LONDON (Alliance News) - Stocks in London ended the week in the green on renewed hopes of a trade deal as US President Donald Trump is to meet with Chinese Vice Premier Liu He later this afternoon."Not quite as bubbly as at lunchtime, the FTSE fell back under 7,200 as the week started to wrap up, its gains trimmed to 0.3% as the pound recovered a good chunk of its midday losses," said Spreadex analyst Connor Campbell.The FTSE 100 index closed up 11.21 points, or 0.2% at 7,178.60, ending the week up 0.7%.The FTSE 250 ended up 32.71 points or 0.2% at 19,269.59, ending the week up 1.5%. The AIM All-Share closed up 1.24 points, or 0.1% at 910.09, ending the week up 0.3%.The Cboe UK 100 ended up 0.3% at 12,197.69, the Cboe UK 250 closed up 0.3% at 17,186.9, and the Cboe Small Companies ended down 0.5% at 11,126.24.The pound was firm, quoted at USD1.3059 at the London equities close, compared to USD1.3054 at the close Thursday.Fresh Brexit talks have been scheduled for early next week as UK Prime Minister Theresa May heads towards another Commons showdown on her EU withdrawal stance.The move comes amid reports May is facing a major challenge from Tory MPs opposed to a no-deal exit from the EU. As the clock ticks down to the UK's scheduled exit from the EU on March 29, the prime minister faces a rebellion by up to 100 Tory MPs who want her to delay Brexit if she cannot cut a deal.Meanwhile, MP John McDonnell has signalled that Labour is moving closer to backing a second public vote on Brexit. The shadow chancellor said Labour had kept the option on the table and "we're moving towards that".In UK economic news, retail sales volumes remained flat in the year to February, confirming a "subdued start to 2019", the Confederation of British Industry said.This was the second successive month of flat sales, after January sales also proved unchanged. However, it represented a pick-up on December when retail sales experienced a 13% fall. Within the retail sector, grocers provided the biggest positive contribution to volumes growth, with support from clothing stores, non-store retailers and recreational goods stores. By contrast sales volumes fell among footwear & leather retailers, hardware & DIY goods shops, and furniture & carpets.In UK company news, miners were driving the FTSE 100 index higher, with Evraz closing up 3.5%, Anglo American ending up by 3.3%, Glencore finishing up 3.1%, BHP Group ending 2.2% higher and Rio Tinto closing up 1.7%.The mining sector bounded higher as investors cheered news that US President Donald Trump is to meet with Chinese Vice Premier Liu He at 1930 GMT on Friday."After the two powers have been locked in a trade war for months, we are finally seeing signs that real progress is being made in negotiations," said Citi Index Senior Market Analyst Fiona Cincotta. In the red, Barclays finished down 2.3% after Gerry Grimstone, a non-executive director of company and the chair of its retail arm, Barclays Bank, decided to step down from his role. Nigel Higgins, who is joining the lender on Friday next week to be chair-elect of the company, will take over Grimstone's duties.Barclays on Thursday announced a higher dividend and pledged a greater focus on returns to shareholders, after litigation charges pulled down 2018 profit.In the mid-caps, Dairy Crest finished up 15% at 640p as it agreed a takeover by Canadian dairy firm Saputo.The company, which owns Cathedral City cheddar and Country Life butter, said Saputo will pay 620 pence in cash for each Dairy Crest share. The offer values Dairy Crest at about GBP975 million.The price is a 12% premium to Dairy Crest's closing price of 555p on Thursday, which had gave a market capitalisation of GBP863 million.The purchase will be funded by Saputo from debt, which will be provided under a credit agreement underwritten by the National Bank of Canada and Bank of Montreal. Dairy Crest's existing debt, which stood at GBP265.7 million at the end of March last year, will be refinanced using this credit agreement.Provident Financial ended 9.7% higher after securing a GBP1.3 billion all-share offer from peer sub-prime lender Non-Standard Finance, which closed up 16%. The merger will see Non-Standard Finance issue 8.88 of its own shares per Provident share, valuing Provident's shares at around 511 pence each. Provident closed at 511.40p on Thursday, so there is no premium to the takeover proposal.So far, shareholders with over 50% of Provident have indicated they will accept the deal, including Woodford, Invesco, and Marathon.Metro Bank ended 9.7% higher as it won GBP120 million funding from BCR, which was set up to implement the alternative remedies package agreed between the UK and the European Commission in connection with the taxpayer bailout of Royal Bank of Scotland. The cash will go towards helping small and medium-sized businesses, Metro Bank said.By contrast, CYBG was 45.2% lower, after failing to get a grant from the same body. Elsewhere on the market, Flybe slumped 26%. It has completed the sale of operating subsidiaries Flybe Ltd and Flybe.com to Connect Airways, a consortium including Stobart Group.Flybe Group, now a non-trading entity itself still needs shareholder approval to be sold, and the board has warned without a sale it will be wound up.Stobart Group, as part of the deal, has sold its Stobart Air and Propius businesses to Connect Airways, and this now also has completed. Stobart was up 3.4%.In Paris the CAC 40 ended 0.5% higher, while the DAX 30 in Frankfurt ended up 0.4%.The euro stood at USD1.1340 at the European equities close against USD1.1335 late Thursday.EU member states expressed "strong support" for trade negotiations with the US, but some need more time for domestic consultations before giving the go-ahead, EU Trade Commissioner Cecilia Malmstrom said.The European Commission is eager to launch negotiations with Washington on a limited free trade deal, following an agreement reached last July between US President Donald Trump and European Commission President Jean-Claude Juncker.In response, the US has accused Brussels of dragging its feet on the trade talks, while at the same time threatening to raise tariffs on EU automotive exports.Stocks in New York were higher at the London equities close. The DJIA was up 0.7%, the S&P 500 index up 0.6% and the Nasdaq Composite up 0.8%.Brent oil was quoted at USD67.10 a barrel at the London equities close, up slightly from USD66.99 at the close Thursday.Gold was soft, quoted at USD1,329.84 an ounce at the London equities close against USD1,330.61 late Thursday.The economic events calendar on Sunday has Australian retail sales at 2145 GMT followed by Japanese leading economic index on Monday at 0500 GMT. The UK corporate calendar on Monday has full year results from outsourcing company Bunzl and media company Ascential, while Associated British Foods will publish its trading statement.
10 Jun 2016 08:42
