(Alliance News) - London stocks continued to edge higher on Wednesday at midday, extending the previous session's gains, with market sentiment upbeat despite the new SARS-like virus in China continuing to spread.
Still ahead is the US Federal Reserve's latest interest rate decision due at 7 pm London time.
The FTSE 100 index was up 17.25 points, or 0.2%, at 7,497.94. The FTSE 250 was up 63.19 points, or 0.3%, at 21,496.25, and the AIM All-Share was up 0.4% at 957.55.
The Cboe UK 100 was up 0.1% at 12,698.55, the Cboe UK 250 was up 0.2% at 19,415.98, and the Cboe Small Companies up 0.1% at 12,473.81.
In European equities on Wednesday, the CAC 40 in Paris was up 0.3%, while the DAX 30 in Frankfurt was 0.1% higher.
"Share markets climbed almost everywhere this morning, extending yesterday's gains, with market sentiment improving ahead of today's FOMC meeting in the US. The 'risk-on' mood seems to be back on track with investors focusing on yesterday's positive US data as well as Apple's solid results despite disruption caused by the deadly coronavirus," said Pierre Veyret, technical analyst at ActivTrades.
"The Federal Reserve is highly expected to maintain rates at their current level, marking a pause to the recent dovish moves from Jerome Powell and providing a positive message about the soundness of the US economy to investors."
Ahead of the Fed, which delivers its latest interest rate decision at 1900 GMT, Wall Street was on course for a higher start. The Dow Jones was pointed up 0.1% and the S&P 500 up 0.2%, while the Nasdaq Composite was indicated up 0.3%.
Shares in Nasdaq constituent Apple rose 2.2% in the New York pre-market Wednesday after the iPhone maker beat analyst expectations for its first quarter.
Apple got off to a fast start to its 2020 financial year, with first-quarter profit of USD22.2 billion, or USD4.99 per share, on revenue of USD91.8 billion. Analysts polled by FactSet had predicted earnings of USD4.54 per share on revenue of USD88.5 billion.
In London, Whitbread was among the top blue-chip performers at midday, up 2.1% after HSBC raised the Premier Inn hotel chain owner to Buy from Hold.
FTSE 250-listed Quilter was up 4.9% after the firm said it managed to generate net client cash inflow for all of 2019, reversing the net outflow seen in the first three quarters of the year.
The financial services firm was spun out of Anglo-South African financial services firm Old Mutual in June 2018.
Net client cash inflow for 2019 as a whole was GBP300 million, a significant improvement over the net outflow of GBP200 million recorded in the nine months to September. However, this was still far below 2018's annual net client cash inflow figure of GBP4.7 billion.
Miner Fresnillo fell 2.6% as its full-year gold production fell short of guidance.
For 2019 as a whole, Fresnillo's gold production fell 5.1% to 875,913 ounces. In December, it had set guidance at 885,000 ounces, from previous guidance of 880,000 ounces to 910,000 ounces.
For 2020, Fresnillo sees gold production between 815,000 ounces and 900,000 ounces.
Fresnillo's fourth-quarter silver production was 13.8 million ounces, 3.7% higher quarterly but down 11% on the prior year. The 2019 figure was 54.6 million ounces, 12% lower year-on-year.
Ryanair was up 1.3% after the budget carrier signed a new four-year pay agreement with Irish pilots following a dispute that led to strike action being threatened in August.
The deal with union Forsa will see Ryanair adopt a new pay structure and implement a fixed 5-4 shift pattern, consisting of five successive days of work followed by four days off.
Pendragon fell 2.4% after the car retailer warned profit for 2019 will be towards the bottom of current expectations, despite a "significantly" improved second half performance.
Pendragon said that despite weaker consumer demand, amid December's general election in the UK, performance recovered in the second half of 2019. The company said it benefited from closing 22 underperforming units, better inventory management, and cost cuts.
Pendragon explained: "Car Store, Leasing, Pinewood and US Motor divisions all performed in line with expectations, with the challenging consumer environment in the final quarter of the year principally impacting the Franchised UK Motor division. Accordingly, the group's underlying pretax profit for 2019 is expected to be around the bottom end of current expectations."
In forex, the euro stood at USD1.1001 at midday Wednesday, soft against USD1.1008 late Tuesday.
There was some upbeat consumer sentiment data out the eurozone on Wednesday.
Gfk reported green shoots of recovery for consumer sentiment in Germany at the start of the year.
For January, the economic expectations index improved somewhat to minus 3.7 from minus 4.4 in December. Income expectations rose to 44.6 from 35.0. The propensity to buy index was up at 55.5 from 52.5 the month before, and the index measuring the consumer climate was steady at 9.7.
Gfk said it forecasts a figure of 9.9 for its consumer climate index in February.
And in France, consumer confidence rebounded at the start of the year. INSEE's consumer confidence index rose to 104 in January from 102 in December, remaining above its long-term average of 100.
The pound was quoted at USD1.3012 at midday Wednesday, firm compared to USD1.2993 at the close on Tuesday with Thursday's Bank of England rate decision drawing into focus.
Against the yen, the dollar was trading at JPY109.06 compared to JPY109.15 late Tuesday.
Among commodities, Brent oil was priced at USD60.00 a barrel midday Wednesday, compared to USD59.92 late Tuesday, as oil firmed following a virus-driven slide earlier in the week.
The death toll in China has risen to 132, with confirmed infections surging to nearly 6,000. Four cases have been confirmed in Germany, making it the second European country to report cases, after France.
Gold was at USD1,571.07 an ounce, up from USD1,569.90 at the close on Tuesday.
By Lucy Heming; lucyheming@alliancenews.com
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Whitbread (WTB)
Fresnillo (FRES)
Quilter (QLT)