(Alliance News) - London stocks ended in the green on Monday as traders remained upbeat on both Brexit and US-China trade relations, with the FTSE 100 managing to overcome losses for Prudential, Smith & Nephew and Just Eat.
The FTSE 100 index closed 13.07 points, or 0.2%, at 7,163.64. The FTSE 250 ended up 80.26 points, or 0.4%, at 20,308.79, and the AIM All-Share closed up 4.46 points, or 0.5%, at 885.19.
The Cboe UK 100 ended up 0.1% at 12,156.13 and the Cboe UK 250 closed up 0.5% at 18,259.15, while the Cboe Small Companies ended 0.2% lower at 11,113.47.
Markets were "broadly positive" on Monday as investors remained optimistic on the US-China trade situation and Brexit, said Connor Campbell at Spreadex.
"The belief that the EU would agree to a Brexit delay, alongside renewed speculation that Boris Johnson may actually be able to get his deal passed this week, meant the pound's early stoicism was rewarded with fresh 5-month highs by the afternoon. And this despite Speaker John Bercow rejecting the prime minister's calls for another meaningful vote on said deal," said Campbell.
He added: "While these gains did prevent the FTSE from really opening up this Monday, it did avoid its usual anti-sterling dip into the red thanks to some trade-positive comments from Donald Trump's economic advisor Larry Kudlow, who claimed that 'things look pretty good' between the US and China."
The pound was quoted at USD1.2982 at the London equities close Monday, higher compared to USD1.2885 at the close on Friday.
On Monday afternoon, House of Commons Speaker John Bercow rejected a government bid to hold a meaningful vote on UK Prime Minister Boris Johnson's Brexit deal, saying it would be "repetitive and disorderly" to do so.
The prime minister had hoped to get the approval of MPs for his plans on Monday after he abandoned the vote on Saturday when the Commons backed a move forcing him to ask Brussels for a further Brexit delay.
But Bercow said that the circumstances and the substance of the motion were the same as Saturday's and that it should not be debated on Monday because of the so-called "same question convention" preventing the same matter being discussed twice.
In European equities on Monday, the CAC 40 in Paris ended up 0.2%, while the DAX 30 in Frankfurt ended up 0.9%.
The euro stood at USD1.1142 at the European equities close Monday, flat against USD1.1140 at the same time on Friday.
Against the yen, the dollar was trading at JPY108.55, firm compared to JPY108.42 late Friday.
Stocks in New York were higher at the London equities close, with the Dow Jones up 0.1%, the S&P 500 index up 0.6%, and the Nasdaq Composite up 0.8%.Â
In London, UK-focused banks traded higher on Brexit hopes. Royal Bank of Scotland closed up 2.1%, having gained 17% this month alone, while Lloyds Banking shares rose 2.2%.
Prudential shares ended 8.9% lower as spin-off M&G began trading in London.
The life insurance company announced plans to demerge M&G, its UK & Europe business, back in March 2018, resulting in two separately listed companies. Prudential itself will now operate in Asia, Africa and the US.
M&G shares, meanwhile, closed 1.4% lower at 217.00 pence.
Another blue-chip loser on Monday was Smith & Nephew, which closed down 8.4% on news of its chief executive's departure.
Roland Diggelmann has been appointed the medical technology firm's new chief executive from November 1. He was most recently was CEO of Roche Diagnostics, a division of Roche Holdings, leaving Roche in 2018.
Diggelmann will succeed Nawana, who will step down from the board and his position as CEO by "mutual agreement" on October 31, "to pursue other opportunities outside of the UK".
Just Eat shares shed 5.6% as the takeaway platform reported slower growth in the third quarter.
For the three months ended September, revenue grew 25% on the year prior to GBP247.5 million with orders up 16% to 62 million during the period. Over the nine months ended September, revenue was 28% higher on the year before at GBP717.8 million.
"The revenue figures are tasty, but the slowdown in growth has caused concern among traders," said David Madden at CMC Markets.
In the FTSE 250, Capital & Counties shares closed up 8.0% after receiving takeover interest from a consortium led by Candy Ventures.
Candy Ventures is fronted by Nicholas Candy, a developer of luxury properties. Candy said there was no certainty that it would mount an acquisition bid for London- and Johannesburg-listed Capital & Counties. Candy must announce its intention to make a takeover offer by November 18.
At this stage, Capital & Counties said on Monday, it has not yet received a takeover bid from Candy. The company also said it has entered into "a short period of exclusivity" with a vehicle established by Delancey Real Estate Asset Management, in relation to the sale of Earls Court.
Micro Focus International, meanwhile, was dented by M&A news, closing down 6.3% after noting that Open Text will not be making an offer for the FTSE 250-listed software firm.
On Friday, Bloomberg cited people familiar with the matter as reporting Open Text was weighing a potential offer for Micro Focus. Shortly after, Open Text confirmed it was "not considering a potential acquisition of Micro Focus" in a statement. On Monday, Micro Focus reiterated the statement by Canadian firm Open Text without elaborating further.
Former FTSE 250 constituent Funding Circle Holding saw shares surge 17% after reporting loans under management ended the third quarter 31% higher than the year before.
For the three months ending September 30, originations were broadly flat at GBP561 million but rose 8.7% in the nine month period to GBP1.75 billion. The company said its guidance for 2019 remains unchanged, with its performance "on track to meet market expectations".
The UK corporate calendar on Tuesday has trading statements from wealth management firm St James's Place and Nurofen painkiller maker Reckitt Benckiser, a third quarter production report from miner Anglo American, half year results from Premier Inn hotel chain owner Whitbread.
Internationally, companies reporting on Tuesday include Swiss bank UBS, Head & Shoulders shampoo maker Procter & Gamble, and fast food chain McDonald's.
The economic calendar on Tuesday has UK public sector net borrowing at 0930 BST and US existing home sales at 1500 BST. Markets in Japan will be closed for a bank holiday.
In commodities, Brent oil was quoted at USD58.68 a barrel at the London equities close Monday, down from USD59.62 late Friday.
Gold was quoted at USD1,484.13 an ounce at the London equities close Monday against USD1,490.45 at the close on Friday.
By Lucy Heming; lucyheming@alliancenews.com
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