CMC Markets Share News (CMCX)

LONDON (Alliance News) - London's FTSE 100 index was struggling to capitalise on Wednesday's risk-on mood due to a stronger pound, while an annual earnings upgrade from Stagecoach was helping the FTSE 250 rise.The FTSE 100 index was up just 2.44 points at 7,393.56 Wednesday midday. The FTSE 250 was up 154.40 points, or 0.8%, at 19,483.67, while the AIM All-Share index was up 0.4% at 921.95.The Cboe UK 100 index was flat at 12,544.01. The Cboe UK 250 was up 1.0% at 17,461.16, while the Cboe UK Small Companies was flat at 11,174.42.In mainland Europe, the CAC 40 in Paris and the DAX 30 in Frankfurt were up 0.6% and 1.2% respectively at midday."Global markets are on the rise today, with renewed hopes over US-China trade talks boosting sentiment ahead of a potential finalised announcement," said IG senior market analyst Joshua Mahony. "With trade talks resuming today, a report from the FT signalled that almost all issues have been resolved, as final negotiations take place over the implementation and enforcement of the agreed trade pact."Stocks in the US are set to benefit from Wednesday's buoyant mood, with the Dow Jones called up 0.4%, the S&P 500 up 0.5% and the Nasdaq up 0.6%. However, the FTSE 100 was unable to fully benefit from Wednesday's positive investment mood as the pound strengthened on hopes of a softer Brexit. A higher pound reduces the value of the overseas earnings of the FTSE 100's multinational constituents."The pound has signalled a clear optimism over Theresa May's shift in tact yesterday, with the prime minister handing the levers of power to Jeremy Corbyn and away from the harder line Brexiteers in her own party," said IG's Mahony. Sterling was quoted at USD1.3182 at midday, up more than one-and-a-half cents from USD1.3030 late Tuesday. UK Prime Minister Theresa May on Tuesday said the UK needs an extension to Brexit talks which is "as short as possible" in order to leave the EU with a deal.Her short statement came as a cross-party group of senior MPs launched a bid to force the prime minister to stop a no-deal Brexit by tabling a bill requiring her to extend the negotiation process beyond April 12.May said she would try to strike a compromise deal with Labour leader Jeremy Corbyn but it would have to include her current deal.In response to May's move to include Corbyn in Brexit discussions, Wales minister and whip Nigel Adams resigned on Wednesday morning, calling her decision to reach out to the Labour leader a "grave error".The pound was strong on Wednesday despite dismal news for the UK service sector, a segment which accounts for around 80% of GDP.The IHS Markit/CIPS UK services purchasing managers' index registered 48.9 in March, down from 51.2 in February. This marks the first time the services PMI has dipped below the no-change mark of 50 since July 2016, the month after the UK voted to leave the European Union. "A drop in service sector activity indicates that UK GDP contracted in March, with the economy stalling over the first quarter as a whole and at risk of sliding into a deepening downturn in coming months," said Chris Williamson, chief business economist at IHS Markit.Williamson added: "A stalling of the economy in the first quarter will therefore likely turn into a downturn in the second quarter unless demand revives suddenly which, given the recent escalation of Brexit uncertainty, seems highly improbable,"This makes the current consensus forecast for the UK economy to grow 1.3% in 2019 "looking far too optimistic", the IHS Markit economist said.To come in the economic calendar on Wednesday are US MBA mortgage applications at 1200 BST, ADP employment at 1315 BST, and the US Markit services PMI at 1445 BST.Helping to lift the FTSE 250 on Wednesday was Stagecoach, up 5.6% after raising its annual earnings outlook following a strong performance in its UK Rail division. Among other divisions, revenue from regional UK bus operations rose 3.5% while London bus services generated 1.3% growth in like-for-like revenue.The rail performance was ahead of expectations, said Stagecoach, with continued good underlying revenue trends."We have continued to make progress in achieving favourable outcomes from concluding industry charges and contractual matters associated with the expired South West Trains franchise, resulting in additional profit being recognised in the current financial year," said Stagecoach.This has resulted in an increase in expectations for adjusted earnings per share, Stagecoach said, without specifying what it expects to generate in its current financial year.Just Group rose 3.7% after JPMorgan raised the retirement insurer to Neutral from Underweight. Meanwhile, Dechra Pharmaceuticals was down 1.5% after the veterinary products manufacturer said Chief Financial Officer Richard Cotton has resigned immediately for personal reasonsDechra said it has started the search process for a replacement and a further update on this will be made in due course. In the interim period, Paul Sandland, the company's EU finance director, will assume the role of acting CFO until a permanent successor to Cotton is appointed.Superdry shares tumbled 9.7% after the retailer's board resigned following the return of co-founder Julian Dunkerton. On Tuesday, shareholders narrowly voted in favour of re-electing Superdry co-founder Dunkerton, with 51.15% for and 48.85% votes against. Peter Williams, formerly chair of online fashion retailer boohoo, was voted onto the board by the same margin.Dunkerton has now taken up the role of interim CEO at Superdry, while Williams has become chair.Following the vote, former Superdry chair Peter Bamford, CEO Euan Sutherland and CFO Ed Barker all stepped down with immediate effect. In addition, Non-Executive Directors Dennis Millard, Minnow Powell, Sarah Wood and John Smith will leave their roles on July 1 after serving a three-month notice period.CMC Markets was down 3.0% after it issued a profit warning and said Chief Operating & Financial Offer Grant Foley will be leaving. Foley is expected to stay with the company for the next six months to "ensure a smooth transition". During that period, CMC will "run a rigorous process" to find a replacement, it said.Meanwhile, CMC expects its CFD and spread-betting revenue in the year to March 31 to be 37% lower than the year before, at about GBP110 million. The company said it expects to report net operating income of about GBP131 million."Overall performance in financial 2019 has been impacted by reduced client trading activity following the implementation of the European Securities & Markets Authority intervention measures on August 1, compounded by challenging market conditions during much of the fourth quarter," CMC said in a statement.