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(Alliance News) - Stocks in London ended mostly higher on Tuesday with the FTSE 100 just in the green as investors continued to contend with US stimulus uncertainty, rising coronavirus cases and tighter restrictions.
Greater Manchester will be placed under stricter coronavirus controls after talks between the government and civic leaders concluded without an agreement.
The region's mayor Andy Burnham held last-ditch talks with UK Prime Minister Boris Johnson earlier on Tuesday aimed at securing additional financial support for his consent on new restrictions.
But Communities Secretary Robert Jenrick said the discussions have concluded "without an agreement" and accused the mayor of being "unwilling to take the action that is required".
Pubs and bars will be closed, unless they are serving substantial meals, for a 28-day period, along with betting shops, casinos, bingo halls, adult gaming centres and soft play areas.
The measures are expected to come into effect just after midnight on Saturday.
The FTSE 100 index closed up 4.57 points, or 0.1%, at 5,889.22. The FTSE 250 ended up 63.12 points, or 0.4%, at 17,929.20. The AIM All-Share closed down 2.12 points, or 0.2%, at 972.99.
The Cboe UK 100 ended up 0.2% at 586.15, the Cboe 250 closed up 0.6% at 15,172.56, and the Cboe Small Companies ended down 0.3% at 9,364.15.
In Paris the CAC 40 ended flat, while the DAX 30 in Frankfurt ended down 0.9%.
"Markets throughout Europe and the US are on the rise today, with stocks attempting to claw back some of the losses seen yesterday. With traders continuing to mentally juggle a whole raft of significant economic and political factors that continue have a major bearing on market pricing, it comes as no surprise to find the FTSE 100 moving nowhere fast over the course of the week," said IG Group's Josh Mahony.
"A breakdown in negotiations between local leaders and the government looks to have resulted in a fresh tier 3 lockdown in Manchester today. However, while many will feel aggrieved, Manchester is likely to be just one of many regions which will see huge economic suffering in response to a second-wave of infections," Mahony added.
On the London Stock Exchange, British Airways parent International Consolidated Airlines ended the best blue chip performer, up 6.9% as rapid one-hour Covid-19 tests began at Heathrow airport.
From Tuesday, the facilities in Terminals 2 and 5 will initially offer tests to passengers travelling to Hong Kong and Italy before they fly.
To start, the facilities will offer Loop-mediated Isothermal Amplification testing and will expand to offer antigen testing in the coming weeks. Unlike polymerase chain reaction tests - which are used by the NHS - LAMP and antigen tests can be processed without being sent to a laboratory.
One criticism of PCR is that it amplifies DNA from both live and dead cells and can yield positive results based on harmless dead cells.
Midcap peer easyJet ended up 5.7%, while Irish carrier Ryanair finished 1.3% higher.
At the other end of the large caps, housebuilders Taylor Wimpey, Barratt Developments, Persimmon and Berkeley ended down 1.8%, 1.2%, 1.1%, and 1.3% respectively, in a negative read-across from midcap peer Bellway.
Newcastle Upon Tyne-based Bellway closed down 3.7% after the housebuilder posted a dive in earnings for financial 2020, driven by Covid-19 disruption.
For its financial year ended July 31, Bellway posted pretax profit of GBP236.7 million, down 64% year-on-year from GBP662.6 million. This was as revenue fell 31% to GBP2.23 billion from GBP3.21 billion.
The company noted its number of housing completions plunged 31% to 7,522 during a year which was hit by the Covid-19 lockdown, bringing the housing sector to a halt.
Trainline ended worst FTSE 250 performer, down 13% after the rail ticketing platform said Chief Executive Officer Clare Gilmartin will end a seven-year stint in the role in February. Chief Operating Officer Jody Ford will succeed Gilmartin as CEO.
The pound was quoted at USD1.2958 at the London equities close, weakening from USD1.300 at the close Monday, on Brexit-related fears.
The EU's chief negotiator Michel Barnier urged the UK to use the little time that remains to clinch a post-Brexit deal, with London refusing to restart talks until Brussels signals willingness to make concessions.
Barnier made his plea to end the stalemate after a phone call with his UK counterpart David Frost, who last week announced that talks were over after EU leaders ordered Britain to make a move.
"My message: we should be making the most out of the little time left. Our door remains open," Barnier tweeted after the call.
If no deal is found and implemented before December 31, the UK will end up trading with the EU on bare bones WTO regulations - a massive disruption to cross-Channel business.
Frost called the latest phone call "a constructive discussion", but said "the situation remained as yesterday, and they will remain in contact."
The euro stood at USD1.1825 at the European equities close, up sharply from USD1.1785 late Monday.
Against the yen, the dollar was trading at JPY105.57, firm from JPY105.45 late Monday.
Stocks in New York were higher at the London equities close ahead of Tuesday's looming deadline for Washington policymakers to agree on a long-awaited US fiscal stimulus bill.
The DJIA was up 0.7%, the S&P 500 index up 0.7% and the Nasdaq Composite up 0.4%.
Negotiations on a spending package to follow up on the USD2.2 trillion CARES Act and aid the coronavirus-ravaged US economy have dragged on for months, and House Speaker Nancy Pelosi on Sunday gave a 48-hour deadline for negotiators to agree on a deal if it is to be passed before the November 3 election.
Pelosi is set to speak with her Republican counterpart Treasury Secretary Steven Mnuchin again on Tuesday, even as Senate Majority Leader Mitch McConnell has downplayed the possibility of a large package getting through his chamber.
Meanwhile, the US government has sued Alphabet's Google accusing the Silicon Valley titan of maintaining an "illegal monopoly" in online search and advertising, in the country's biggest antitrust case in decades, opening up the door to a potential breakup of the company.
The politically charged case, which could take years to play out, opens up a new battle between the US government and Big Tech with potentially major implications for the sector.
Deputy Attorney General Jeffrey Rosen said the case filed with 11 states takes aim at Google's dominance of the online ecosystem.
On the corporate front, Procter & Gamble was up 1.4% after the consumer goods firm reported a good start to its financial year, with first quarter earnings growing and its sales outlook boosted.
Net sales for the three months to the end of September rose 9% to USD19.32 billion from USD17.80 billion a year ago, with organic sales up 9%. Cost of sales rose at a slower pace than revenue, up 5% to USD9.14 billion.
IBM was down 6.5% after the technology firm said late Monday that revenue slipped for the third consecutive quarter this year. IBM said it took in USD17.56 billion during the three months that ended on September 30, down 2.6% from USD18.03 billion in the same period a year earlier.
Brent oil was quoted at USD42.48 a barrel at the equities close, lower from USD42.92 at the close Monday.
Oil prices eased back, a day after OPEC and other major crude producers refrained from altering output policy despite weak virus-hit demand and stubborn oversupply.
Gold was quoted at USD1,908.45 an ounce at the London equities close, little changed against USD1,908.70 late Monday.
The economic events calendar on Wednesday has UK inflation data at 0700 BST.
The UK corporate calendar on Wednesday has third quarter production figures from miners Antofagasta, Fresnillo and Hochschild Mining.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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