LONDON MARKETS: London Markets Advance On Fresh U.S.-China Trade Optimism
July 01 2019 - 08:13AM
Dow Jones News
By Dave Morris
London markets climbed after the U.S. and China seemed to be
heading back to the negotiating table to discuss trade.
How did markets perform?
The U.K.'s FTSE 100 jumped 1.3% to 7,524.3, after rising 0.3%
Friday.
The pound fell 0.4% to $1.2646, giving back Friday's 0.4% gain
almost exactly.
What's moving the markets?
Weekend reports from the G-20 summit in Osaka, Japan that U.S.
President Donald Trump and Chinese President Xi Jinping had agreed
to restart trade negotiations
(https://www.wsj.com/articles/trump-says-he-is-set-to-discuss-huawei-with-xi-11561769726?mod=hp_lead_pos1)
put investors in a bullish mood Monday. The relief rally lifted
European indexes, though they have retreated somewhat from their
highs.
Fresh data revealed the U.K.'s manufacturing sector had its
weakest month in over six years
(http://www.marketwatch.com/story/uk-manufacturing-sees-weakest-month-since-2013-2019-07-01)
in June as businesses used stocks of goods piled up ahead of an
anticipated, but now postponed Brexit.
The Eurozone's Markit PMI manufacturing survey also came in
lower than expected in June, at 47.6 versus a consensus prediction
of 47.8. Germany Markit PMI manufacturing (Final) PMI for June also
came in slightly under expectations. And in China, the Caixin
Purchasing Managers' Index (PMI) survey showed manufacturing in
June was still contracting, coming in at 49.4 versus a flat reading
of 50 predicted.
Which stocks are active?
British Airways parent International Consolidated Airlines Group
PLC (IAG.LN) was caught in the jetwash as Bernstein analysts
downgraded it and Deutsche Lufthansa (LHA.XE) from buy to market
perform. The analysts cited the risk that, as leisure travel slows
in Europe, corporate travel could follow suit. IAG shares shrank
1.3% while Deutsche Lufthansa moved down 0.6%.
Burberry Group PLC (BRBY.LN) was upgraded to neutral from sell
at Goldman Sachs, where analysts said weakness in the U.K. currency
could prove to be a significant boost. It also boasted an
attractive price to earnings radio, the analysts wrote. Shares
increased 3%.
(END) Dow Jones Newswires
July 01, 2019 07:58 ET (11:58 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Feb 2024 to Mar 2024
FTSE 100
Index Chart
From Mar 2023 to Mar 2024