Advertisement
UK markets close in 42 minutes
  • FTSE 100

    7,967.59
    +35.61 (+0.45%)
     
  • FTSE 250

    19,897.12
    +86.46 (+0.44%)
     
  • AIM

    744.02
    +1.91 (+0.26%)
     
  • GBP/EUR

    1.1687
    +0.0018 (+0.15%)
     
  • GBP/USD

    1.2629
    -0.0009 (-0.07%)
     
  • Bitcoin GBP

    56,422.27
    +1,777.88 (+3.25%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,252.99
    +4.50 (+0.09%)
     
  • DOW

    39,771.59
    +11.51 (+0.03%)
     
  • CRUDE OIL

    82.47
    +1.12 (+1.38%)
     
  • GOLD FUTURES

    2,234.20
    +21.50 (+0.97%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • DAX

    18,507.51
    +30.42 (+0.16%)
     
  • CAC 40

    8,216.62
    +11.81 (+0.14%)
     

UPDATE 2-FTSE 100 swells as trade hopes offset slew of profit alerts

* FTSE 100 up 1%, FTSE 250 up 0.5%

* Easing trade sentiment lifts mood

* Pearson tanks after profit warning

* Imperial Brands falls after forecast cut, drags BAT

* IAG down after saying pilot strikes to hit profit (Adds news items, analyst comments, updates share prices)

By Shashwat Awasthi and Muvija M

Sept 26 (Reuters) - London's FTSE 100 surged more than 1% on Thursday as signals from the United States and China that their trade dispute could soon be put to bed did enough to counteract a trio of profit warnings from blue-chip components.

The FTSE 100 added 1.1%, rebounding after four straight sessions in the red, after China's commerce ministry said it was is in close communication with Washington over next month's trade talks, and President Donald Trump said overnight that a deal could be struck soon.

ADVERTISEMENT

Gains were shared among oil majors , financials and miners, which, along with a dip in sterling, put the index on track for its best day in more than five weeks and helped it outperform the broader European index.

China's conciliatory statement also offset losses in tobacco firm Imperial Brands, education company Pearson and British Airways owner IAG, all of which warned on results and together wiped off more than roughly 4 billion pounds in market value from the index by 0849 GMT.

"Following yesterday's positive session in the U.S., there seems to be a bit more optimism, but it's pretty fragile," Markets.com analyst Neil Wilson said. Spreadex analyst Connor Campbell said Trump's trade remarks were outweighing any other "destabilising factors" surrounding his presidency.

The mid-cap FTSE 250 rose after three consecutive sessions of losses but was only up 0.5% by 0904 GMT, with gains kept in check by a weaker sterling as the Brexit malaise showed no signs of easing up.

"A testy session for MPs (members of parliament) yesterday sets the tone for the run in to the Brexit deadline. No-deal remains on the table," Markets.com analyst Neil Wilson said.

TRIFECTA OF PROFIT ALERTS

Positive comments around global trade helped the blue-chip index recover from earlier losses that were partly triggered by a drop in tobacco stocks after blu e-cigarette maker Imperial Brands cut its annual sales and profit view.

Imperial's stock tumbled more than 10% to its lowest since January 2011 and was on track for its biggest one-day drop ever. Shares of rival BAT shed 2.2%.

"...Hopes had been high that the vaping segment would drive growth as traditional tobacco declines. Increased regulatory scrutiny and retailers reluctant to stock vaping products is seriously undermining that hope," Hargreaves Lansdown analysts said.

Pearson slid almost 18% to its lowest since March 2018 after saying full-year profit would be at the bottom of its guided range, while IAG also dipped 3% after blaming pilot strikes for an expected 215 million euros shortfall in annual profit.

Among smaller stocks, inkjet printhead maker Xaar tanked almost 40% after half-year results. Its shares have already lost more than two-thirds in value this year. (Reporting by Shashwat Awasthi in Bengaluru; Editing by Toby Chopra and Peter Graff)