(correcting net inflow figure for May in St James Place paragraph.)
(Alliance News) - Stock prices in London are seen opening higher on Tuesday, tracking gains in Asian equity markets after US President Donald Trump provided reassurance that the US-China trade deal was "fully intact".
In early company news, wealth manager St James's Place reported a robust performance amid market volatility caused by the Covid-19 pandemic. Food producer Cranswick raised its dividend after a positive set of annual results.
IG futures indicate the FTSE 100 index is to open 22.38 points higher at 6,267.00. The blue-chip index closed down 47.98 points, or 0.8%, at 6,244.62 on Monday.
The Japanese Nikkei 225 index closed up 0.8%. In China, the Shanghai Composite is up 0.1%, while the Hang Seng index in Hong Kong is up 0.9%.
Stock prices in Asia endured a volatile session after top White House economics adviser Peter Navarro said on Monday that the US-China trade pact signed in January was "over", fanning fears of a renewed trade war and sparking an equity sell-off.
However, Trump later tweeted: "The China Trade Deal is fully intact. Hopefully they will continue to live up to the terms of the Agreement!"
St James's Place said new business inflows and funds under management remain "robust" in a challenging environment.
Funds under management stood at GBP112.58 billion on May 31, up 6.4% from GBP105.83 billion at the same time last year. Net inflows during the first five months of 2020 were GBP3.85 billion, up from GBP3.71 billion.
Net inflows for May totalled GBP670 million, down from GBP730 million.
St James's Place said fund under management benefited from the retention of existing client investments and a recovery in world stock markets.
"We remain encouraged by the inflows we are continuing to experience and expect June gross inflows to be similar to May, though the short to medium-term impact of COVID-19 and economic volatility on our flows remains uncertain," said Chef Executive Andrew Croft.
Pork and poultry producer Cranswick said it is confident in its long-term prospects after reporting a strong set of annual results.
For the financial year that ended March 28, revenue rose 16% to GBP1.67 billion from GBP1.44 billion the year before, and pretax profit increased 20% to GBP104.0 million from GBP86.5 million.
Cranswick said a combination of new contract wins, strong export demand, an uplift in poultry revenue, and the pass-through of higher pig prices contributed to robust revenue growth across all categories.
Further, Cranswick said the average number of pigs processed each week during the recent year increased by 7.9% to 60,000 and reached record levels in March, due to ongoing export demand and increased retail demand during the early stages of the Covid-19 outbreak in the UK.
The Hull-based firm lifted its full-year dividend by 8.1% to 60.4 pence from 55.9p in financial 2019, which it said reflects "30 years of unbroken dividend growth".
CEO Adam Couch said: "The strong growth and strategic progress we have made over the last 12 months has been made possible by the platform we have built and the pipeline we have laid down in recent years. Our positive momentum is a reflection of the continued investment we make in our infrastructure and the quality and capability of all our colleagues.
"There has been a positive start to trading in the new financial year, though we remain mindful of the uncertainty around the longer-term effects of the Covid-19 crisis and Brexit negotiations. Nonetheless, our outlook for the current year is unchanged and we have a solid platform from which to continue Cranswick's successful long-term development."
Ted Baker confirmed that John Barton will assume the role of non-executive chair from July 1. Acting chair Sharon Baylay had confirmed that she would not seek re-election to the board at the company's annual general meeting on July 21. Barton is chair of budget airline easyJet.
The pound was quoted at USD1.2470 early Tuesday, up from USD1.2441 at the London equities close on Monday.
Cinemas, museums and art galleries will be able to begin re-opening their doors from next month in the latest easing of the coronavirus lockdown in England.
UK Prime Minister Boris Johnson is due to set out the results of a review of the two-metre social-distancing rule in the commons on Tuesday - amid a widespread expectation it will be cut to one metre.
Much of the focus has been on the hospitality sector - with detailed guidance due on how pubs, bars and restaurants can start gradually to re-open from July 4.
The euro was quoted at USD1.1265, up from USD1.1253. Against yen, the dollar was quoted at JPY107.15, up from JPY106.85 in London.
Brent oil was quoted at USD42.96 a barrel early Tuesday, up from USD42.58 late Monday.
Gold was priced at USD1,754.09 an ounce, marginally lower from USD1,757.90 an ounce at the London equities close Monday.
In the economic calendar on Tuesday, there is a German composite PMI at 0830 BST followed by the same from the eurozone and UK at 0900 BST and 0930 BST respectively. A US PMI is due in the afternoon at 1445 BST.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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