Last checked at 
(Alliance News) - Stock prices in London are seen opening higher on Tuesday following a strong finish in the US on Monday, amid signs the increase in new Covid-19 cases is slowing globally.
In the US epicentre New York, Governor Andrew Cuomo said that for the first time the growth rate there was flat, while on Tuesday, China - where the disease first emerged late last year - reported no new deaths for the first time since January.
However, in the UK, Dominic Raab will take charge of the government's response to the coronavirus crisis after the prime minister was transferred to intensive care. Boris Johnson was admitted to intensive care on Monday after his Covid-19 symptoms worsened during the afternoon.
In early UK company news, contract-for-difference provider Plus500 reported a stellar first-quarter performance. Cinema chain operator Cineworld suspended payment of its 2019 fourth-quarter dividend in a bid to preserve cash. Books and stationery retailer WH Smith announced the results of Monday's share placing.
IG futures indicate the FTSE 100 index is to open 11.31 points higher at 5,593.70. The blue-chip index closed up 166.89 points, or 3.1%, at 5,582.39 on Monday.
Plus500 said it delivered an "exceptional" first-quarter performance, which reflected significantly increased levels of customer trading activity, with strong performance across all key financial metrics.
For the quarter ended March 31, revenue skyrocketed to USD316.6 million from USD53.9 million in the first quarter of 2019. In addition, new customers rose to 82,951 from 21,306 last year.
Plus500 said the first days of the second quarter have seen continued heightened levels of volatility, but acknowledged that it is difficult to forecast whether this would persist.
"As a result of the exceptional first-quarter performance, revenue and profitability for the full year are expected to be substantially ahead of current consensus expectations. However, as we remain at an early stage in the financial year, and there are global markets uncertainties as well as ongoing regulatory changes, it remains difficult to predict the outcome for the full year," said Chief Executive Asaf Elimelech.
Faring less well in the virus crisis, Cineworld Group said every effort is being made to protect the business from the effect of cinema closures, with the UK and elsewhere still under lockdown.
In addition, Cineworld said it would "monitor progress" of its proposed acquisition of Canadian peer Cineplex.
The movie theatre operator highlighted that its entire estate of 787 cinemas spanning 10 countries has been closed as a result of Covid-19.
Cineworld said cost-saving efforts include discussions with landlords, film studios and major suppliers, as well as curtailing all capital expenditure not immediately necessary.
Cineworld also has decided to suspend the payment of the 2019 fourth-quarter dividend of 4.25 cents per share and upcoming 2020 quarterly dividends. The company said it will keep this position under review.
"Until there is greater clarity on the prevailing circumstances and given the impact of Covid-19 on many of our employees, the executive directors have voluntarily agreed to defer payment of their full salaries and any bonuses to which they are entitled. Similarly, during this period the non-executive directors will defer their fees," Cineworld said.
WH Smith said it has raised GBP165.9 million via a share placing. The retailer placed 15.6 million shares at 1,050 pence each, which represents 13.7% of its entire share capital. The placing price represents a discount of 4.0% to the closing share price of 1,094p on Monday.
In addition, WH Smith said it is discussing its liquidity requirements with its revolving credit facility banks.
In the US on Monday, Wall Street ended sharply higher, with the Dow Jones Industrial Average up 7.7%, S&P 500 up 7.0% and Nasdaq Composite up 7.3%.
"This surge into the US close saw Asia markets pick up the baton, and this looks set to carry over into Europe this morning, with another positive open, as hopes rise that countries in Europe are starting to win the fight against the virus," said CMC Markets analyst Michael Hewson.
The Japanese Nikkei 225 index closed up 1.0%. In China, the Shanghai Composite is up 1.8%, while the Hang Seng index in Hong Kong is up 0.6%. Financial markets in Shanghai reopened on Tuesday after being closed on Monday for a holiday.
The pound was quoted at USD1.2231 early Tuesday, down from USD1.2292 at the London equities close on Monday.
Prime Minister Johnson was battling the coronavirus in intensive care Tuesday, the highest-profile case in the pandemic that continued to chalk up new death toll milestones in the US and Europe.
Johnson was moved to intensive care at about 7pm on Monday and was understood to be conscious but moved as a precaution should he require a ventilator. The 55-year-old had been admitted to St Thomas' Hospital in central London on Sunday evening after testing positive for coronavirus 10 days previously.
The euro was quoted at USD1.0791 early Tuesday, down from USD1.0810 late Monday.
EU finance ministers are under pressure to deliver proposals for further fiscal measures to counter the economic crisis triggered by the Covid-19 pandemic, as they head into talks on Tuesday.
There is growing optimism that eurozone finance ministers will approve new funding to the countries hurt by the coronavirus pandemic, but division over so-called 'corona bonds' is likely to remain.
Against the yen, the dollar was quoted at JPY109.22, firm from JPY109.06.
Oil was at USD33.24 a barrel Tuesday morning, up from USD32.26 late Monday. Gold was trading at USD1,659.51 an ounce Tuesday morning, up from USD1,645.22 late Monday.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
