FTSE opened on the front foot today, rising 49 points or 0.6% to 7,530 points following news that China halves tariffs on some US imported goods to help negotiations for phase two of the trade deal.

Cyclical sectors such as Autos and industrial metals and Oils led the market while defensive sectors like Pharma and software lagged.

The tariff move buoyed markets in Asia with the Hang Seng up 2.7% and Japan’s Nikki 225 index 2.4% higher. The effect spread to commodities with Crude up 1.2%. The pound was steady against the dollar at 1.29.

ROYAL MAIL SLUMP

UK’s Royal Mail (RMG) said that the threat of strikes in late 2019 had hurt parcel revenue during the Christmas period leading to a bleaker outlook, ‘unless we are able to make significant progress in delivering our transformation plan, our ability to meet the year three targets of our Journey 2024 plan will be compromised’.

The shares plunged 10% to 174p.

On the rise were shares in catering firm Compass Group (CPG), up 2.5% to £19.53 after it reported year-on-year first-quarter organic revenue growth of 5.3% and maintained its 2020 growth forecast of 4% to 6%.

Food ingredients company Tate & Lyle (TATE) reported first-half performance in line with expectations and reaffirmed its full-year guidance for earnings per share to be broadly flat to low single-digit growth. The shares were also flat at 800p.

INSURANCE CHARGE

Shares in insurer Beazley (BEZ) were on the charge, up 6% to 566.5p after the company reported a leap in pre-tax profit to $267m from $76.4m in 2018 driven by a 15% rise in gross premiums. The Lloyds of London underwriter said it expects double-digit premium growth in 2020.

Emerging markets fixed income manager Ashmore (ASHM) reported a jump in profit as net asset increased on inflows and positive investment performance, giving the shares a 2% lift to 564.7p.

For the six months ending 31 December 2019, pre-tax profit rose 42% to £132.4m and adjusted net revenue grew 20% driven by an 18% increase in net management fees.

HOLIDAY PRICES RISE

In an update for the four months to 31 January online travel specialist On the Beach (OTB) said that a reduction in capacity following the failure of Thomas Cook led to a significant increase in prices. It expects to report strong summer sales helped by higher marketing spending. The shares lost altitude slightly, falling 0.8% to 401.9p.

Shares in embattled UAE-based healthcare company NMC Health (NMC) were 7% higher at £10.30 following a financial times report that its founder BR Shetty may return to an active position in the company following an operational review.

Shetty stepped down as chief executive in 2017. The company's shares have halved since short-seller Muddy Waters published its critical dossier in December.

There are a number of shares trading ex-dividend today and a list can be found HERE

A full list of risers and fallers can be seen HERE

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Issue Date: 06 Feb 2020