Left Menu
Development News Edition

UPDATE 2-Prospect of easing trade tensions, weaker pound lift FTSE 100

Reuters | Updated: 15-05-2019 22:12 IST | Created: 15-05-2019 22:12 IST
UPDATE 2-Prospect of easing trade tensions, weaker pound lift FTSE 100
Hopes that the United States' trade tensions with China and Europe will dissipate, combined with a weaker pound, lifted Britain's main index higher on Wednesday, as a slew of earnings reports also drove share moves.

The FTSE 100 advanced 0.8% and outperformed its European peers. The FTSE 250 was roughly flat. Markets were initially upbeat after U.S. President Donald Trump said talks between Beijing and Washington had not collapsed, terming the Sino-U.S. conflict as "a little squabble".

Trump administration officials later said the President was expected to delay a decision on imposing tariffs on imported cars and parts by up to six months, further bolstering investor sentiment. "This may be a case of delaying the inevitable, but given that the U.S. is already at odds with China and Iran, the reasoning appears to be not to be fighting too many battles at once," CMC Markets analyst Michael Hewson said.

Asia-focused HSBC provided the biggest boost to the main index, while exporter stocks also supported it, benefiting from a drop in sterling as Brexit jitters resurfaced. Sterling fell to a three-month low, with Prime Minister Theresa May expected to once again fail in getting her thrice-rejected Brexit deal approved.

On an earnings-heavy day, Compass Group was among the top blue-chip gainers. The world's biggest catering company rose 2.9% after raising its forecast for annual organic revenue growth. But home improvement retailer Kingfisher declined 3.6% after lower first-quarter sales in France, its second-biggest market.

SSE and National Grid fell 2.5% and 0.9% respectively. Britain's opposition Labour Party published plans to re-nationalise the country's energy networks, prompting utilities to warn of damage to investment, high taxpayer costs and a slower transition to green energy. On the mid-cap index, Metro Bank, which has seen volatile trading in recent months after disclosing an accounting error, gained 15% with details of fresh funding from new and existing investors awaited.

Provident Financial skidded 6.5%. The company has been subject to a hostile takeover by smaller rival Non-Standard Finance, which said after markets shut that it would go ahead with its 1.3 billion pound takeover for the larger subprime lender. (Reporting by Shashwat Awasthi and Muvija M, additional reporting by Samantha Machado in Bengaluru; Editing by Alison Williams)



Domestic seafood trade in focus as COVID-19 changes market dynamics

As predicted earlier in a report titled Seafood industry post-COVID 19 An overhaul to trigger the growth of small fisheries, one of the changes going ahead would be increased focus on domestic seafood trade, driven by falling exports and su...

Migration post-COVID 19: Taking cues from the past to rebuild economies

Migrants are an irreplaceable part of even the essential workforce of developed countries and are on the frontline in the fight against the crisis, making an immeasurable contribution to saving the lives of natives with voting rights....

Socialization Post-COVID-19: Local associations and online groups to play crucial role

Though every age group is suffering due to the global lockdown caused by the ensuing COVID-19 pandemic, the challenges before adolescents are unique. Their social space has shrunk drastically, besides, they have become highly vulnerable to ...

Pharma post-COVID 19: Reducing political clout can alter business models

Powerful governments that have historically supported the pharma industry in enforcing global intellectual property rules are changing course and introducing legislation that can override normal patent rights during emergencies....


Latest News

Italian gamers win UEFA's eEuro-2020

Italy, at their consoles rather than on the pitch, emerged the virtual champions of UEFAs euro-2020. The Nazionale beat Serbia 3-1 in the best-of-five final, the decisive goal coming in the 90th minute of the fourth match from gamer Lorenzo...

Reuters Entertainment News Summary

Following is a summary of current entertainment news briefs. Venice Film Festival will go ahead in September - Veneto governorThe Venice Film Festival will go ahead as scheduled at the beginning of September, Luca Zaia, the governor of the ...

Reuters Health News Summary

Following is a summary of current health news briefs. France has lowest daily rise in new coronavirus cases and deaths since lockdownFrench authorities reported the smallest daily rise in new coronavirus cases and deaths on Sunday since bef...

COVID-19 lockdown: Domestic flights resume after two months

Domestic passenger flights resumed in India after a gap of two months and the country will see around 600 services on Monday, officials said. The Delhi airport saw its first departure at 4.45 am to Pune while Mumbai airports first departure...

Give Feedback