MCS.L Share News (MCS)

LONDON (Alliance News) - The return of risk-on trade was helping to lift London stocks at midday on Wednesday, as markets were given a breather from the ongoing trade spat between the US and China.Miners and Ashtead were rebounding from Tuesday's losses to boost the FTSE 100 higher, though Berkeley was missing out on Wednesday's buoyant trade following a cautious outlook as it released its annual results.The FTSE 100 index was up 1.2%, or 90.75 points, at 7,694.60 Wednesday midday. The mid-cap FTSE 250 index was up 0.8%, or 163.74 points, at 20,999.52. The AIM All-Share index was up 0.4% at 1,096.69.The Cboe UK 100 was up 1.2% at 13,046.68, the Cboe UK 250 was up 0.7% at 19,191.61, and the Cboe UK Small Companies was up 0.2% at 12,916.94."Buyers have stepped in this morning to lift markets further off yesterday's lows, and a lack of fighting talk from either of the two combatants has helped soothe nerves too. Mining stocks took a knock in London yesterday, but hopes of continued global growth have seen the sector rebound in impressive form today, contributing strongly to the FTSE 100's gains," said IG chief market analyst Chris Beauchamp.Blue-chip mining stocks such as Glencore, Antofagasta and Rio Tinto were up 3.6%, 2.9% and 2.6% respectively at midday.Ocado was sat atop the index, 4.4% higher at 990.40 pence after Peel Hunt hiked its price target on the online grocer, believing the online grocer has the potential to become the Microsoft of retail logistics. The broker moved its target on the stock up to 1,700p from 610p.Shares in the new FTSE 100 constituent have nearly tripled in value since the start of 2018. Equipment rental firm Ashtead was up 3.2% as it rebounded from Tuesday's 4.4% fall on the release of its annual results."A 'not perfect' Q4 release was not an option given the recent share price strength, and a small miss and no upgrades led to predictable weakness," said analysts at JPMorgan, the broker maintaining its Overweight rating on the stock.Housebuilders were failing to benefit from Wednesday's risk-on trade after a cautious outlook from Berkeley Group, despite the company posting a strong rise in annual profit.The FTSE 100-listed housebuilder reported pretax profit for the year to the end of April of GBP934.9 million, up 15% from GBP812.4 million the year before. This was well above consensus expectations of GBP906 million.However, revenue for the year saw a 0.7% dip to GBP2.70 billion from GP2.72 billion, mainly due to a drop in revenue in the residential segment to GBP2.57 billion from GBP2.67 billion and despite a rise in commercial revenue and proceeds from the sale of ground rent assets.Berkeley said that the housing market in the London and South East region has remained subdued, despite UK government interventions, as headwinds including property taxation, mortgage regulation and macro uncertainty continue to constrain conditions."The change of tone from Berkeley from optimistic to cautious will have a negative read-across to housebuilders on the stock market. Berkeley's chairman Tony Pidgley is seen as an authority on the market and for his company to become less bullish is a warning sign for the whole industry," said Russ Mould, investment director at AJ Bell.Barratt Developments was down 1.1%, while in the FTSE 250 Bellway was 0.7% lower. Mid-cap retirement housebuilder McCarthy & Stone was the worst performer, down 2.9% as it added to Tuesday's 17% loss and Jefferies cut the stock to Hold from Buy.On Tuesday, McCarthy & Stone said annual profit would be lower than expected and that its chief executive would retire in August.Among the FTSE 250 risers on Wednesday, JD Sports Fashion was 4.6% higher after Barclays resumed the sportswear retailer with an Overweight rating.Wizz Air, also higher following a broker upgrade, rose 4.0% as Davy lifted its rating on the low-cost airline to Outperform from Neutral.Sirius Minerals was up 3.8% after signing a pay offtake agreement to supply fertiliser product POLY4 to products and services supplier Intercontinental Trade DMCC Dubai.The supply agreement is for seven years starting from first production, and is for volumes of POLY4 increasing to 350,000 tonnes per annum in the fourth year and for exclusive marketing rights to Nigeria.Stocks in New York are seen opening higher on Wednesday, with the Dow Jones called up 0.5%, and both the S&P and Nasdaq up 0.3%.Over in mainland Europe, the CAC 40 in Paris was up 0.4% while the DAX 30 in Frankfurt was up 0.5% at midday.In European data, Germany's producer prices increased at the fastest pace in seven months in May, climbing 2.7%. This was faster than the 2% increase in April and above forecasts for a 2.5% rise.To come, the European Central Bank forum in Sintra, Portugal, on central banking concludes on Wednesday, with US Federal Reserve Chairman Jerome Powell and ECB President Mario Draghi speaking at 1430 BST.Focus in the UK on Wednesday will be on a House of Commons Brexit vote after the Lords on Monday backed giving MPs a "meaningful" say on the final deal.The UK prime minister staved off a Tory rebellion on the move last week but faces a bruising battle in the latest round of voting. Dominic Grieve, one of the leading figures in the stand-off, said he expected negotiations to "go right to the wire".Peers backed an amendment to the EU (Withdrawal) Bill, tabled by Viscount Hailsham, on Monday that would require the government to allow MPs to vote on how it would proceed in the absence of a Brexit deal by January 21 next year.Sterling was quoted at USD1.3157 Wednesday midday, down slightly compared to USD1.3179 at the London equities close on Tuesday."Should the government lose the vote and parliament gets the meaningful vote on Brexit (implying a cushion against a cliff edge Brexit), this would be GBP positive, with EUR/GBP likely testing June's low of 0.8718. Yet, the subsequently rising probability of a government collapse should limit any material GBP [gains]," said analysts at ING.In UK data on Wednesday, the Confederation of British Industry said its monthly survey showed the lull in manufacturing activity "may be over".The CBI said 33% of manufacturers reported total order books to be above normal, and 20% said they were below normal, giving a balance of plus 13%. At the same time, 20% of firms said their export order books were above normal, and 11% said they were below normal, giving a balance of positive 9%.Manufacturers expect output growth to slow slightly in the coming quarter, with 30% predicting volumes to increase, and 12% expecting a decline, giving a balance of positive 18%."The recovery in orders and a return to bumper growth in production suggests the lull in manufacturing activity may be over. While risks to demand persist from Brexit and escalating global trade tensions, firms can work with the Government to nurture a pro-enterprise environment that helps UK growth to shift up a gear," said Anna Leach, CBI head of economic intelligence.