HSTG.L Share News (HSTG)

LONDON (Alliance News) - Stocks in London on Tuesday at midday were staging a minor rebound following Monday's losses, though these gains were limited as Glencore took a hit after receiving a subpoena from the US.Meanwhile, the pound was higher after data showed the UK construction sector expanded by more than expected in June.The FTSE 100 index was up 0.6%, or 41.56 points, at 7,589.41 Tuesday midday - having closed down 1.2% on Monday. The mid-cap FTSE 250 index was up 0.5%, or 95.92 points, at 20,701.78. The AIM All-Share index was up 0.3% at 1,079.92.The Cboe UK 100 was up 0.4% at 12,860.56, while the Cboe UK 250 was also up 0.4% at 18,927.35, and the Cboe UK Small Companies down 0.3% at 12,601.68.In mainland Europe, the CAC 40 in Paris was up 1.0% while the DAX 30 in Frankfurt was up 1.3% at midday."European markets are in rebound mode this morning, as an apparent resolution to the German political impasse has helped dispel much of the trade war anxiety that was evident throughout Asia overnight," said IG market analyst Joshua Mahony.Germany's centre-left SPD party is to decide Tuesday whether to go along with a migration policy plan Chancellor Angela Merkel agreed to in order to avoid her government's collapse.The plan - agreed after hours of emergency talks between Merkel's CDU and Interior Minister Horst Seehofer's Bavarian CSU - foresees transit centres at the German-Austrian border where migrants will be held until they can be deported to the EU country they first registered in.Seehofer had threatened to resign if Merkel did not agree to turn away some groups of migrants at the border, leading to speculation about a split of the decades-old alliance between their parties, and by extension the break-up of the three-way coalition with the SPD.The SPD has previously expressed opposition to closed migrant centres at the border."Unfortunately, while the likes of the DAX, Ibex and CAC are leading the way, the FTSE 100 is struggling to make much headway, with gains in the top UK index stemmed by a 11% decline in Glencore. With the decline in Glencore accounting for a 14-point reduction to the FTSE 100, this one stock is responsible for almost halving the morning gains in the index," Mahony added.The commodity trader said subsidiary Glencore Ltd received a subpoena from the US Department of Justice to produce documents in compliance with the Foreign Corrupt Practices Act and US money laundering statutes.The documents relate to Glencore's businesses in Nigeria, the Democratic Republic of Congo and Venezuela since 2007. Glencore said it is reviewing the subpoena.The blue-chip miner was down 9.1% at midday, having been as much as 12% lower earlier in the session.Elsewhere in London, FTSE 250 constituent Paragon Banking was 9.5% higher after it said it has agreed to buy the business of Titlestone Property Finance for GBP48 million, and a portfolio of development finance loans for GBP226 million from special purpose vehicles.Both are owned by funds ultimately controlled by Oaktree Capital Management.The acquisition is expected to positively impact the banking group's cost to income ratio and boost its post-tax profit by a "high single digit percentage".Insurer Hastings was down 5.2% after JPMorgan cut its rating on the stock to Neutral from Overweight.Ferrexpo was down 2.5% after the miner said it saw lower pellet production in the first half of 2018, reflecting a 65-day pellet line refurbishment.Total pellet production for the six months to the end of June was 5.1 million tonnes, down 1.2% from 5.2 million tonnes last year.On London's junior AIM market, online fashion retailer ASOS was up 1.5% after it said it has appointed former ITV Chief Executive Adam Crozier as its new non-executive chair.In UK data on Monday, IHS Markit and Chartered Institute of Procurement & Supply showed construction output grew at the fastest pace in seven months in June.The construction Purchasing Managers' Index rose to 53.1 in June from 52.5 in May. The latest reading pointed to the sharpest rise in construction output since November 2017, with consensus forecasts having seen the figure unchanged from May.The survey showed that residential work remained the best performing area of activity. Commercial building also contributed to the stronger overall rise in construction output. Meanwhile, civil engineering activity rose only slightly in June.The pound trended higher following the release, quoted at USD1.3189 at midday from USD1.3124 late Monday.Stocks in the US are set to open higher in a half session on Tuesday. The Dow Jones is seen opening up 0.5%, the S&P rising 0.3% and the Nasdaq gaining 0.4%. Markets will close early for the Independence Day public holiday and will remain closed until Thursday. The World Trade Organization will have to change or the US will take action, President Donald Trump said Monday, in his latest salvo against the global body.During the weekend, a report by media outlet Axios stated the government was planning means to leave the WTO, an organization that meant to stand as a bulwark against protectionism and illegal trading practices."The WTO has treated the US very badly. I hope they change their ways," Trump said at the White House, where he was hosting the Dutch prime minister. "We are not planning anything now, but, if they don't treat us properly, we will be doing something."Trump's latest tirade on trade comes just days before USD34 billion in tariffs is to be imposed on Chinese goods, with an USD16 billion to come into effect at a later date. China's reciprocal USD34 billion worth of tariffs on US goods are also set to take effect on Friday. Before this, US Secretary of State Mike Pompeo will head to North Korea on Thursday for talks with that country's leader, Kim Jong Un, according to White House spokeswoman Sarah Sanders on Monday.The announcement comes amid recent reports indicating North Korea has increased its production of fuel for nuclear weapons at multiple secret sites in recent months.