ADVFN Morning London Market Report: Wednesday 27 November 2019

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London open: Stocks edge up amid trade optimism; Britvic loses its fizz

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London stocks edged higher in early trade on Wednesday, taking their cue from a solid session in the US, where equity markets closed at new all-time highs amid optimism over a China-US trade deal.

At 0830 GMT, the FTSE 100 was up 0.2% at 7,419.38, while the pound was down 0.2% against the dollar at 1.2842 and 0.1% lower versus the euro at 1.1666.

Neil Wilson, chief market analyst at Markets.com, said all eyes will be on the multilevel regression and post-stratification (MRP) poll from YouGov, which is due to be released at 2200 GMT.

“Given most traders will be in bed or the pub it could result in some whippy price action in GBP pairs. This detailed survey aims to offer a prediction for every seat (ex-Northern Ireland) and it correctly predicted the hung parliament in 2017.

“With the Tories apparently sitting pretty, this poll has the potential to change the narrative of the campaign if it shows a different outcome. Remember, a Tory majority tends to be near-term supportive of the pound as anything else is messy and uncertain.”

The positive tone in markets followed on from fresh highs on Wall Street thanks to a strong performance from retailers and after President Donald Trump said the US and China were in the “final throes of a very important deal” and that things were going “very well”.

Wilson said: “If I had a pound for every time we heard a phase one trade deal was close…but it is apparently still close, but is it very close like it was a few days earlier? Donald Trump says it’s close anyway and that’s all the excuse the bulls needed to get to new all-time highs on Tuesday.”

In equity markets, Russian steel maker Evraz was the standout gainer, while miners BHPAnglo American and Rio Tinto also rallied on trade hopes.

British American Tobacco ticked higher after saying it expects full-year adjusted operating profit and revenue growth to be in the upper half of its long-term guidance range, driven by strong results in the US.

Grainger was in the green as the residential landlord posted a 30% jump in full-year pre-tax profit as net rental income grew.

On the downside, shares of aerospace and defence giant Rolls-Royce fell after it was downgraded to ‘equalweight’ by Morgan Stanley, while Johnson Matthey retreated as Liberum cut its earnings outlook and price target.

Britvic lost its fizz after the drinks maker reported a decline in full-year pre-tax profit following a “challenging” year in France, while publisher Future was sharply lower after a discounted placing.

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