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LONDON MARKET OPEN: Stocks Higher As Investors Await Brexit Vote

Tue, 15th Jan 2019 08:59

LONDON (Alliance News) - Stocks in London opened higher on Tuesday after China's latest economic stimulus measure provided investors with some relief.The main event of the day sees UK lawmakers voting on UK government's Brexit deal for leaving the European Union at Westminster.The FTSE 100 was up 28.38 points, or 0.4%, at 6,883.40, while the FTSE 250 was up 7.77 points at 18,425.35. The AIM All-Share was up 0.1% at 905.01.The Cboe UK 100 was up 0.8% at 11,726.42, while the Cboe UK 250 was 0.2% higher at 16,497.85 and the Cboe UK Small Companies down 0.1% at 11,152.46.In mainland Europe, the CAC 40 stock index in Paris was up 1.0%, while the DAX 30 in Frankfurt was 0.9% higher.The Japanese Nikkei 225 index closed up 1.0%, resuming trading after being closed on Monday. In China, the Shanghai Composite ended up 1.4%, while the Hang Seng index in Hong Kong closed up 2.0%.Markets in Asia were higher after Beijing said it would cut taxes "on a larger scale" to stabilize a slowing economy amid ongoing US-China trade war."The country's finance ministry announced it intends to cut VAT rates for certain industries, including manufacturers, while giving tax rebates to others. At the same time, the People's Bank of China claimed it would keep liquidity 'reasonably ample', a pincer attack of reassurances that, looking at the markets, seems, for now, to have worked," said Spreadex analyst Connor Campbell.On the London Stock Exchange, miners were among the blue chip risers following the latest China economic stimulus measures.Rio Tinto was up 1.9%, Anglo American up 1.7% Antofagasta, up 1.4% and Glencore up 1.3%. At the other end of the large cap index, Paddy Power Betfair was the worst performer, down 2.4%, adding to losses from Monday after the bookmaker was hit by a broker downgrade. The stock closed down 4.1% on Monday.Persimmon was down 1.0% despite the housebuilder stating that it expects annual profit to be modestly ahead of consensus. Persimmon expects total revenue for 2018 to come in at GBP3.74 billion, up from GBP3.60 billion a year ago.New housing revenue was predicted to rise by 4% to GBP3.55 billion from GBP3.24 billion, with the company's legal completions increasing by 406 new homes, or 3%, to 16,449 from 16.043. Average selling price per unit increased by 1% year-on-year to GBP215,560. Fellow housebuilders Taylor Wimpey, Barratt Developments and Berkeley Group were down 1.0%, 0.9% and 0.8%, respectively. "Unfortunately, the [housebuilding] sector is squarely in the firing line because of Brexit and the potential damage it could wreak on the UK economy. Quite apart from the possibility of the country spinning into an immediate economic downturn, any ongoing weakness in sterling could well lead to a further increase in the cost of materials. This comes in addition to a housing market which is slowly starting to come off the boil," said Interactive Investor's Richard Hunter. In the FTSE 250, Hays was the best performer, up 3.6% after the recruiter reported growth in net fees for the second quarter.For the quarter to December-end, net fees increased 8% on a headline basis and 9% on a like-for-like basis versus the prior year.At the other end of the midcap index, Provident Financial was the worst performer, down 19% after the doorstep lender said it expects 2018 profit to come in towards the lower end of market expectations, despite making "further good progress" in the last quarter.Currently, the market forecasts the lender's pretax profit to be between GBP151 million and GBP166 million. A year ago, the company reported a GBP123.0 million pretax loss.The group expects to report exceptional costs of GBP55 million in 2018 representing costs associated with the implementation of the home credit recovery plan, comprising intangible and tangible asset write offs, redundancy and consultancy costs, non-cash pension charges and others costs. The pound was flat, quoted at USD1.2885 against USD1.2890 at the London equities close Monday, ahead of the key vote in the House of Commons.UK Prime Minister Theresa May will make her final efforts Tuesday to persuade lawmakers to back the deal she has agreed for the UK to withdraw from the EU, as she faces widespread dissent from her own Conservatives and opposition parties.May has promised parliament a "meaningful vote" on the agreement, but she postponed it at the last minute in mid-December after admitting she faced a heavy defeat.Speculation has mounted over what could happen to the deal, to the Brexit process and to May's political career if, as seems likely, she loses the vote."The consensus view is that the agreement is likely to be rejected by the House of Commons, with some media sources reporting that the defeat could be in the order of two hundred votes. The government has indicated a willingness to make some further concessions to firm up support. Few observers seem to think that this will do anything more than reduce the scale of the loss. However, a relatively narrow defeat may still leave room for a slightly amended deal to pass on a second vote," analysts at Lloyds said. May conceded that the deal "is not perfect" and reflects compromise.Addressing lawmakers in Monday's debate, she rejected calls to delay the date of the UK leaving the EU, scheduled for March 29, to allow more time to build consensus or allow a second referendum."The number of members of parliament who vote against the Brexit deal is likely to be seen as an acid test of how hard it will be for Theresa May to get a revised deal through parliament on a second attempt. A number above 100 MPs would set an extremely high bar to get a modified version of the deal approved in the next 2 to 3 weeks," analysts at ING said.Should May lose the vote she is required to find an alternate solution and report back within three parliamentary sitting days.In the US on Monday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.4%, S&P 500 down 0.5% and Nasdaq Composite down 0.9%.Ahead in the US earnings calendar on Tuesday, banks JPMorgan Chase and Wells Fargo report earnings before the market open in New York.

