LONDON MARKETS: FTSE 100 Rises As U.S. And China Move Closer To A Trade Deal
04 März 2019 - 2:37PM
Dow Jones News
By Emily Horton
Ted Baker, Daily Mail among the big movers
London's markets climbed on Monday, with investor optimism
driven by reports a trade deal between China and the U.S. could be
reached soon.
How are markets performing?
The FTSE 100 rose by 0.7% to 7,156.87, after finishing the week
down 1% on Friday.
The pound climbed to $1.3204 from $1.3205 in New York late
Friday.
"The pound looks bearish on the technical charts but we know
that politics drive sterling these days. Even though the UK
currency has seen a correction from the $1.3350 highs over the
previous week, recent news suggests that several members of PM
May's "internal opposition" are prepared to agree terms and support
her efforts to deliver Brexit," Konstantinos Anthis, head of
research at ADSS, said in a note to clients.
What's driving the markets?
Articles from Bloomberg and The Wall Street Journal said China
was offering to ease tariffs and other restrictions on U.S. farms,
chemical, auto and other products
(http://www.marketwatch.com/story/us-china-in-final-stages-of-trade-talks-with-formal-deal-possible-by-months-end-2019-03-03),
while Washington is reportedly removing most sanctions on Chinese
imports, according to an unidentified source. Reports suggest a
deal could be signed later this month.
"A positive outcome would be a major catalyst for global
markets; indeed, stocks are rallying in many parts of the world on
Monday following media reports that the two leaders were preparing
to meet," said Russ Mould, investment director at AJ Bell, in a
note to clients.
In Brexit news, U.K. Prime Minister Theresa May has launched a
new GBP1.6bn fund to help the Britain's poorest towns
(http://www.marketwatch.com/story/brexit-brief-may-accused-of-bribing-mps-with-16bn-fund-for-deprived-towns-2019-03-04)
-- many of which voted to leave the EU -- in what is being viewed
as bid to get members of the Labour Party to support her Brexit
deal.
What stocks are active?
Heavyweight tobacco company British American Tobacco PLC
(BATS.LN) shook off earlier losses to rise 1.1% after it criticized
the Quebec Court of Appeal
(http://www.marketwatch.com/story/british-american-tobacco-critical-of-canada-ruling-2019-03-04)for
not overturning a decision against its Canadian subsidiary.
Meanwhile, British equipment manufacturer Rotork PLC (ROR.LN)
lost 8% loss after the board of the FTSE 250 company announced it
was planning for slower growth in 2019
(http://www.marketwatch.com/story/rotork-profit-up-but-sees-slower-growth-for-2019-2019-03-04).
Away from the main index, Daily Mail & General Trust PLC
(DMGT.LN) gained 5% after the group announced it will return $1.19
billion excess cash to shareholders
(http://www.marketwatch.com/story/daily-mail-to-return-119-billion-to-shareholders-2019-03-04).
And shares of retailer Ted Baker PLC (TED.LN) shot up nearly 6%
after the company said Chief Executive Officer Ray Kelvin has
resigned with immediate effect
(http://otp.investis.com/clients/uk/ted_baker/rns/regulatory-story.aspx?cid=898&newsid=1237262).
Kelvin took a voluntary leave of absence in December 2018 over
allegations of misconduct. Acting CEO Lindsay Page will continue in
the role, the company said.
(END) Dow Jones Newswires
March 04, 2019 08:22 ET (13:22 GMT)
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