London open: Sino-US trade progress boosts stocks

London stocks rose in early trade on Tuesday as investors welcomed signs of progress in Sino-US trade relations.

At 0855 BST, the FTSE 100 was up 0.8% at 6,152.80.

US trade Representative Robert Lighthizer said in a statement that the two countries had discussed the phase one trade deal in a call, that there had been progress and that both sides are committed to its success. Meanwhile, China said they had agreed "to create conditions and atmosphere to continue pushing forward the implementation of the trade deal".

Spreadex analyst Connor Campbell said: "Following Monday’s blood plasma injection, the markets got another boost this Tuesday as the USA and China both appeared to re-up their ‘phase one’ trade deal promises.

"That the superpowers can still strike a cordial note, despite the numerous ongoing issues they have had over the past few months - ‘China virus’/Huawei/TikTok and WeChat bans/the consulate debacle/sanctions on citizens from both nations - is reassuring for investors, keeping the cold war at a more comfortable temperature."

In equity markets, airline stocks flew higher amid growing hopes of a Covid-19 treatment, with British Airways and Iberia parent IAG and budget airline easyJet firmly on the front foot.

Elsewhere, software group Aveva gained after agreeing to buy US-based real-time data software maker OSIsoft for $5bn including debt.

AstraZeneca rose after saying the first participants in a UK Phase I trial of a combination of two monoclonal antibodies to prevent and treat Covid-19 have been dosed. The trial will evaluate the safety, tolerability and pharmacokinetics of the drug, called AZD7442 and will include up to 48 healthy participants aged 18 to 55 years.

On the downside, James Fisher fell after cutting its interim dividend by 29% as first-half profit declined, although the company did say it expects trading to improve.

Market Movers

FTSE 100 (UKX) 6,152.80 0.79%
FTSE 250 (MCX) 17,747.62 0.35%
techMARK (TASX) 3,862.14 0.78%

FTSE 100 - Risers

International Consolidated Airlines Group SA (CDI) (IAG) 206.90p 4.87%
Melrose Industries (MRO) 106.85p 3.04%
Rolls-Royce Holdings (RR.) 268.60p 2.72%
GVC Holdings (GVC) 791.40p 2.62%
Burberry Group (BRBY) 1,437.50p 2.42%
M&G (MNG) 176.50p 2.29%
InterContinental Hotels Group (IHG) 4,393.00p 2.09%
Whitbread (WTB) 2,417.00p 1.98%
Prudential (PRU) 1,244.50p 1.63%
WPP (WPP) 631.40p 1.61%

FTSE 100 - Fallers

Just Eat Takeaway.Com N.V. (CDI) (JET) 8,696.00p -1.29%
Persimmon (PSN) 2,659.00p -1.08%
Berkeley Group Holdings (The) (BKG) 4,538.00p -0.48%
Barratt Developments (BDEV) 523.60p -0.46%
Taylor Wimpey (TW.) 121.00p -0.45%
Rio Tinto (RIO) 4,713.00p -0.37%
Hargreaves Lansdown (HL.) 1,681.00p -0.24%
Smurfit Kappa Group (SKG) 2,770.00p -0.14%
London Stock Exchange Group (LSE) 8,872.00p -0.11%
SEGRO (SGRO) 963.00p -0.10%

FTSE 250 - Risers

easyJet (EZJ) 625.60p 4.90%
Apax Global Alpha Limited (APAX) 168.00p 4.74%
Cineworld Group (CINE) 57.08p 4.47%
Virgin Money UK (VMUK) 94.00p 4.07%
Carnival (CCL) 1,022.50p 3.79%
Micro Focus International (MCRO) 314.50p 3.35%
Playtech (PTEC) 366.60p 3.27%
Equiniti Group (EQN) 114.80p 3.24%
Go-Ahead Group (GOG) 666.00p 2.46%
OneSavings Bank (OSB) 264.00p 2.25%

FTSE 250 - Fallers

Fisher (James) & Sons (FSJ) 1,132.00p -7.97%
Oxford Instruments (OXIG) 1,592.00p -2.33%
Bellway (BWY) 2,334.00p -1.89%
Safestore Holdings (SAFE) 758.00p -1.56%
Savills (SVS) 804.50p -1.47%
Contour Global (GLO) 205.00p -1.44%
Telecom Plus (TEP) 1,408.00p -1.40%
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,696.00p -1.29%
Capital & Counties Properties (CAPC) 124.40p -1.27%
Marshalls (MSLH) 639.50p -1.24%