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(Alliance News) - Stock prices in London turned lower at midday on Monday after conflicting statements about plans for a US-Russia summit to discuss Ukraine, dousing an earlier wave of optimism.
The Kremlin warned there are no concrete plans for a summit between the Russian and US leaders, as diplomats scrambled to head off the threat of a Russian invasion of Ukraine.
The idea of a meeting between presidents Vladimir Putin and Joe Biden has been championed by France and cautiously welcomed by Ukraine as a way to avert a catastrophic war in Europe.
But Putin's spokesman Dmitry Peskov said: "It's premature to talk about any specific plans for organising any kind of summits" adding that no "concrete plans" had been put in place.
French President Emmanuel Macron called Putin on Sunday and afterwards his office said that both the Russian president and Biden were open to the idea. The summit would go ahead, however, only "on the condition that Russia does not invade Ukraine".
The FTSE 100 index was down 4.73 points, or 0.1%, at 7,508.89. The mid-cap FTSE 250 index was down 284.37 points, or 1.1%, at 21,078.23. The AIM All-Share index was down 12.78 points, or 1.2%, at 1,047.24.
The Cboe UK 100 index was down 0.1% at 745.94. The Cboe 250 was down 1.1% at 18,873.28 and the Cboe Small Companies down 1.0% at 15,367.99.
In mainland Europe, the CAC 40 in Paris was down 0.8%, while the DAX 40 in Frankfurt was down 0.2%.
In the FTSE 100, AstraZeneca was the best performer, up 2.6%. The drugmaker said phase three trials for Enhertu showed positive outcomes in metastatic breast cancer patients and could "redefine how the disease is classified and treated".
The Anglo-Swedish company said Destiny-Breast04 phase three trials had shown Enhertu showed a "statistically significant and clinically meaningful improvement" when compared to chemotherapy in both progress-free survival and overall survival in patients with low human epidermal growth factor receptor 2 unresectable and, or metastatic breast cancer, regardless of their hormone receptor status.
Enhertu, or generically trastuzumab deruxtecan, is a HER2-directed antibody drug conjugate under joint development by Astra and Daiichi Sankyo.
Dechra Pharmaceuticals was up 0.7% after the veterinary products firm said it delivered strong interim results amid increased consumer spending on pets during Covid-19 restrictions.
For the six months that ended December 31, Dechra posted pretax profit of GBP53.4 million, up 51% from GBP35.4 million a year before. This was on revenue of GBP322.4 million, up 7.5% from GBP299.8 million.
The Northwich, Cheshire-based firm declared an interim dividend of 12.00 pence, up 8.1% from 11.11p.
Looking ahead, Dechra said trading at the start of the second half remains strong, especially in major markets which are returning to "historic levels" of growth.
At the other end of the large-caps, Russian gold miner Polymetal International was the worst performer, down 8.2%.
In addition, Russian steelmaker Evraz was down 4.4%, giving back its earlier gains as optimism over the Ukraine crisis waned.
Elsewhere in London, Clipper Logistics was up 14% at 882.00 pence. The e-fulfilment services company agreed to be acquired by Connecticut, US-based warehousing and distribution company GXO Logistics for GBP941 million in cash and shares.
The offer values Clipper shares at 920.00p each which is an 18% premium to Friday's closing price of 777.00p.
The Leeds-based company said its board was "minded to recommend [the offer] unanimously" to Clipper shareholders should a firm offer be made on the same financial terms as the potential offer.
John Menzies was up 0.2% after the aviation services and cargo handling firm agreed to a fourth and final takeover offer from its persistent Kuwaiti suitor.
The Edinburgh-based firm had rejected three previous offers from air services peer Agility Public Warehousing, but on Monday the board said it was willing to unanimously recommend a new cash offer of 608 pence per share to Menzies shareholders.
The new offer, made via Agility subsidiary National Aviation Services, was up from 460p, 510p and 605p previously. Menzies said Agility has confirmed that the offer is final and won't be raised. It values all of Menzies at GBP558.8 million.
The dollar was lower across the board.
The pound was quoted at USD1.3620 at midday Monday, up from USD1.3584 at the London equities close Friday.
On the economic front, UK private sector activity picked up in February driven by a recovery in economic conditions after disruptions due to the Omicron variant at the turn of the year, according to IHS Markit.
The flash UK services purchasing managers' index reading was 60.8 points in February, up sharply from 54.1 in January. The score beat the market forecast, cited by FXStreet, of 55.5.
The flash UK manufacturing PMI was 57.3 points in February, unchanged from January, but slightly above market expectations of 57.2.
The flash composite PMI score increased to 60.2 points in February from 54.2 in January. The latest reading was the highest since June 2021.
"Signs of a growth rebound and ongoing inflationary pressures from the latest purchasing manager indices will act as another green light for Bank of England policymakers, who look poised to hike interest rates again in March and May," said analysts at ING.
Meanwhile, UK Prime Minister Boris Johnson said his "living with Covid" plan will bring the country "towards a return to normality" as he intends to scrap the requirement to self-isolate in England.
Johnson will meet with his Cabinet on Monday morning before updating members of Parliament in the afternoon on his blueprint for moving out of the pandemic.
The PM said the proposal would be about "finally giving people back their freedom" after "one of the most difficult periods in our country's history". Johnson's announcement will come just over 24 hours after it was confirmed the Queen had tested positive for coronavirus.
The euro was priced at USD1.1351, up from USD1.1334, supported by upbeat economic data from the continent.
Business activity in the eurozone is in line for bumper growth in February, as the region benefited from eased Covid restrictions, data from Markit showed.
The flash IHS Markit eurozone composite purchasing managers' index surged 3.5 points in February to 55.8, up from January's final reading of 52.3. IHS Markit noted this is the largest monthly gain since March of last year. A figure above 50.0 indicates growth in business activity.
The flash services PMI activity index rose to 55.8 from 51.5 in January, while the manufacturing reading inched higher to 55.6 from 55.4.
Against the yen, the dollar was trading at JPY114.85 in London, down from JPY115.11.
Brent oil was quoted at USD93.61 a barrel Monday at midday, up from USD92.85 at the close Friday. Gold stood at USD1,896.52 an ounce, firm from USD1,893.40 on Friday.
Financial markets in the US will be closed on Monday for the Presidents Day holiday.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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