LONDON MARKET OPEN: Stocks Edge Higher; Ryanair Sounds Brexit Alarm

LONDON (Alliance News) - Stock prices in London opened marginally higher on Monday after quiet trading in Asia overnight, while Ryanair fell after posting a loss in the third quarter and issuing a strident warning about Brexit. The FTSE 100 index was up 11.15 points, or 0.2%, at 7,031.37 in early trade. The FTSE 250 was 17.12 points higher, or 0.1%, at 18,828.49. The AIM All-Share was flat at 921.42.The Cboe UK 100 was up 0.2% at 11,941.96, while the Cboe UK 250 was up 0.1% at 16,815.87. The Cboe UK Small Companies also was up 0.1%, at 11,287.85.In mainland Europe, the CAC 40 in Paris and the DAX 30 in Frankfurt were down 0.3% and 0.2%, respectively. On the London Stock Exchange, GVC Holdings was the best blue-chip performer, up 1.8% after Jefferies started coverage on the sports betting and gaming company with a Buy rating.WM Morrison Supermarkets was up 1.3% after Citigroup raised the supermarket chain to Neutral from Sell.At the other end of the large cap index, miners were lower. Rio Tinto was down 1.3%, Glencore down 0.9%, Antofagasta down 1.0% and Anglo American down 0.7%. BHP Group was off 1.2% after being cut to Underweight from Neutral by JPMorgan. "Despite positive developments on the trade front, with US and China resuming dialogue, slowing Chinese demand appears to have taken its toll on the region and remains a cause of concern going forward," said analysts at Oxford Economics.Chinese manufacturing activity shrunk to a nearly three-year low in January as underlying trends in production weakened and export sales increased, according to a report that was released on Friday. Survey data from IHS Markit showed the headline seasonally adjusted Caixin Factory Purchasing Managers' Index, or PMI, fell to 48.3 from 49.7 in December. The reading was the lowest since February 2016. Any reading below 50 suggests contraction in the sector.In the FTSE 250, William Hill was up 3.3% on Monday, after Jefferies started coverage on the bookmaker with a Buy rating and Shore Capital raised the stock to Buy from Hold. At the other end of the midcap index, Ferrexpo was the worst performer, down 6.0% after the iron pellet producer said it is conducting a comprehensive review of funds paid to a Ukrainian charity as part of its corporate social responsibility programme, after uncovering issues with the charity's accounts.Ferrexpo explained its auditor Deloitte has received bank statements directly from the charity Blooming Land in order to verify the use of contributions by Ferrexpo.The bank statements from the charity - which is entirely separately managed from Ferrexpo - revealed "as yet unexplained discrepancies". Consequently, Ferrexpo said it has decided to undertake a "comprehensive independent review" and is currently scoping the work.In the first half of 2018, Ferrexpo had contributed USD9.5 million to the medical and social services charity. It has not made any further donations since May 2018.Elsewhere, Ryanair Holdings was down 3.8%. The budget airline said it will make changes to its corporate structure after swinging to a third-quarter loss and warning of lower annual profit.The Irish airline said that over the next 12 months it will move to a group structure not dissimilar to that of rival International Consolidated Airlines Group, owner of British Airways and Spain's Iberia.Meanwhile, the airline said its third-quarter results were disappointing, with the group swinging to a EUR83.6 million pretax loss from a EUR112.9 million profit in the comparative period a year ago.In addition, Ryanair also raised concerns over the UK crashing out of the European Union without a trade deal. "The risk of a no deal Brexit remains worryingly high. While we hope that common sense will prevail, and lead to either a delay in Brexit, or agreement on the 21 month transition deal currently on the table, we have taken all necessary steps to protect Ryanair's business in a no-deal environment. We have now obtained a UK AOC to protect our 3 domestic UK routes, and we will place restrictions on the voting rights and share sales of non-EU shareholders for a period of time to ensure that Ryanair remains at all times an EU owned and EU controlled airline, even if the UK exits the EU without a deal," said Chief Executive Officer Michael O'Leary. Peer easyJet was the worst performer in the FTSE 100, down 1.9%. The Japanese Nikkei 225 index closed up 0.5% while the Hang Seng index in Hong Kong closed up 0.2%. Financial markets in China are closed on Monday for Chinese New Year's Eve and will remain closed for the rest of the week for Chinese New Year. Hong Kong's financial markets were open for a half day on Monday and will be closed Tuesday to Thursday for the Lunar New Year holiday. The Hang Seng index ended Monday up 0.2%.The pound was marginally lower, quoted at USD1.3084 early Monday from USD1.3099 at the London equities close Friday.UK Prime Minister Theresa May will invite rebel Tory members of Parliament into the heart of government on Monday to thrash out changes to her Brexit deal she hopes can overcome massive opposition in Brussels and Westminster.Hardline eurosceptics in the European Research Group and Remain-supporting former ministers will form the Alternative Arrangements Working Group, which Downing Street said would meet "regularly" with Brexit Secretary Stephen Barclay and senior officials.ERG deputy chairman Steve Baker, former Northern Ireland secretary Owen Paterson and Yeovil MP Marcus Fysh will join forces with former education secretary Nicky Morgan and ex-cabinet office minister Damian Green to examine the feasibility of the so-called Malthouse Compromise."There still appears little chance of the EU budging from its refusal to reopen the withdrawal agreement to drop the Irish border backstop. But the Political Declaration remains open for modification. And with the Government offering Labour MPs financial inducements to benefit their constituencies, and conducting discussions on safeguards and possible enhancements to workers' rights, there remains the possibility that a majority in Parliament could eventually be found for a deliverable Brexit," said analysts at Daiwa Capital Markets. The economic events calendar has UK construction PMI at 0930 GMT. There also are Italy inflation readings and eurozone producer prices at 1000 GMT. In the US earnings calendar on Monday, Google parent Alphabet will report earnings after the market close in New York.