Marks & Spencer Share News (MKS)

LONDON (Alliance News) - Stocks rebounded on Tuesday as recently-heightened trade tensions appeared to simmer down after Chinese telecom firm Huawei was granted a grace period by the US.However, the dollar earner-heavy FTSE 100's gains were capped following a late surge in the pound after UK Prime Minister Theresa May set out her "new Brexit deal".The FTSE 100 index closed up 18.04 points, or 0.3%, at 7,328.92. London's blue-chip index had hit an intraday high of 7,370.02 on Tuesday.The FTSE 250 ended up 100.77 points, or 0.5%, at 19,436.36, and the AIM All-Share closed up 2.43 points, or 0.3%, at 959.44.The Cboe UK 100 ended up 0.3% at 12,428.05, the Cboe UK 250 closed up 0.5% at 17,462.78, and the Cboe Small Companies ended up 0.1% at 11,831.16.In European equities on Tuesday, the CAC 40 in Paris ended up 0.5%, while the DAX 30 in Frankfurt ended up 0.9%.Stocks rallied on Tuesday after the US showed signs of leniency towards Chinese telecom giant Huawei.Last week, US President Donald Trump signed an executive order effectively banning the Chinese firm from using US technology without government permission.However, the US Commerce Department late Monday announced a grace period of 90 days on the new policy. The US will continue to allow the Chinese technology major to purchase US goods in order to maintain existing networks and provide software updates to existing Huawei handsets.Huawei will not be allowed to buy American parts and components to manufacture new products without license approvals."This is seen as a sign the US administration don't want to turn up the heat on China just yet, but the ball is in Beijing's court," said David Madden at CMC Markets. "The trade standoff is still very much alive, but this appears to be a slight reduction in hostilities, and some traders are taking the opportunity to snap up equities."Stocks in New York were higher at the London equities close, with the DJIA up 0.6%, the S&P 500 index up 0.8%, and the Nasdaq Composite 1.1%. "Wall Street has bounced back after yesterday's poor performance, and in light of the Huawei ban delay, stocks like Lumentum, Micron Technology and Broadcom have all rallied. The chip makers suffered greatly yesterday, and now we are seeing a reversal," said Madden.While the Huawei grace period helped to boost market sentiment on Tuesday, a Paris-based think tank warned that global growth is set to remain "subpar" if trade tensions persist.The world outlook remains weak and there are many downside risks which "cast a dark shadow"."Governments can and must act together to restore growth that will be sustainable and benefit all," OECD Chief Economist Laurence Boone urged.The global economy is set to expand 3.2% in 2019, slowing from 3.5% in 2018. In 2020, this is set to improve slightly to 3.4%. In March, the Paris-based think tank had expected the world economy to advance 3.3% this year and 3.4% the next.The OECD forecasts UK GDP to slow to 1.2% in 2019, from 1.4% in 2018. In 2020, the economy is set to expand by just 1.0%.The think tank warned that Brexit-related uncertainty will continue to constrain investment until there is clarity over the UK's future trading relationship with the EU.The pound was quoted at USD1.2760 at the London equities close Tuesday, up compared to USD1.2731 at the close on Monday. Sterling had been trading below the USD1.27 mark on Tuesday morning.UK Prime Minister Theresa May on Tuesday laid out her "new" Brexit plan, warning pro-Leave members of her party that the UK risks revoking Article 50 if her deal is rejected by the House of Commons for a fourth time.May said there is "one last chance" to help MPs deliver the result of the 2016 referendum, as she offered her "new Brexit deal". She confirmed her latest Brexit deal will seek to conclude alternative arrangements for the Irish backstop by December 2020.The bill will also include a vote on whether to hold a second referendum. She added: "If MPs vote against the second reading of this bill they are voting to stop Brexit.""If they do so the consequences could hardly be greater - reject this deal and leaving the EU with a negotiated deal any time soon will be dead in the water and what would we do then?...If not no-deal then it would have to be a general election or a second referendum that could lead to revocation and no Brexit at all," she warned.The Withdrawal Agreement bill will go to the Commons in early June, with defeat likely to hasten her departure from Number 10. This follows three previous attempts to get the bill through the Commons, each suffering resounding defeats. Meanwhile, the