Last checked at 
(Alliance News) - Stocks in London ended higher on Wednesday on easing concerns over the economic impact of the deadly coronavirus following reports of a scientific breakthrough on tackling the epidemic.
Sky News reported that a UK research team working on a coronavirus vaccine had made a "significant breakthrough".
Professor Robin Shattock at Imperial College London told the broadcaster he was ready to begin testing the vaccine on animals next week.
The FTSE 100 index closed up 42.66 points, or 0.6%, at 7482.48. The FTSE 250 ended up 80.07 points, or 0.4%, at 21,520.00, and the AIM All-Share closed flat at 960.73.
The Cboe UK 100 ended up 0.6% at 12,677.62, the Cboe UK 250 closed up 0.4% at 19,424.40, and the Cboe Small Companies ended 0.1% higher at 12,492.62.
In European equities, the CAC 40 in Paris ended up 1.0%, while the DAX 30 in Frankfurt closed 1.5% higher.
"Reports of a Coronavirus treatment chivvied up European indices and US futures this morning, while a solid ADP report provided further impetus - the payroll firm issued its highest number since May 2017, with no sign of real tightness in the US labour market. As a result, investors expect further job growth and a longer economic expansion, something Donald Trump will only be too keen to shout about. The higher the market goes, the more the weakness of late January looks more like a normal pullback, especially as Coronavirus fears continue to recede into the background," said IG Group's Chris Beauchamp.
On the London Stock Exchange, paper and packaging stocks ended among the blue chip risers after a strong performance from Ireland's Smurfit Kappa, which ended 6.7% higher.
In the year to December 31,Smurfit Kappa's revenue was 1.1% higher at EUR9.05 billion from EUR8.95 billion. The packaging firm reported pretax profit of EUR677 million, swinging from 2018's EUR404 million loss.
Last year, the Dublin-based company reported EUR1.34 billion in exceptional items relating to the deconsolidation of Smurfit's business and operations in Venezuela. The government took control of Smurfit Kappa Carton de Venezuela in the third quarter of 2018. Being unable to control the business, Smurfit deconsolidated its operations in the country.
2020 has started well, said Smurfit, with the company expecting another year of "strong" free cash flow.
Smurfit's results helped to boost peers DS and Mondi which closed up 6.1% and 5.1%, respectively.
Meanwhile, easyJet closed up 3.6% after Societe Generale raised the low-cost airline to Hold from Sell.
At the other end of the large cap index, Imperial Brands ended the worst performer, down 6.7% after the tobacco firm felt the effects on a crackdown on vaping.
Tobacco trading remains in line with expectations, the West and Gauloises Blondes cigarettes maker told its annual general meeting, but group constant currency net revenue is now seen at a "similar level" to last year and adjusted earnings per share are expected to be slightly lower.
This is because of the US Food & Drug Administration's ban on certain flavours of cartridge-base vapour devices, as well as weaker-than-expected consumer demand for vapour.
Peer British American Tobacco closed flat.
The pound was quoted at USD1.2990 at the London equities close, down from USD1.3026 at the close Tuesday, after the dollar strengthened following strong US employment data.
There was a surge in US private sector employment in January, according to the latest ADP National Employment Report.
Total employment increased by 291,000 jobs in January, surpassing the revised 199,000 increase in December and above consensus, according to FXStreet, of a 156,000 gain.
The data is a prelude to the closely watched US jobs report for January due out on Friday.
"The US ADP number was robust and they confirmed President Donald Trump's narrative of 'blazing economy'. The data soared the bearish bets on gold. It confirmed that the economy is not suffering. In order words, the risk-on trade is going to stay a little longer in this market. Having said that traders are going to continue to scrutinize the upcoming data until the US NFP number which is the major focal point," said AvaTrade analyst Naeem Aslam.
Sterling saw its morning gains erased, having appreciated versus the dollar after positive UK purchasing managers' index data.
The IHS Markit/Chartered Institute of Procurement & Supply UK services PMI increased to 53.9 in January from the neutral mark of 50.0 in December. The index had registered 49.3 in November, meaning shrinkage in the sector.
January's figure marked the best reading in 16 months and was above the flash estimate of 52.9.
Headwinds from delayed decision making have lifted since the general election in mid-December, which was reflected in a "robust" improvement in order takes.
The euro stood at USD1.1002 at the European equities close, down from USD1.1035 late Tuesday.
The eurozone business activity index dipped to 52.5 in January from 52.8 the month before, primarily due to weaker expansion in France and Spain. All other nations registered stronger services growth in December, said IHS Markit, with Germany's reading rising to 54.2 in January from December's 52.9.
Meanwhile, eurozone retail sales fell month-on-month in December, reversing an increase seen the month prior, said Eurostat.
Retail sales were down 1.6% in the euro area on the month before, following a 0.8% increase in November. Annually, sales rose 1.3%, a far slower pace than the 2.3% recorded in November.
Consensus, according to FXStreet, was for a monthly decline of 0.9% and an annual rise of 2.4%.
Against the yen, the dollar was trading at JPY109.70, up from JPY109.43 late Tuesday.
Stocks in New York were higher at the London equities close, with the DJIA up 1.0%, the S&P 500 index up 0.8% and the Nasdaq Composite up 0.7%.
In company news, General Motors said its revenue fell significantly in the fourth quarter of 2019, as the car maker suffered from work stoppages.
Net sales and revenue for the three months ended December 31 was USD30.83 billion, down 20% from USD38.40 billion. The carmaker, which is based in Michigan, lost four weeks of vehicle production in the three months ended December 31 on work stoppage, which slashed wholesales by 191,000 units year-on-year.
Annual revenue fell 6.7% to USD137.24 billion from USD147.05 billion. Basic earnings per share fell 18% to USD4.62 from USD5.61 and diluted EPS fell 17% to USD4.57 from USD5.53.
The stock was flat on Wall Street.
Brent oil was quoted at USD55.86 a barrel at the equities close, up from USD55.00 at the close Tuesday.
Gold was quoted at USD1,557.60 an ounce at the London equities close, firm against USD1,552.50 late Tuesday.
The economic events calendar on Thursday has Germany factory orders at 0700 GMT.
The UK corporate calendar on Thursday has first quarter results from contract caterer Compass Group and third quarter results from postal operator Royal Mail. There are also interim results from asset manager Ashmore Group.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.