Bulletin
Investor Alert

London Markets Archives | Email alerts

July 1, 2019, 7:59 a.m. EDT

London markets advance on fresh U.S.-China trade optimism

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    FTSE 100 Index (UKX)
  • X
    British Pound (GBPUSD)
  • X
    International Consolidated Airlines Group S.A. (IAG)

or Cancel Already have a watchlist? Log In

By Dave Morris


Getty Images

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%.

/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,403.92
-32.72 -0.44%
Volume: 838,159
Feb. 21, 2020 4:59p
loading...
/zigman2/quotes/210561263/realtime/sampled
US : Tullett Prebon
1.2967
+0.0004 +0.0309%
Volume: 0.0000
Feb. 21, 2020 4:59p
loading...
/zigman2/quotes/208070069/delayed
UK : U.K.: London
623.00 p
-8.80 -1.39%
Volume: 7.73M
Feb. 21, 2020 4:35p
P/E Ratio
6.37
Dividend Yield
3.37%
Market Cap
£12.54 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/205496028/delayed
DE : Germany: Frankfurt
14.78
-0.27 -1.79%
Volume: 34,285
Feb. 21, 2020 8:58p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€264,465
loading...
/zigman2/quotes/205386705/delayed
UK : U.K.: London
1,870.50 p
-49.50 -2.58%
Volume: 2.00M
Feb. 21, 2020 4:35p
P/E Ratio
21.61
Dividend Yield
2.29%
Market Cap
£7.55 billion
Rev. per Employee
N/A
loading...

This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

World News from MarketWatch

Link to MarketWatch's Slice.