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 Click Here for more FTSE 100 Charts.
FTSE 100
Index Chart
From Mar 2023 to Mar 2024 Click Here for more FTSE 100 Charts.