🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

FTSE 100 gains on U.S.-China trade optimism

Published 25/08/2020, 08:16
© Reuters. FILE PHOTO: Signage is seen outside the entrance of the London Stock Exchange in London
UK100
-
HSBA
-
AZN
-
STAN
-
AVV
-
FTMC
-
FTNMX551030
-
DFSD
-

By Sagarika Jaisinghani

(Reuters) - The FTSE 100 rose for a second straight session on Tuesday as a pledge by Washington and Beijing to stand by their Phase-1 trade pact lifted global sentiment, while technology firm Aveva jumped after signing a $5 billion takeover deal.

The export-heavy FTSE 100 (FTSE) gained 0.6% and the mid-cap FTSE 250 (FTMC) 0.3% as a phone call between U.S. and Chinese trade officials calmed jitters the deal could be on shaky ground due to simmering tensions between the world's top two economies.

AstraZeneca Plc (L:AZN) rose 0.9% after launching a trial for an antibody-based treatment for COVID-19.

The drugmaker had logged its best session in a week on Monday as a report said the U.S. government was considering fast-tracking its experimental vaccine, already among the most advanced vaccine candidates.

"It seems investors are ignoring that the virus continues to spread fast around the globe," said Charalambos Pissouros, a market analyst at JFD Group.

"Perhaps the market believes that we have more cases due to more tests being conducted, and/or it may be looking at the better situation in terms of hospitalisation and death toll."

Global equity markets have already retraced most of their coronavirus-driven losses, powered by trillions of dollars in stimulus. The UK's FTSE 100 is on course for its best month since April 2018 even as concerns linger about a choppy economic recovery after a record contraction in the second quarter.

On Tuesday, debt collector Arrow Global (L:ARWA) posted a loss for the first half of the year, but its shares rose 0.9% as it said collections performance was improving.

Aveva Group (L:AVV) rose 1.6% as it said it would buy OSIsoft, a privately held maker of industrial software used to manage plants and factories, for an enterprise value of $5 billion.

© Reuters. FILE PHOTO: Signage is seen outside the entrance of the London Stock Exchange in London

Retailer DFS Furniture Plc (L:DFSD) jumped 15.1% after saying its performance over the last six weeks was significantly above its initial expectations.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.