London open: Stocks rise on positive US cues but trade worries remain
London stocks rose in early trade on Tuesday, taking their cue from a positive close in the US, although trade concerns were never far from investors' minds.
At 0830 BST, the FTSE 100 was up 0.4% to 7,578.49, while the pound was flat against the euro at 1.1294 and 0.1% firmer versus the dollar at 1.3162 as Prime Minister Theresa May conducts one-to-one meetings with her cabinet members to try to agree on a blueprint for the UK's future relations with the European Union.
Despite the upbeat tone in markets, escalating trade tensions remained in focus, particularly after it emerged that the Trump administration has recommended to the Federal Communications Commission that China Mobile not be allowed to enter the US telecommunications market.
Analyst Mike van Dulken at Accendo Markets, said: "This understandably adds to fears of a US-China trade war stepping up another level (£34bn US tariffs on Chinese goods due Friday), putting at risk the rare occurrence of synchronised global growth."
On the data front, the UK construction PMI survey for June is due at 0930 BST and is expected to be unchanged at 52.5.
In corporate news, healthcare services provider UDG Healthcare rose as it agreed to buy two US-based businesses - Create NYC and SmartAnalyst - for a combined consideration of up to $82.4m.
Paragon Banking Group was also in the black as it announced the acquisition of residential development finance provider Titlestone Property Finance for around £48m and a portfolio of development finance loans for approximately £226m.
On the downside, Glencore tumbled around 10% on news that it has received a subpoena from the US Department of Justice to produce documents and other records relating to money laundering statutes. The requested documents relate to its business in Nigeria, the Democratic Republic of Congo and Venezuela.
Banks slipped following reports they could face billions more in claims after a new PPI ruling, with Lloyds and RBS both lower.
Ryanair flew higher after the budget airline said traffic grew 7% in June to 12.6m customers, but Wizz Air was in the red after saying its passenger numbers were p 21.8% in June.
St Modwen Properties fell after posting a drop in interim pre-tax profit, although it did reiterate its expectations for the full year.
In broker note action, Hastings was cut to 'neutral' at JPMorgan, while Playtech was downgraded to 'equalweight' at Morgan Stanley.
Market Movers
FTSE 100 (UKX) 7,555.08 0.10%
FTSE 250 (MCX) 20,653.02 0.23%
techMARK (TASX) 3,503.05 0.23%
FTSE 100 - Risers
International Consolidated Airlines Group SA (CDI) (IAG) 662.20p 1.38%
BT Group (BT.A) 219.53p 1.23%
Smurfit Kappa Group (SKG) 3,084.00p 1.11%
Scottish Mortgage Inv Trust (SMT) 533.45p 1.03%
Imperial Brands (IMB) 2,855.00p 1.03%
AstraZeneca (AZN) 5,233.00p 0.98%
British American Tobacco (BATS) 3,856.50p 0.96%
GlaxoSmithKline (GSK) 1,531.00p 0.91%
Relx plc (REL) 1,625.50p 0.90%
BP (BP.) 578.20p 0.87%
FTSE 100 - Fallers
Glencore (GLEN) 316.75p -9.32%
Micro Focus International (MCRO) 1,301.00p -3.16%
Burberry Group (BRBY) 2,120.00p -1.30%
Evraz (EVR) 486.37p -1.10%
Royal Bank of Scotland Group (RBS) 250.10p -0.95%
Standard Life Aberdeen (SLA) 320.40p -0.90%
Berkeley Group Holdings (The) (BKG) 3,676.00p -0.89%
Lloyds Banking Group (LLOY) 61.83p -0.77%
Royal Mail (RMG) 494.50p -0.72%
Rolls-Royce Holdings (RR.) 968.80p -0.64%
FTSE 250 - Risers
Elementis (ELM) 254.00p 4.10%
Dechra Pharmaceuticals (DPH) 2,820.00p 3.30%
On The Beach Group (OTB) 527.00p 2.33%
Premier Oil (PMO) 121.30p 2.10%
Cairn Energy (CNE) 250.20p 1.87%
Paragon Banking Group (PAG) 479.00p 1.83%
Hikma Pharmaceuticals (HIK) 1,455.00p 1.71%
Tullow Oil (TLW) 239.20p 1.61%
Auto Trader Group (AUTO) 427.10p 1.42%
St. Modwen Properties (SMP) 426.40p 1.33%
FTSE 250 - Fallers
Hastings Group Holdings (HSTG) 241.00p -4.44%
Ferrexpo (FXPO) 175.35p -4.34%
Stagecoach Group (SGC) 144.30p -3.48%
VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 310.00p -2.82%
Playtech (PTEC) 540.80p -2.80%
BCA Marketplace (BCA) 220.00p -2.22%
Vietnam Enterprise Investments (DI) (VEIL) 408.00p -1.92%
IP Group (IPO) 127.60p -1.85%
Jardine Lloyd Thompson Group (JLT) 1,268.00p -1.25%
Inmarsat (ISAT) 537.99p -1.18%