WPCT.L Share News (WPCT)

LONDON (Alliance News) - Having opened lower across the board, stocks in London were mixed at midday on Tuesday with investors shrugging off US-China trade war concerns.In London, the FTSE 100 was up 16.86 points, or 0.2%, at 7,201.66 at midday. The FTSE 250 was up 5.09 points at 18,882.26. However, the AIM All-Share was down 1.0% at 939.91.The Cboe UK 100 index was up 0.3% at 12,217.55. The Cboe UK 250 was up 0.1% at 16,962.53, but the Cboe UK Small Companies was 0.1% lower at 11,772.66.In Paris the CAC 40 and the DAX 30 in Frankfurt were up 0.2% and 1.0% respectively. "European markets are moving higher as we see the slight optimism from a more dovish Federal Reserve overshadow ongoing fears surrounding US trade wars with China and Mexico," said IG Group's Josh Mahony. On the London Stock Exchange, Hargreaves Lansdown was the worst blue-chip performer, down 4.3%.Shares in the fund supermarket fell after star fund manager Neil Woodford suspended withdrawals from its flagship equity fund, which had been part of Hargreaves' favourite fund investment list. The stockbroker on Monday removed the Woodford Equity Income Fund and the Woodford Income Focus Fund from its Wealth 50 list. "As the fund can't be traded, we have made the decision to remove it from our Wealth 50 list of favourite funds. We have also removed the Woodford Income Focus Fund," Hargreaves said.Woodford Patient Capital Trust was the worst performer in the FTSE 250. Neil Woodford suspended withdrawals from his equity income fund as its underperformance resulted in significant outflow of investors. The equity fund is managed by Woodford Investment Management, which also manages Woodford Patient Capital Trust. Trading in Woodford Patient Capital Trust remains unaffected by the suspension. In a statement on Monday, LF Woodford Equity Income Fund said: "Following an increased level of redemptions, this period of suspension is intended to protect the investors in the fund by allowing Woodford, as previously communicated to investors, time to reposition the element of the fund's portfolio invested in unquoted and less liquid stocks, in to more liquid investments." Midcap construction firm Kier Group, in which Woodford Investment Management holds a 10% stake, was down 6.3%. Kier shares dropped by around 40% on Monday after it said adjusted operating profit for financial 2019 will be lower than previously expected due to mounting volume pressures.Further, midcap retail property investor NewRiver REIT, in which Woodford Investment Management has a 29% holding, was down 6.1%. The stock also was downgraded to Hold from Buy by Berenberg. Meanwhile, Royal Dutch Shell 'A' and 'B' shares were down 0.8% and 0.9% respectively, tracking spot oil prices lower quoted at USD60.47 a barrel, down from USD61.46 at the London equities close Monday. Shell raised its future free cash flow guidance and said it expects to return USD125 billion to shareholders over the five-year period of 2021 to 2025.In a strategy update, the oil major said it remains on track to deliver on its 2020 commitments and expects organic free cash flow of around USD35 billion for 2025 at USD60 per barrel.By the end of next year, Shell plans to complete its previously announced USD25 billion share buyback programme, reach a gearing level of 25%, and deliver USD28 billion to USD33 billion of organic free cash flow at USD60 per barrel. It also expects to raise its dividend payment "when there is line of sight to the completion of the USD25 billion share buyback programme".The pound was quoted at USD1.2674 at midday, up from USD1.2622 at the London equities close Monday, despite disappointing UK construction PMI data.The UK construction sector saw a "modest" fall in output for May, according to the latest survey report from IHS Markit.The construction purchasing managers' index reading was 48.6 in May, down from 50.5 in April, missing consensus estimates for an unchanged reading. The figure fell beneath the line of 50 which separates expansion from contraction.Markit said the latest reading registered below the 50.0 no-change mark for the third time in the past four months. Additionally, it was the lowest score since the snow-related downturn in construction output during March 2018, when the so-called 'Beast from the East' snowstorm engulfed parts of the UK.Entering the second day of his UK state visit, US President Donald Trump alongside Prime Minister Theresa May hosted round table talks with business leaders at St James' Palace attended by senior ministers, officials and senior representatives of five US and five British firms.The euro stood at USD1.1247 at midday, higher than USD1.1204 at the European equities close Monday. In economic news from the continent, the eurozone's headline inflation eased far more than expected in May to its lowest level in over a year, preliminary estimates from Eurostat showed.Inflation slowed to 1.2% in May from 1.7% in April, while economists had predicted a 1.5% price growth. The latest inflation rate was the lowest since April last year, when it was at the same level.Core inflation, which excludes prices of energy, food, alcohol & tobacco, eased to 0.8% from 1.3%. Economists had expected a rate of 1.1%. In March, core inflation was 0.8%."The EUR/USD surged higher yesterday as the dollar sold off, which gathered pace after the Federal Reserve's James Bullard said a rate cut might be warranted. The news also helped to push precious metals further higher. However, the euro's rally has come to a halt, at least for now, following the publication of weaker-than-expected Eurozone consumer inflation data this morning. It remains to be seen which direction the world's most heavily-traded pair is headed given the upcoming ECB rate decision and the US employment report later on this week," said Forex.com analyst Fawad Razaqzada. A reduction in US interest rates "may be warranted soon" due in part to escalating global trade tensions, St Louis Federal Reserve President Bullard said on Monday. He added that the Fed faces a US economy that is expected to grow more slowly going forward and warned the slowdown could be sharper than expected due to ongoing global trade regime uncertainty.Stocks in New York were set for a higher open on Tuesday following a broadly lower close on Monday, as technology stocks were sold off amid antitrust scrutiny from US lawmakers. The DJIA and S&P 500 index were called up 0.5% and the Nasdaq Composite pointed up 0.6%."Talk of a rate cut by the Federal Reserve may have given US equities a much-needed shot in the arm, but upside has certainly been tempered. Concerns as to just how damaging the ongoing trade dispute may be, combined with the fact that policy easing would be a response to self-inflicted economic turmoil appears to have reigned in gains for US futures, whilst Asian markets also took the news with a degree of concern. High profile economic readings due for release today now have the potential to disappoint, especially if last night's comments by the Fed were a move to reassure the market that it had matters in hand," said AXITrader's James Hughes. Still to come in the economic events calendar is US factory orders at 1500 BST, while Fed Chair Jerome Powell will deliver a speech on monetary policy at a conference in Chicago, Illinois at 1445 BST. In addition, Tuesday's closing prices will be used for the latest FTSE index reshuffle with JD Sports Fashion and AVEVA in-line for promotion to the FTSE 100. Conversely, easyJet looks set to be demoted to the FTSE 250 along with Hikma Pharmaceuticals - provided Marks & Spencer can escape the drop thanks to its recent rights issue.