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6 Aug 2018 12:00

LONDON MARKET MIDDAY: Weak Pound Offsets Tariff War For FTSE 100 Gain

LONDON (Alliance News) - Dipping in and out of the red on Monday amid renewed tariff talk, the FTSE 100 was managing to eke out some gains at midday as a weaker pound boosted the foreign-earner heavy

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2 Aug 2018 17:42

LONDON MARKET CLOSE: US-China Trade War, BoE Rate Hike Sink Stocks

LONDON (Alliance News) - Stocks in London closed sharply lower Thursday as the US ramped up tension in its ongoing trade war with China while sterling was boosted by the interest rate hike and by the

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2 Aug 2018 12:09

LONDON MARKET MIDDAY: Stocks Lower And Pound Flat After UK Rate Hike

LONDON (Alliance News) - Stock prices in London were lower midday Thursday amid renewed trade tensions between the US and China, while the pound was soft after Bank of England policy makers voted to

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2 Aug 2018 10:38

WINNERS & LOSERS SUMMARY: Ferrexpo Down On Rising Costs And Ore Prices

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Thursday.----------FTSE 100 - WINNERS----------Rolls-Royce

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2 Aug 2018 08:53

LONDON MARKET OPEN: Miners Send FTSE 100 Lower Amid Trade War Fears

LONDON (Alliance News) - Stocks in London opened lower on Thursday with heavyweight mining stocks weighing on the FTSE 100, as trade war fears continued to plague financial markets across Europe and

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1 Aug 2018 17:21

LONDON MARKET CLOSE: Next And Mining Stocks Send FTSE 100 Lower

LONDON (Alliance News) - Stocks in London ended sharply lower on Wednesday with Next and miners weighing on the FTSE 100, as the US ramped up its trade spat with China. The FTSE 100 index closed or a

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25 Jul 2018 08:17

TOP NEWS: Antofagasta Copper Output Falls In 1st Half, Retains Outlook

LONDON (Alliance News) - Antofagasta PLC on Wednesday retained its annual copper production guidance despite posting a 8.5% drop in first half-production due to lower mined grade.For the of

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4 Jul 2018 16:59

LONDON MARKET CLOSE: Stocks Lower As Clock Ticks Down On US Tariffs

LONDON (Alliance News) - Stocks in London ended lower on Wednesday as trade fears continued to simmer ahead of Friday's deadline, when US tariffs on Chinese goods are set to come into pound UK

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4 Jul 2018 12:04

LONDON MARKET MIDDAY: Hat-Trick For UK PMIs; Anglo American Gains

LONDON (Alliance News) - Investor sentiment was cautious on Wednesday with low volatility as US markets sat the session out for the Independence Day holiday.Mining stocks in London were broadly lower

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2 Jul 2018 16:55

LONDON MARKET CLOSE: Miners Slump On Commodity Prices, China Data

LONDON (Alliance News) - London stocks posted a poor start to the week on Monday, with miners dragging on the FTSE 100 following weaker-than-expected Chinese manufacturing data and a stronger dollar

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2 Jul 2018 10:58

WINNERS & LOSERS SUMMARY: Playtech Sinks On Asia Profit Warning

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Monday.----------FTSE 100 - WINNERS----------Micro Focus up

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2 Jul 2018 08:49

LONDON MARKET OPEN: Trade Concerns See Stocks Start Week Sharply Lower

LONDON (Alliance News) - Stocks in London opened firmly in the red on Monday with miners weighing on the large cap index, while the latest round of aggressive trade rhetoric from the US weighed on

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29 Jun 2018 17:09

LONDON MARKET CLOSE: Protracted Trade Worries See Stocks End Week Down

LONDON (Alliance News) - Stocks in London closed higher on Friday with miners and defence stocks driving gains, but ended a volatile week of trading lower amid lingering trade concerns. The FTSE 100

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20 Jun 2018 12:07

LONDON MARKET MIDDAY: Berkeley Misses Out As Risk-On Trade Returns

LONDON (Alliance News) - The return of risk-on trade was helping to lift London stocks at midday on Wednesday, as markets were given a breather from the ongoing trade spat between the US and and were

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15 Jun 2018 17:10

LONDON MARKET CLOSE: China-US Trade War And Oil Worries Trip Up Stocks

LONDON (Alliance News) - Stocks in London closed substantially lower as commodity prices fell due to the renewed trade war between China and the US, and uncertainty over the meeting of oil producing

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