Market gains as trade war fears subside

Market report Perry Gourley

Markets staged a recovery as traders’ concerns over a global trade war sparked by the US subsided.

The FTSE 100 index at the close was up 23.55 at 7,627.40. David Madden of CMC Markets UK said: “Stock markets are broadly positive as investors are a little less fearful about a global trade war. Beijing softened its stance overnight, but there was a report recently that they will have a strong countermeasure against the tariffs imposed by the US.”

The takeover of the Express and Star newspapers by the owner of the Daily Mirror has been cleared by the government. Culture Secretary Matt Hancock has said he will not be referring the £126.7 million takeover by Reach, the publisher formerly known as Trinity Mirror, for a full investigation after reports from regulator Ofcom and the competition watchdog. Shares rose by 4.9p to close at 81.9p.

Shares in Mike Ashley’s Sports Direct dipped 0.4p to 401p after it sold a 19 per cent stake in US sports shoe company Finish Line. It comes just days after rival JD Sports Fashion completed its acquisition of Finish Line.

BAE Systems’ shares nudged up after the defence giant bagged a $198 million (£150m) tank contract with the US Marine Corps.

The deal will see BAE deliver an initial 30 “amphibious combat vehicles” with options for a total of 204 tanks. Shares rose 3.4p to 633.4p.

Housebuilder Berkeley warned that strong earnings growth is unlikely to last, with profits set to come in a third lower next year as it continues to battle Brexit headwinds. Shares ended the day down 244p at 3,893p. Shares in the online grocery firm which recently joined the FTSE100 rose after a broker lifted its target on the company to 1,700p The Londonfocused homes firm has warned that strong earnings growth is unlikely to last, with profits set to come in a third lower next year.