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(Alliance News) - Some more encouraging signals from US-China talks helped to buoy stocks in London on Monday, with miners, Prudential and Burberry - all China-exposed - among the gainers in the FTSE 100.
The large-cap index was 81.41 points higher, or 1.1%, at 7,383.83 Monday midday. The FTSE 250 was up 81.31 points, or 0.4%, at 20,240.08, and the AIM All-Share was down 0.1% at 889.78.
The Cboe UK 100 index was up 1.3% at 12,517.23. The Cboe UK 250 was up 0.4% at 18,166.26 and the Cboe UK Small Companies was 0.1% higher at 11,258.44.
In European equities, the CAC 40 index in Paris was up 1.1% and the DAX 30 in Frankfurt up 1.2% in early afternoon trade.
"European stocks are starting off the week in positive fashion, with stocks following their Asian counterparts higher amid optimism over an upside surprise to Friday's jobs report and US-China talks," said Joshua Mahony, senior market analyst at IG.
Senior Chinese and US officials again sent positive signals on Friday about their efforts to formalize the partial trade bargain announced last month, with President Donald Trump saying he may meet with Chinese counterpart Xi Jinping in the US state of Iowa.
Chinese Vice Premier Liu He on Friday spoke by telephone with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, a call both sides described as "constructive".
However, details remain scarce and the positive statements were almost identical to those made last week, even though Trump announced the partial deal on October 11.
"Mining firms are on the front foot today, as markets continue to prepare themselves for a long overdue trade deal between the US and China," said IG's Mahony. "Conflicting reports of progress throughout recent weeks do little to provide too much stability for markets; yet there is no doubt that we feel closer than ever to seeing some form of partial deal come to fruition."
Glencore was 4.1% higher on the back of the US-China news, while Rio Tinto was up 2.8% and BHP Group 2.6% higher.
London-listed firms with a significant presence in Asia also traded higher, with life insurer Prudential up 2.9% and luxury retailer Burberry up 1.9%.
Stocks in the US are pointed to a higher open on the trade talks progress, with the Dow 30 and S&P 500 called up 0.5% and the Nasdaq Composite 0.6% higher.
To come in the economic calendar are US factory orders at 1500 GMT. In addition, the new European Central Bank president, Christine Lagarde, will be speaking in Berlin at 1930 GMT.
Already released, data showed the UK construction sector's decline eased somewhat in October, though conditions remain challenging.
At 44.2 in October, the latest latest IHS Markit/Chartered Institute of Procurement & Supply purchasing managers' index was below the no-change mark of 50 but improved slightly from the 43.4 points registered in September.
New orders dropped for the seventh month in a row during October, but the rate of decline was "the least marked" since July. Softer demand conditions and a lack of new work resulted in another fall in staffing levels.
There also was uninspiring eurozone PMI data on Monday.
The eurozone manufacturing PMI came in at a reading of 45.9, compared to September's 45.7. The October figure is the second-worst in seven years. There was a "sharp" fall in new orders, IHS Markit said, though slightly better than September. Manufacturing output in the eurozone showed "sustained" weakness, and job losses were at their worst since early 2013.
Germany remained the weakest eurozone member. The October manufacturing PMI improved to just 42.1, after 41.7 in September, which had been the worst reading in just over a decade.
The pound was quoted at USD1.2916 at midday, soft compared to USD1.2941 late Friday. The euro, meanwhile, was flat at USD1.1162 versus USD1.1165.
Turning back to London stocks, Hiscox was 2.6% lower after reporting an "active" third quarter for claims.
For the nine months ended September, gross written premiums grew 5.6% to USD3.21 billion from USD3.04 billion a year prior. On a constant currency basis, gross written premiums grew 7.3% on the year before.
"The third quarter has been an active period for claims, with the market experiencing significant catastrophe losses from storms in the US, the Caribbean and Japan," Chief Executive Officer Bronke Masojada said.
Hiscox has taken a USD165 million claims reserve after assessing the insured market loss for Hurricane Dorian in August, Typhoon Faxai in late August and early September, and Typhoon Hagibis in October. Dorian struck Bermuda, Faxai affected Japan and Hagibis touched a number of countries including Japan and Russia.
FTSE 250 constituent IWG rose 2.9% after agreeing to sell its Swiss subsidiaries for CHF120 million, or around GBP94 million.
The Regus brand owner will sell the assets to a venture jointly owned by the J Safra Sarasin Group, a Swiss private bank with over USD249 billion total assets under management, and investment holding firm P Peress Group.
IWG also has entered into a long-term master franchise agreement with the buyers. The agreement is similar to deals struck with TKP Corp, which saw IWG sell its Japanese and Taiwanese operations.
GVC slumped 10% after reporting the departure of Chair Lee Feldman, who will leave in February next year.
His replacement will be John Michael Barry Gibson - also known as JM Barry Gibson - who became chair of FTSE 250-listed emergency home assistance firm Homeserve in April 2010, having joined the board in April 2004.
GVC noted Gibson's "extensive experience" within the gambling sector, including as a non-executive director at William Hill PLC and senior independent director at bwin.party digital entertainment PLC.
HomeServe shares were down 2.6% at midday.
By Lucy Heming; lucyheming@alliancenews.com
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