London stocks rise despite Manchester attack

London stocks pushed higher yesterday despite sentiment dented by a deadly terror attack in Manchester, while eurozone equities rallied on upbeat data. The British capital’s FTSE 100 index of leading blue-chip companies added 0.2 percent, although the pound remained under pressure following news of the atrocity. “Trading was inevitably overshadowed by last night’s terror attack in Manchester,” noted Russ Mould, investment director at stockbroker AJ Bell.

At least 22 people were killed, including children, in the suicide bomb blast at the end of a pop concert by US star Ariana Grande in Britain’s third city of Manchester. In the eurozone, meanwhile, stocks rose on well-received economic numbers, with the Frankfurt DAX index climbing 0.4 percent and the Paris CAC rising 0.6 percent.

“The DAX and the CAC are trading higher this morning after both countries revealed impressive flash services and manufacturing PMI figures,” said CMC Markets analyst David Madden. “The eurozone as a whole also reported figures which painted a positive picture of its services and manufacturing sector.”

Eurozone motors forward

The eurozone economy grew at its fastest pace in six years in May as job creation in Europe picked up to its highest level in a decade, a closely watched survey showed. Data monitoring company IHS Markit said its May Composite Purchasing Managers Index came in at 56.8 points, unchanged from April which was also the best for six years. The PMI measures companies’ willingness to invest in their business and so gives a good idea of how well the underlying economy is performing. Any reading above the boom-bust 50 points line indicates the economy is expanding. US stocks opened higher, with the Dow adding 0.2 percent, as the administration of US President Donald Trump was set to release a 2018 budget that seeks a a staggering $1.7 trillion in cuts over 10 years to a category of spending that includes key social and “mandatory” programs for lower-income Americans. US stocks were on track for their fourth straight gain, as investors continued to look beyond doubts about the prospects for President Donald Trump’s policy agenda and focus on improving economic conditions following strong data overseas. About 10 minutes into trading, the Dow Jones Industrial Average stood at 20,927.86, up 0.2 percent. The broad-based S&P 500 edged up 0.1 percent to 2,397.28, while the tech-rich Nasdaq Composite Index advanced 0.1 percent to 6,139.68.

Asia slips

Asian markets mostly turned lower yesterday as profit-taking overshadowed a healthy lead from Wall Street overnight. Global stocks had rallied Monday, with energy firms benefiting from a surge in oil prices as OPEC and Russia look set to extend an output cut, while US dealers welcomed an optimistic survey on US manufacturing. Tokyo stocks dipped yesterday morning with investors on edge over the political situation in Washington and after a suspected terror attack in Britain left at least 19 people dead. The weak session followed an upbeat day on Wall Street, which was driven by a positive US manufacturing survey and an oil price rally.

Tokyo’s benchmark Nikkei 225 index eased 0.12 percent, or 24.32 points, to 19,653.96 by the break, while the Topix index of all first-section shares ticked up 0.02 percent, or 0.33 points, to 1,567.98. The explosion at a pop concert by US star Ariana Grande in Manchester fuelled buying of the yen-a safe-haven currency in times of uncertainty, denting Japanese exporters’ profitability. The dollar was changing hands at 111.18 yen, down from 111.27 yen in New York and 111.35 yen in Asia earlier Monday. The US unit was also under pressure after The Washington Post reported that US President Donald Trump had asked two top US intelligence officials in March to help push back against the FBI investigation into his campaign’s possible links with Russia.

However, there was none of the turmoil that rocked markets last week on fears about Trump’s economy-boosting agenda with his presidency engulfed in a crisis over his firing of FBI chief James Comey and allegations he disclosed sensitive intelligence to Russian officials.

Investors are also waiting to see details of Trump’s 2018 budget, with previews showing he want to slash billions in social spending over 10 years but boost military spending. “When there’s clarity on the US budget plan, it may ease concern over how the investigation over ties to Russia will impact the administration’s ability to execute policies,” Toshihiko Matsuno, a senior strategist at SMBC Friend Securities, told Bloomberg News. Sony rose 0.50 percent to 3,963 yen after its CEO said a years-long restructuring was drawing to a close with operating profit set to return to 20year highs. Banking giant Mitsubishi UFJ Financial fell 0.79 percent to 690.1 yen and Toyota slipped 0.25 percent to 5,982 yen.

Chinese restaurant chain Totenko jumped 14.05 percent to 211 yen after Tokyo’s Ueno zoo said it would take its female giant panda out of a public viewing area, fuelling hopes that she is pregnant. Totenko’s main outlet is near the zoo and a rare baby panda is likely to boost the number of visitors to the area, possibly boosting the restaurant’s business. — Agencies