Insider Business Global trade optimism boosts FTSE 100; Plus500 tanks

Global trade optimism boosts FTSE 100; Plus500 tanks

Britain’s FTSE 100 opened higher on Tuesday as a stronger dollar boosted banks and multinational stocks in a broad-based rally across Europe, while trading platform Plus500 plunged after warning results will miss due to a regulatory crackdown.

The FTSE 100 was up 0.4 percent as the dollar strengthened and optimism from the trade talks seen in Asia and on Wall Street spilled over to Europe.

Banks and conumser staples, which make a big chunk of their money abroad, led the gains. Some 70 percent of FTSE 100 constituents make their cash in foreign markets.

Market sentiment was also lifted after U.S. lawmakers struck a tentative agreement to avert another government shutdown and positive noises from Beijing, where officials were hopeful about talks to resolve a protracted trade dispute.

The domestically-focused FTSE 250 added 0.3 percent by 0913 GMT with gains limited by a plunge in Plus500 shares which accounted for a 30-point drop on the index.

Plus500 lost more than a third of its value after the online trading platform forecast 2019 results will be below market expectations, hurt by regulatory crackdown in the European Union on the sale of certain financial products to retail clients.

The stock tanked 38 percent to its lowest in almost a year and dragged rival IG Group down 5.6 percent.

Investors were also cautious ahead of a parliamentary address by Prime Minister Theresa May later in the day as she struggles to seal a Brexit deal.

On the blue chips, miners rose after Goldman Sachs said European commodities and mining equities were “attractively positioned”.

Gambling firms rose on news that horse racing in Britain will resume on Wednesday after being halted last week in light of several cases of equine influenza.

Tour operator TUI , which has slumped since a profit warning last week, slipped 8 percent as its first-quarter underlying loss widened.

Small-cap retailer Debenhams shot up 45 percent after it secured additional funding from lenders as it struggles to find a longer-term solution to its financial woes.

(Reuters)

Top Stories

President to unveil measures to combat corruption in Cyprus

President Nicos Anastasiades will unveil measures to combat corruption in Cyprus in a televised address on Thursday at 8:00pm local time. The President, along with...

Police issue 147 fines for covid measures breach over past 24 hours

Police fined 146 citizens and one establishment owner all across Cyprus over the past 24 hours for violation of measures aiming to curb the...

United States drops in global corruption index on election aftermath

"Serious departures" from democratic norms were a core factor in driving the United States to its lowest in eight years on a global corruption...

Star lawyer in scandalous Al Jazeera ‘golden passports’ video posts own sound clip

A Paralimni lawyer who had starred in a scandalous ‘golden passports’ video which brought down the House president and an opposition MP on Thursday...

Court to decide next Thursday on suspension of operation decree of toxic asphalt unit

A decree application for the immediate suspension of operation of a highly-toxic asphalt production plant in Dhali area was submitted before a Nicosia district...

Taste

Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...

Mezedes

No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...