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 /zigman2/quotes/210598409/delayed UK:UKX -0.44% jumped 1.3% to 7,524.3, after rising 0.3% Friday.
The pound /zigman2/quotes/210561263/realtime/sampled GBPUSD +0.0309% 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 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 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 /zigman2/quotes/208070069/delayed UK:IAG -1.39% was caught in the jetwash as Bernstein analysts downgraded it and Deutsche Lufthansa /zigman2/quotes/205496028/delayed DE:LHA -1.79% 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 /zigman2/quotes/205386705/delayed UK:BRBY -2.58% 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%.