Hochschild Share News (HOC)

(Alliance News) - Hopes of stimulus for the slowing economies of Germany and China led to upbeat trading at the start of the week, with optimism over further US-Sino trade talks also helping to lift stocks. The FTSE 100 was up 66.24 points, or 0.9%, at 7,183.39. The FTSE 250 was up 145.50 points, or 0.8%, at 18,967.35. The AIM All-Share was up 0.4% at 862.97.The Cboe UK 100 index was up 1.0% at 12,176.96. The Cboe UK 250 was up 0.9% at 16,871.28. The Cboe UK Small Companies was 0.3% higher at 10,873.78.In mainland Europe, the CAC 40 in Paris and the DAX 30 in Frankfurt were both 0.9% higher in afternoon trade."Last week fears of a global recession amid the ongoing US-Sino trade war dragged on sentiment. As the new week kicks off, stocks are in demand amid increased optimism over US and China reaching a trade deal and as investors anticipate stimulus measures to sure up slowing economies," said Fiona Cincotta at City Index."Germany has said that it will increase spending should the German economy fall into recession. Given that Germany contracted in the second quarter and data points to further softening in the third quarter a recession is looking increasingly likely. China also joined the stimulus chorus, unveiling measures to reduce borrowing costs for companies to sure up its slowing economy," she said.In addition: "Adding to the optimistic atmosphere, President Trump also expressed optimism over reaching an agreement with China. This would address what is considered the root cause of the global slowdown."Donald Trump's chief economic advisor said Sunday Washington and Beijing are working actively to revive trade negotiations.If teleconferences between both sides' deputies pan out in the next 10 days "and we can have a substantive renewal of negotiations," Larry Kudlow said on "Fox News Sunday," "then we are planning to have China come to the USA and meet with our principals to continue the negotiations."That left it uncertain, however, whether a Chinese delegation would be coming to Washington next month, as a White House spokesperson predicted after US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin left a round of trade talks in Shanghai in July.But Kudlow emphasized that phone conversations held last week to follow up on the Shanghai talks - involving Lighthizer, Mnuchin and two senior Chinese negotiators, Vice Premier Liu He and Commerce Secretary Zhong Shan - were "a lot more positive than has been reported in the media."This good mood is expected to flow through to the US session on Monday, with the Dow Jones and S&P 500 both called up 0.9% and the Nasdaq pointed 1.0% higher.In European data, inflation in the eurozone slowed more than expected in July, slipping further away from the European Central Bank's target of 2%.Inflation in the eurozone came in at 1.0% in July from 1.3% in June, which had been revised up from the initial 1.1% rate reported. July's reading was below the flash reading of 1.1% as well as consensus, as cited by FXStreet, of 1.1%.The euro was slightly firmer at midday, quoted at USD1.1101 versus USD1.1095 late Friday. The pound, meanwhile, softened to USD1.2123 from USD1.2147 as fears heightened over the damage a potential no-deal Brexit could cause.UK Prime Minister Boris Johnson has faced calls to step up efforts to secure a Brexit agreement after the risks posed by a no-deal outcome were outlined in documents on Operation Yellowhammer - the Whitehall codename for no-deal preparations - obtained by the Sunday Times.They warned that Britain will be hit with a three-month "meltdown" at its ports, a hard Irish border and shortages of food and medicine if the UK leaves without an agreement.More than 100 MPs have signed a letter demanding Johnson recalls Parliament, and Shadow chancellor John McDonnell said he too backed the move. No-deal planning supremo Michael Gove played down Operation Yellowhammer, and Number 10 insiders sought to blame disgruntled ex-ministers for the leak.In a quiet day for UK company news, shares in J Sainsbury were up 3.7% after Reuters reported Chief Executive Mike Coupe still has the support of the grocer's board.The news came following reports from the Daily Telegraph that the supermarket chain was preparing a succession plans and potential replacements for Coupe. In a statement given to Reuters, Sainsbury's said: "Every responsible business has potential succession plans for its CEO. This is nothing new."We are not talking to internal candidates about succession planning for Mike and have been clear he has the full support of shareholders and the board."Mexican gold miner Fresnillo was the worst performer in the FTSE 100 at midday, down 1.4% as the price of the safe haven asset declined amid Monday's risk-on trade. Gold was quoted at USD1,499.57 at midday, down from USD1,509.11 late Friday.Gold miners were also the worst performers in the FTSE 250, with Hochschild Mining down 5.0% and Centamin down 3.3%. Elsewhere in the FTSE 250, CYBG was up 2.9% after UBS raised the lender to Buy from Neutral.Mitie Group was up 1.9% after the outsourcer agreed to sell its catering & hospitality business to CH&CO for up to GBP85 million in cash. The decision to sell Mitie Catering follows a strategic review of Mitie's business, it said, focusing in particular on how to ensure that the company's clients benefit from the "very best" in catering choice and competitive pricing. London Midday is available to subscribers as an email newsletter. Contact info@alliancenews.com