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(Alliance News) - Stock prices in London opened higher on Tuesday as investors cheered progress on the trade relationship between the US and China, while Aveva rose after announcing a USD5 billion deal to acquire a US rival.
Global sentiment was lifted overnight after top Chinese and US negotiators spoke on the phone and agreed to "push forward" their phase one trade deal, despite heightened tensions between the two sides on several fronts.
In London, the blue-chip FTSE 100 index was up 40.68 points, or 0.7%, at 6,145.41. The mid-cap FTSE 250 index was up 69.66 points, or 0.4%, at 17,754.73. The AIM All-Share index was up 0.3% at 963.47.
The Cboe UK 100 index was up 0.6% at 611.69. The Cboe 250 was up 0.4% at 15,119.68. The Cboe Small Companies was down 0.1% at 9,497.65.
In mainland Europe, the CAC 40 index in Paris was up 0.9%, while the DAX 30 in Frankfurt was up 1.0%.
"Overnight, encouraging news flow surrounding US-Sino trade talks has helped to keep the mood buoyant. Chinese and US officials have seen progress on the Phase 1 trade deal...setting European bourses up for a stronger start," said City Index analyst Fiona Cincotta.
In the FTSE 100, Aveva was up 3.5% after the industrial software maker said it has agreed to acquire SoftBank-backed US software company OSIsoft, in a USD5 billion deal.
Aveva said the acquisition will be funded using a combination of a rights issue, cash on balance sheet and new debt facilities, as well as issue shares to one of the selling shareholders.
The Cambridge-based firm said San Leandro, California-based OSIsoft was key to capitalising on the trends in global manufacturing for the use of digital technology, as companies digitalise their operations during the coronavirus pandemic.
AstraZeneca was up 0.7% after the Anglo-Swedish drugmaker said the first patients have now been dosed in its phase one trial of Covid-19 treatment, AZD7442.
AZD7442 is a combination of two monoclonal antibodies and is being developed for the development and treatment of Covid-19. These antibodies are derived from convalescent patients infected with SARS-CoV-2 and were discovered by Vanderbilt University Medical Center and licensed to AstraZeneca in June.
Astra then optimised the antibodies, extending their half-life so as to "afford at least six months of protection from Covid-19".
If AZD7442 proves to be tolerated and has a "favourable safety profile" in the NCT04507256 trial then Astra will move to larger late-stage phase 2 and phase 3 trials. These later trials will evaluate AZD7442's efficacy as a possible preventative and treatment approach against the virus.
In the FTSE 250, Apax Global Alpha was up 4.7% after the investment company said its net asset value per share fell in the first half of the year as a result of Covid-19 disruption in the first quarter.
Apax Global Alpha reported a decline in NAV per share to EUR2.16 as at June 30 from EUR2.24 at the end of 2019. The NAV total return for half a year was negative 0.5%, recovering from a first quarter negative return of 12% on market weakness.
The company declared an interim dividend of 4.87p per share, up 3.8% from 4.69p per share the year before.
At the other end of the midcaps, James Fisher & Sons was the worst performer, down 6.5% after the marine services provider said its performance deteriorated in the first half of 2020 amid lower energy prices and coronavirus pandemic.
James Fisher said pretax profit dropped by 59% to GBP7.1 million in the six months to the end of June from GBP20.9 million reported a year earlier, as revenue fell by 10% to GBP258.1 million from GBP286.9 million.
The company has declared an interim dividend of 8.0 pence per share, reduced by 29% from 11.3p paid a year earlier.
The Japanese Nikkei 225 index ended up 1.4%. In China, the Shanghai Composite closed down 0.5%, while the Hang Seng index in Hong Kong is down 0.1%.
The pound was quoted at USD1.3091 Tuesday morning, up from USD1.3075 at the London equities close Monday.
The euro was priced at USD1.1800, flat from USD1.1802. Against the yen, the dollar was trading at JPY106.01, slightly higher compared to JPY105.93.
In commodities, Brent oil was quoted at USD45.30 a barrel Tuesday morning, up from USD44.88 a barrel at the London equities close Monday. Gold was trading at USD1,930.64 an ounce, lower against USD1,933.88.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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