58.0p from 77.0p.
Galliford said its construction result for the year was hit by challenges in both legacy projects and some current one, though the business continues to see "good demand" in its Building and Infrastructure divisions, which are part of Galiford's Construction arm.
On Tuesday, Bovis Homes Group said it had resumed talks to acquire peer Galliford Try's housebuilding businesses. Back in May, Galliford rejected a GBP1.05 billion bid by Bovis for Galliford's Linden Homes and Partnerships & Regeneration businesses.
On Wednesday, Galliford Chief Executive Graham Prothero said: "The potential combination of our Linden Homes and Partnerships businesses with Bovis Homes represents a superb opportunity, enhancing the prospects for all three of our businesses to thrive as strategically focused and well-financed operations with excellent opportunities for growth. The transaction allows Construction to continue trading as a standalone well capitalised business."
Galliford reported 6,507 home completions in the year, comprising 3,229 in Liden Homes and 3,278 from Partnerships & Regeneration.
Liden Homes revenue fell 13% to GBP820.4 million, while profit from operations was also down 13% to GBP160.5 million. Partnerships & Regeneration, meanwhile, recorded a 31% rise in revenue to GBP623.2 million, while profit from operations rose 47% to GBP34.8 million.
Bovis Homes was up 1.3%.
Capital & Regional shares rose 11% on news Johannesburg-listed real estate investment trust Growthpoint Properties is in talks to buy a majority stake in Capital & Regional.
In addition, Capital & Regional reported a pretax loss of GBP55.4 million for the six months to the end of June, compared to a profit of GBP6.7 million the year before.
Net asset value as at June 30 was down 23% at 55 pence from 66p the same date the prior year, as Capital & Regional's portfolio value fell by 6.8% to GBP797.3 million from GBP855.2 million the prior year.
