(Alliance News) - The FTSE 100 was higher on Wednesday with US-China trade progress hopes still alive after US President Donald Trump described a deal as in its "final throes".
The London large-cap index was up 21.78 points, or 0.3%, at 7,424.92 early Wednesday. The FTSE 250 was down 45.14 points, or 0.2%, at 20,819.78, and the AIM All-Share was down 0.1% at 914.76.
The Cboe UK 100 index was up 0.2% at 12,584.71. The Cboe UK 250 was down 0.1% at 18,701.16, and the Cboe UK Small Companies was flat at 11,315.59.
In European equities, the CAC 40 index in Paris was up 0.1% and the DAX 30 in Frankfurt also 0.1% higher in early trade.
Trade hopes were lifting stocks on Wednesday.
"According to US President [Donald] Trump a trade agreement with China is 'in the final throes' and things are 'going very well' but he was delaying finalising the deal so as to get better conditions for the US. Let us hope that Trump does not go too far and that the markets are rightly hoping that there will be a phase 1 deal even if it is still a way off," commented Antje Praefcke at Commerzbank.
Trump on Tuesday offered tepid support to Hong Kong pro-democracy protesters, saying he trusts President Xi Jinping to resolve the crisis, as US-Chinese trade talks enter their "final throes."
"We're with them," Trump said of the protesters who delivered a landslide victory for pro-democracy candidates in local elections and have battled police for weeks in street demonstrations.
But Trump immediately back-pedalled, emphasizing his close ties to Xi and efforts to secure a long-delayed resolution to the trade war between the world's two biggest economies. "We're in the final throes of a very important deal, I guess you could say one of the most important deals in trade ever," Trump said.
In Asia on Wednesday, the Japanese Nikkei 225 index closed up 0.3%. In China, the Shanghai Composite ended down 0.1%, while the Hang Seng index in Hong Kong finished 0.1% higher.
Amid broad-based gains on Wednesday, Rolls-Royce was at the bottom of the FTSE 100 after Morgan Stanley cut the engine maker to Equal Weight from Overweight. The stock was down 2.4%.
Future PLC shares slumped 11% to 1,400p after members of the management team and former employees sold a total of 3.1 million shares in the magazine publisher for 1,400p each. Future shares closed at 1,571.00p on Tuesday.
Mitchells & Butlers was down 2.3% after Berenberg cut the pub firm to Hold from Buy.
In other news from the sector, pub operator Marston's swung to an annual loss though said it is making good progress on reducing debt.
Revenue for the year to September 28 edged up to GBP1.17 billion from GBP1.14 billion the year before, but the company swung to a loss of GBP20.0 million from a GBP54.3 million profit. The firm's results were hit by a GBP43.4 million impairment of underperforming Destination and Premium properties, and GBP48.7 million loss reflecting interest rate swap valuation movements.
Pub like-for-like sales growth was 0.8%, while brewing volumes were 1% ahead of the prior year.
Net debt at the financial year end was GBP1.40 billion, up slightly from GBP1.39 billion a year ago, which the company said reflected investment in new sites.
However, Marston's said it is ahead of schedule in its aim to reduce net debt by GBP200 million by 2023, having reduced growth capital spend on new-build pubs and lodges in 2019. The firm has raised its pub disposal target for the 2020 financial year to GBP70 million from GBP40 million.
The stock was 0.8% higher in early trade.
In a US-heavy economic calendar on Wednesday ahead of the Thanksgiving holiday, personal consumption expenditures, alongside an estimate of third-quarter gross domestic product, are due at 1330 GMT.
Consensus, according to FXStreet, sees the latest estimate of third-quarter US GDP unchanged at 1.9% growth year-on-year.
"Today's US data may have some impact on markets but the main focus will continue to be on trade negotiation news. Meanwhile, sterling and UK government yields fell slightly as the election campaign continues," said Lloyds Banking.
At 2200 GMT, market research firm YouGov is expected to release a closely-watched MRP - multiple-level regression and post-stratification - poll about the December 12 general election. This UK poll correctly forecast a hung parliament in 2017.
The pound was quoted at USD1.2843 early Wednesday, flat compared to USD1.2845 late Tuesday.
By Lucy Heming; lucyheming@alliancenews.com
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Mitchells & Butlers (MAB)
Future (FUTR)
Rolls-Royce (RR.)
Marstons (MARS)
