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(Alliance News) - Stock prices in London were higher at midday on Tuesday as both the US and UK appeared likely to avoid pre-Christmas lockdowns and as investors also took heart from the efficacy of booster shots.
The FTSE 100 index was up 65.61 points, or 0.9%, at 7,263.64. The mid-cap FTSE 250 index was up 277.12 points, or 1.2%, at 22,827.01. The AIM All-Share index was up 8.74 points, 0.8%, at 1,167.59.
The Cboe UK 100 index was up 0.9% at 720.50. The Cboe 250 was 1.4% higher at 20,220.62 and the Cboe Small Companies was up 0.3% at 14,790.77.
In mainland Europe, the CAC 40 stock index in Paris was up 0.6%, while the DAX 40 in Frankfurt was 0.9% higher.
ActivTrades commented: "Even if market sentiment remains weighed down by the prospect of further lockdowns due to the rise in virus cases sparked by the Omicron variant, hopes of a limited impact due to the efficacy of current vaccines linger. Global uncertainty remains high as investors struggle to assess how this new wave will impact economies and monetary policies, especially at a time where hawkish pivots have started."
In the FTSE 100, JD Sports Fashion was the best performer, up 3.5%, with the sportswear retailer benefiting from a positive read-across from athletic apparel maker Nike.
Late Monday, Nike reported second-quarter sales and profit growth despite industry-wide supply chain disruptions.
For the three months to November 30, revenue rose 1% to USD11.36 billion from USD11.24 billion a year ago. Nike's sales were flat on a currency-neutral basis as it continued to grapple with ongoing supply chain issues, it said.
The stock were up 3.7% in pre-market trade in New York on Tuesday.
Schroders was up 2.6% after the asset manager confirmed it reached agreement to acquire a 75% shareholding in Greencoat Capital Holdings for an initial GBP358 million.
The London-based money manager highlighted that Greencoat is one of Europe's largest renewable infrastructure managers, with GBP6.7 billion of assets under management at November 30. Schroders said the deal includes a potential earn out, payable three years after completion, which is subject to stretch revenue targets and the continued employment of the senior management team in the Greencoat business. It is capped at GBP120 million.
In the FTSE 250, Tui was up 3.8% after Peel Hunt started coverage on the Anglo-German holiday operator with a Hold rating.
Rank Group was up 2.1%. The casino operator poached its new finance chief from estate agent Foxtons.
Rank said it has appointed Richard Harris as chief financial officer and board director, with effect from May 1. Harris will join Rank from Foxtons, where he has been CFO June 2019. He previously spent 11 years at retailer Marks & Spencer in a number of senior finance roles.
In response, Foxtons said it has promoted Chris Hough to CFO and executive director. Foxtons shares were up 4.5%.
Hough currently is director of finance and company secretary, having joined Foxtons in May 2019. Harris will remain with Foxtons until April to ensure an orderly handover to Hough, Foxtons said.
Elsewhere, AIB Group was down 2.8%. The Irish government said it intends to sell part of the state's 71% stake in the lender through a trading plan managed by Merrill Lynch International.
Minister for Finance Paschal Donohoe has instructed the US investment bank, part of Bank of America, to target a sale of up to, but no more than, 15% of the expected aggregate total trading volume in shares of AIB.
The government said the total number of shares sold will depend on market conditions. The Merrill Lynch-led programme will begin in mid-January and run for six months. AIB has a market capitalisation of about EUR5.76 billion.
The pound was quoted at USD1.3255 at midday on Tuesday, up from USD1.3221 at the London equities close Monday.
New restrictions are unlikely to stop Christmas celebrations in the UK this week but Prime Minister Boris Johnson has urged caution amid speculation further measures will be needed to halt the spread of the Omicron variant.
But as Johnson promised to keep the data under constant review, the Queen abandoned her Christmas at Sandringham and London Mayor Sadiq Khan cancelled the capital's New Year's Eve celebrations.
After a special two-hour meeting of the Cabinet on Monday, the prime minister said the government needs to be clearer about the rate of hospital admissions associated with Omicron, and the effectiveness of vaccines against it, before imposing additional measures in England to prevent the spread of the virus. Johnson said the government will "reserve the possibility" of implementing new restrictions.
Analysts at OFX said: "Although sterling has staged a slight recovery this morning, it is definitely one of the major losers in the run up to Christmas as there is a huge concern on how the UK hospitality sector will be effectively shut down from 28th December onwards, with curbs on household mixing also to be introduced."
The euro was priced at USD1.1289, down from USD1.1299. Against the Japanese yen, the dollar was trading at JPY113.69, higher against JPY113.41.
Brent oil was quoted at USD72.40 a barrel on Tuesday at midday, rebounding from USD69.78 late Monday. Gold stood at USD1,796.88 an ounce, higher against USD1,793.80.
US stock market futures were pointed to a higher open following steep losses on Monday amid uncertainty over the economic effects of the Omicron variant.
The Dow Jones Industrial Average was called up 0.9%, the S&P 500 up 0.9% and the Nasdaq Composite up 1.0%. They indices had closed down by 1.1% to 1.2% on Monday.
US President Joe Biden is set to deliver an address on Covid-19 on Tuesday after urging Americans to get vaccinated with the fast-spreading Omicron variant confirmed as the dominant strain in the hard-hit country.
Still, Biden does not plan on "locking the country down" in response to a surge in coronavirus cases, the White House said Monday.
His address comes as the World Health Organization called for vigilance over the holiday period with fresh virus surges reported globally.
On the corporate front, Micron Technology will be in focus after the computer memory and data storage company late Monday reported positive earnings.
Micron posted revenue of USD7.69 billion for first quarter which ended December 2, up from USD5.77 billion year-on-year. Net income jumps to USD2.31 billion from just USD803 million a year ago, and diluted earnings per share surge to USD2.04 from USD0.71. For the second quarter, revenue is seen around USD7.5 billion and diluted EPS around USD1.83.
The stock was up 7.8% in pre-market trade in New York.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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