London close: Footsie edges higher on the back of gains for tobacco stocks

(Sharecast News) - London equities finished in the green on Wednesday, with tobacco stocks on the up after a well-received update from British American Tobacco, and investor sentiment underpinned by optimism over a China-US trade deal.
The FTSE 100 was 0.36% higher at 7,429.78, while the pound was up 0.14% against the US dollar at 1.28816 and 0.3% versus the euro at 1.1708.

In parallel, the second-tier index put on 0.43% to 20,954.32.

Neil Wilson, chief market analyst at Markets.com, said all eyes will be on the multilevel regression and post-stratification (MRP) poll from YouGov, which is due to be released at 2200 GMT.

"Given most traders will be in bed or the pub it could result in some whippy price action in GBP pairs. This detailed survey aims to offer a prediction for every seat (ex-Northern Ireland) and it correctly predicted the hung parliament in 2017," he said.

"With the Tories apparently sitting pretty, this poll has the potential to change the narrative of the campaign if it shows a different outcome. Remember, a Tory majority tends to be near-term supportive of the pound as anything else is messy and uncertain."

The positive tone in markets followed on from fresh closing highs on Wall Street on Tuesday thanks to a strong performance from retailers and after US President Donald Trump said the US and China were in the "final throes of a very important deal" and that things were going "very well".

However, Trump also said that the US would "want to see it go well in Hong Kong".

CMC Markets analyst David Madden said: "The back and forth of the trade discussions has been at the forefront of traders' minds recently. Equity markets are posting gains, but the upside moves aren't massive as dealers are mindful that things still could fall apart. The breakdown in trade talks in June hasn't been forgotten by traders."

In equity markets, British American Tobacco gained ground after saying it expects full-year adjusted operating profit and revenue growth to be in the upper half of its long-term guidance range, driven by strong results in the US. Imperial Brands was the biggest riser, however.

Grainger was on the front foot as the residential landlord posted a 30% jump in full-year pre-tax profit as net rental income grew.

Drinks maker Britvic reversed earlier losses to trade marginally higher after it reported a decline in full-year pre-tax profit following a "challenging" year in France.

On the downside, shares of aerospace and defence giant Rolls-Royce fell after it was downgraded to 'equalweight' by Morgan Stanley, while Johnson Matthey retreated as Liberum cut its earnings outlook for the company and price target.

Publisher Future was under the cosh after a discounted share placing.

Market Movers

FTSE 100 (UKX) 7,429.78 0.36%
FTSE 250 (MCX) 20,954.32 0.43%
techMARK (TASX) 4,123.19 0.34%

FTSE 100 - Risers

Hiscox Limited (DI) (HSX) 1,362.00p 3.18%
Prudential (PRU) 1,385.00p 3.13%
Auto Trader Group (AUTO) 564.60p 2.95%
British American Tobacco (BATS) 3,074.00p 2.95%
Imperial Brands (IMB) 1,713.40p 2.64%
ITV (ITV) 144.80p 2.48%
British Land Company (BLND) 574.40p 2.39%
Barratt Developments (BDEV) 684.40p 2.33%
Evraz (EVR) 374.80p 2.24%
Berkeley Group Holdings (The) (BKG) 4,679.00p 2.05%

FTSE 100 - Fallers

Rolls-Royce Holdings (RR.) 715.80p -3.40%
Meggitt (MGGT) 643.80p -2.13%
Compass Group (CPG) 1,875.50p -2.09%
Johnson Matthey (JMAT) 2,960.00p -1.82%
JD Sports Fashion (JD.) 773.40p -1.80%
Melrose Industries (MRO) 233.80p -1.72%
Glencore (GLEN) 247.00p -1.00%
NMC Health (NMC) 2,602.00p -0.91%
Royal Dutch Shell 'A' (RDSA) 2,238.00p -0.82%
BP (BP.) 489.35p -0.76%

FTSE 250 - Risers

Aston Martin Lagonda Global Holdings (AML) 586.80p 10.68%
UDG Healthcare Public Limited Company (UDG) 810.00p 8.00%
Network International Holdings (NETW) 576.00p 5.49%
Sirius Minerals (SXX) 3.55p 4.72%
Investec (INVP) 448.60p 4.01%
Trainline (TRN) 468.00p 4.00%
Sirius Real Estate Ltd. (SRE) 81.90p 3.67%
Marston's (MARS) 131.40p 3.14%
Marshalls (MSLH) 791.50p 3.06%
IP Group (IPO) 61.00p 3.04%

FTSE 250 - Fallers

Future (FUTR) 1,446.00p -8.02%
Riverstone Energy Limited (RSE) 426.00p -3.18%
Spirent Communications (SPT) 209.50p -2.56%
PureTech Health (PRTC) 278.00p -2.46%
Marks & Spencer Group (MKS) 195.95p -2.37%
Oxford Instruments (OXIG) 1,588.00p -2.34%
Capital & Counties Properties (CAPC) 245.50p -2.19%
Mitchells & Butlers (MAB) 457.00p -2.14%
Ultra Electronics Holdings (ULE) 2,132.00p -2.02%
QinetiQ Group (QQ.) 334.60p -1.93%