WPP Share News (WPP)

(Alliance News) - London's FTSE 100 stock index extended gains on Tuesday after the pound weakened following some disappointing UK construction data, while a steep fall for Funding Circle put the mid-cap FTSE 250 under pressure.The FTSE 100 was up 48.25 points, or 0.6%, at 7,545.75 Tuesday midday. The FTSE 250 was just 7.56 points higher at 19,642.22, while the AIM All-Share was up 0.3% at 920.54.The Cboe UK 100 index was up 0.6% at 12,795.81. The Cboe UK 250 was flat at 17,549.30, while the Cboe UK Small Companies was unchanged at 11,351.39.In mainland Europe, the CAC 40 index in Paris and DAX 30 in Frankfurt were up 0.1% and flat respectively in afternoon trade."Yesterday's optimism in equity markets is beginning to look a little over-eager, with some already drawing worrying parallels to the November 2018 G20 summit, which was followed up by a dramatic fall for equities," said Chris Beauchamp, chief market analyst at IG.However, the FTSE was outperforming its counterparts in mainland Europe as the pound stumbled following anaemic UK construction data. IHS Markit said the Chartered Institute of Procurement & Supply UK Construction Purchasing Managers' Index fell to 43.1 points in June from 48.6 in May, pushing the print deeper into contraction territory, away from the 50 point neutral mark.Economists had expected the June figure to rebound modestly to 49.3 points.Michael Hewson at CMC Markets called the miss "shocking". "It would appear that the recent stalling of house prices is seeing a slowdown in this particular sector...It also calls into question the Bank of England thinking that a rate rise is more likely than a rate cut," Hewson continued. "If anything these numbers scream rate cut, though its questionable what any central bank can do while our politicians continue to bicker over a Brexit solution."The construction-sector print comes just a day after IHS Markit showed UK manufacturing activity weakened by more than expected in June, slipping to 48.0 points from 49.4 in May."Coming off the back of yesterday's manufacturing figure, the outlook for the UK economy has taken a turn for the worse," said IG's Beauchamp. "All eyes are on the services figure tomorrow, with a dire future for an already beleaguered pound in store should this vital figure turn southwards."Sterling was quoted at USD1.2613 at midday, down from USD1.2649 late Monday.The weakened pound's boost to the overseas earner-heavy FTSE 100 helped to overcome a 4.7% slip for specialty chemicals firm Croda International after UBS cut the stock to Neutral from Buy. InterContinental Hotels Group was hurting as well after a downgrade from UBS, with the Swiss bank lowering the Holiday Inn owner to Sell from Neutral. WPP shed 2.2% after the marketing and advertising firm confirmed it has entered into discussions with private investment firm Bain Capital to dispose of a majority shareholding in data firm Kantar.Such a deal would value Kantar as a whole at a headline enterprise value of USD4 billion. Bain Capital's proposal is subject to negotiation, the FTSE 100-listed advertising and marketing firm said, adding that there is no certainty these discussions will result in a transaction involving Kantar.Putting pressure on the FTSE 250 was Funding Circle Holdings, down 18%. The small- and medium-sized business lending platform warned economic uncertainty is leading to lower loan demand. As a result, Funding Circle now sees 2019 revenue growth 20% on 2018, from previous guidance of 40% revenue growth.Funding Circle has "further tightened" lending to higher-risk band businesses, which has affected volumes, but the company believes this will protect returns for investors.Plus500 rose 3.4% after the contract-for-difference trading provider said it was "pleased" with its overall performance in the first half of 2019.The first quarter was hit by low levels of volatility in financial markets, Plus500 said, but revenue in the second quarter jumped 74% on the first quarter to USD94 million. As a result, first half revenue was USD148 million, but this would be well below, by some 68%, the USD465.5 million posted in the first half of 2018, a record period. Looking to New York on Tuesday, the Dow Jones is called to open 0.1% lower, as is the S&P 500, while the Nasdaq is pointed down 0.2%.In the economic events calendar in the US is the Redbook index at 1355 BST and API weekly crude oil stocks at 2130 BST.The US on Monday proposed USD4 billion in tariffs on a range of EU products - including parmesan cheese and Scotch and Irish whiskey - over subsidies for commercial aircraft.The list also includes sausages, hams, pasta, olives and many other cheeses including reggiano, provolone, edam and gouda. The potential tariffs are due to "EU subsidies on large civil aircraft," the Office of the US Trade Representative said in a statement.For more than 14 years, Washington and Brussels have accused each other of unfairly subsidizing aviation giants Boeing and Airbus, respectively, in a tit-for-tat dispute that long predates US President Donald Trump's time in office. The Boeing-Airbus spat is the longest and most complicated dispute dealt with by the World Trade Organization.While tensions between the US and EU heated up, conditions around Trump's other trade war front showed tentative signs of improvement. Trump said that talks on a trade deal with Beijing have resumed following a weekend truce struck with China's Xi Jinping on the sidelines of the Group of 20 summit."It's already begun," Trump told reporters at the White House when asked if trade negotiations had restarted. "They're speaking very much on the phone but they're also meeting."