ADVFN Morning London Market Report: Wednesday 11 September 2019

Share On Facebook

London stocks rose in early trade on Wednesday as worries about Sino-US trade relations eased and the focus shifted to this week’s European Central Bank meeting amid expectations of a rate cut and further stimulus.

© ADVFN
London open: Stocks rise as Sino-US worries ease; attention turns to ECB

At 0845 BST the FTSE 100 was up 0.5% at 7,306.31, while the pound was flat against the dollar and the euro at 1.2350 and 1.1185, respectively.

Sentiment got a boost after China’s finance ministry moved to exempt 16 types of US products from its additional retaliatory tariffs.

Spreadex analyst Connor Campbell said: “With bond yields starting to rise, the European markets were able to indulge in some solid optimism on Wednesday morning.

“However easy it is to by cynical about the shift in sentiment, the appearance of positive movement in regards to the US-China trade war – bolstered by the latter exempting 16 products produced by the former from a new round of tariffs next week – and hopes of averting a no-deal Brexit on October 31st have seemingly been cause enough for Europe to start a session with a smile on its face. That and the potential for some ECB stimulus on Thursday, a goodbye kiss from the departing Mario Draghi.”

Some analysts were sceptical, however. ING economist Iris Pang said that while the exemption could be seen as a gesture of sincerity towards the US ahead of negotiations in October, it is probably more a means of supporting the economy.

“There are still many uncertainties in the coming trade talks. An exemption list of just 16 items will not change China’s stance. We believe that China will stand very firm in the negotiations, which will be similar to the last round of talks,” she said. “Our house view is that the two countries are unlikely to reach a deal this year.”

In London equity markets, JD Sports Fashion racked up strong gains for the second day running following well-received interim results on Monday.

AstraZeneca was on the front foot as Citi reiterated its ‘buy’ rating on the stock, which has been its preferred global pharma major for the last five years.

Hedge fund manager Man Group rose as it announced that president and executive director Jonathan Sorrell is stepping down to take on a new role outside the company.

Intu Properties was the standout gainer on the FTSE 250.

Independent retail analyst Nick Bubb said: “Given the focus on the embattled shopping centre group Intu Properties, after the Sunday Times story that Orion Capital is interested in the value of its flagship Trafford Centre asset, it is interesting that another struggling shopping centre company, Capital & Regional (which owns seven shopping centres in Blackburn, Hemel Hempstead, Ilford, Luton, Maidstone, Walthamstow and Wood Green) has announced today that the big South African property company Growthpoint is planning to take a majority stake in the company (which is capitalised at £120m).”

On the downside, Galliford Try was weaker as it posted a 27% drop in full-year pre-tax profit to £104.7m, a day after it announced that it was back in talks with Bovis Homes over the sale of its housebuilding arm.

Sports Direct was in the red ahead of its annual general meeting and following a Sky News report late on Tuesday that the retailer has asked the big four accountants to pitch for its audit contract. Sports Direct revealed last month that Grant Thornton had quit as its auditor following repeated delays to the company’s results back in July.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20190916 11:06:28