euro stood at USD1.1164 at the European equities close Tuesday, against USD1.1169 at the same time on Monday.European Commission figures showed eurozone consumer confidence rose more than expected in May to its highest level in seven months, after weakening in the previous month.The flash consumer confidence index climbed to minus 6.5 from minus 7.3 in April, which was revised from minus 7.9. Economists had expected a score of minus 7.7. In commodities, Brent oil was quoted at USD72.00 a barrel at the London equities close Tuesday from USD72.56 late Monday.Gold was quoted at USD1,273.30 an ounce at the London equities close Tuesday against USD1,276.80 at the close on Monday.In London, Marks & Spencer shares closed up 2.1% ahead of the clothing, homeware and food retailer's annual results on Wednesday."Analysts will look for an update on the planned GBP600 million rights issue, which, alongside the dividend cut, will fund the purchase of 50% of Ocado's food retailing operations for a maximum of GBP750 million," said Russ Moul, investment director at AJ Bell.Elsewhere in the corporate calendar on Wednesday, there are annual results from postal operator Royal Mail, energy firm SSE and defence firm Babcock International.FTSE 250 constituent Galliford Try climbed 15% as it revealed plans to restructure its Construction arm. At the beginning of April, the company launched a review of its Construction business with plans to simplify its structure and refocus on key markets.The business will concentrate on its core strengths in Building, Water and Highways, Galliford explained, resulting in a reduction of up to 350 staff members across the UK. This will generate savings of up to GBP15 million from 2021, moving the unit closer to a goal of operating margins of 2% by that year.In the current year, financial 2019, Construction's profitability will be hurt by the review, with a write down of GBP40 million in respect of restructuring costs and legacy and current projects. Furthermore, the restructured business's target annual revenue will reduce to GBP1.3 billion, the company said. Electrocomponents shares finished the session 7.9% higher as it posted a double-digit rise in profit. For the financial year that ended in March, pretax profit widened 16% to GBP195.2 million from the GBP168.6 million the year prior. This was after revenue rose 9.9% to GBP1.88 billion from GBP1.71 billion the year before, up 8.5% on a like-for-like basis. Homeserve advanced 6.9% as revenue reached the GBP1.00 billion mark. For the year ended March 31, the FTSE 250 home emergency repair firm posted pretax profit of GBP139.5 million, up 13% from GBP123.3 million a year ago. This was achieved on the back of revenue rising 12% year-on-year to GBP1.00 billion from GBP899.7 million.Meanwhile, Entertainment One shares slid by 11% as annual profit dropped on one-off charges.For the financial year ended March, pretax profit plummeted 43% to GBP36.8 million from GBP64.9 million the year prior. This was after revenue fell 8.6% to GBP941.2 million from GBP1.03 billion the year before.Profit was held back by a rise in one-off charges to GBP68.0 million from GBP7.1 million the year prior, primarily related to impairments of its Home Entertainment unit. Adjusted pretax profit - excluding exceptional costs - widened 20% to GBP155.9 million from GBP130.2 million the year prior. On London's junior AIM market, Scapa Group closed down 14% as it said Chief Executive Heejae Chae is to step down.Chae has headed up the bonding and adhesive products maker for a decade, and he will remain with Scapa to help with a "smooth transition". A search for a new CEO has already begun.Scapa also released results for its year ended March 31 on Tuesday, reporting a "record" revenue of GBP311.8 million, up 7.0% on the year before. However, Scapa's pretax profit halved to GBP14.9 million from GBP28.8 million, due to GBP12.8 million in one-offs, mainly site closure costs and a goodwill impairment. Majestic Wine rose 6.1% after it confirmed that a number of parties are interested in its retail business.In late March, the company said it will be restructuring and renaming itself under its Naked Wines brand, which it bought in 2015 for GBP70 million.On Monday, Sky News said private equity firm OpCapita was one of a number of parties interested in buying Majestic Wine's store network, for at least GBP100 million. In the Wednesday economic calendar, Japanese exports and imports at 0050 BST and UK consumer and producer prices are at 0930 BST. In the afternoon, minutes from the last US Federal Reserve meeting are released at 1600 BST.