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(Alliance News) - Stocks in London ended higher on Monday, with the FTSE 100 managing to end in the green despite mixed signals over US-China trade talks.
On Saturday, China said Vice Premier Liu He had spoken to US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, and had "constructive discussion on each side's core concerns regarding the phase-one agreement".
It added that the two sides will "continue to maintain close communication".
The FTSE 100 index closed up 4.76 points, or 0.1%, at 7,307.70. The large cap index fell to an intraday low of 7,293.40 in late afternoon trade.
The FTSE 250 ended up 36.10 points, or 0.2%, at 20,440.50, and the AIM All-Share closed up 1.80 points, or 0.2% at 894.10.
The Cboe UK 100 index finished up 0.1% at 12,379.19. The Cboe UK 250 closed up 0.4% at 18,381.04 and the Cboe UK Small Companies ended up 0.1% at 11,287.17.
In Paris the CAC 40 index ended down 0.2%, while the DAX 30 in Frankfurt ended down 0.3%.
Stocks in New York were lower at the London equities close, retreating from the fresh record high reached on Friday, on concerns that China may not be prepared to strike a trade deal with the US.
The DJIA was down 0.1%, the S&P 500 index down 0.2% and the Nasdaq Composite down 0.3%.
A report from CNBC on Monday, which cited government sources, said the pessimistic outlook was due to US President Donald Trump's reluctance to roll back tariffs. China has been pushing for the removal of tariffs as the two sides work on a phase one trade deal.
"Of course, the US can always come out and refute these comments, however the comments allegedly have been made and at least for now there is temporarily some doubt to Phase One," said City Index's Joe Perry.
In the FTSE 100, Aviva ended the worst performer, down 4.6% after the insurer said it would retain its operations in Singapore and China, following speculation of a sale of the Singapore business.
Earlier on Monday, Bloomberg reported that Japan's MS&AD Insurance Group Holdings and Canada's Manulife Financial Corp were vying to buy Aviva's assets in Singapore and Vietnam, with the sale process entering its final stage.
However, the London-based company said "best value for shareholders will be achieved by retaining the business".
In the FTSE 250, PureTech Health ended the standout performer, up 14% after the healthcare firm said its affiliate Karuna Therapeutics reported positive results from the second phase of clinical trial of KarXT for the treatment of acute psychosis in patients with schizophrenia.
PureTech Health closed down 9.5% on Friday after its independent affiliate resTORbio announced disappointing data from a study evaluating the safety and efficacy of a treatment for clinically symptomatic respiratory illness.
Diploma closed up 4.3% after the technical products supplier upped its final payout for financial 2019 after reporting a "strong double-digit growth in revenues and earnings".
The company, which supplies seals, filters, specialised wiring and fastners, said its remains confident of making further progress in the current financial 2020 as moderately lower underlying growth will be offset by a strong contribution from acquisitions.
The London-headquartered company posted a 15% rise in pretax profit for the year ended September 30 to GBP83.5 million from GBP72.7 million a year ago. Revenue increased 12% year-on-year to GBP544.7 million from GBP485.1 million, comprising 5% underlying revenue growth, a 5% contribution from acquisitions and a 2% currency benefit.
Diploma recommended a 15% increase in its final dividend to 20.5 pence per share, with the total annual payout up 14% to 29.0p from 25.5p last year.
The pound was quoted at USD1.2969 at the London equities close, up from USD1.2901 at the close Friday, as opinion polls suggested that the ruling Conservative Party have a clear lead over the opposition Labour Party ahead of next month's UK general election.
UK Prime Minister Boris Johnson has pledged to postpone further UK corporation tax cuts in a bid to divert GBP6 billion to the "priorities of the British people".
Johnson said such a change is the "fiscally responsible thing to do at the present time" and named the NHS as among the services expected to receive money as a result.
The PM's announcement came at the annual CBI conference during a speech in which he also outlined a desire to push on with "uniting and levelling up" the country.
"Sterling looks to be pushing back to USD1.30 as the day wears on, as polling continues to support the idea that Boris Johnson will emerge as the winner in the election. His speech to the CBI confirms the focus on reducing austerity in order to appeal to Labour voters, with a decision to leave corporation tax unchanged likely to help protect the Conservatives from opposition attacks on their pro-business stance," IG Group's Chris Beauchamp said.
The euro stood at USD1.1068 at the European equities close, firm against USD1.1050 late Friday.
Against the yen, the dollar was trading at JPY108.55, lower than JPY108.70 late Friday.
Brent oil was quoted at USD62.20 a barrel at the London equities close, lower than USD62.80 at the close Friday.
Gold was quoted at USD1,469.08 an ounce at the London equities close, firm against USD1,466.80 late Friday.
The economic events calendar on Tuesday has eurozone current account figures at 0900 GMT .
The UK corporate calendar on Tuesday has annual results from budget airline easyJet and from pub operator Ei Group. There are also interim results from home emergency cover provider Homeserve, asset manager Intermediate Capital Group and safety and environmental technology company Halma.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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