View the article online at http://citywire.co.uk/money/article/a499254
M&A talk helps FTSE claws back up from 11-week low
Britain’s FTSE 100 staged a mild comeback on Monday, clawing back up from Friday’s 11-week low; Eurasian Natural Resources (ENRC.L) the topped index, while Aggreko (AGGK.L) was its biggest loser.
Britain’s FTSE 100 staged a mild comeback on Monday amid merger and acquisition talk, clawing back up from Friday’s 11-week low ahead of key UK inflation data tomorrow.
The benchmark index of blue-chip shares added 0.13%, or eight points, to 5,773 and the Mid-250 index eased 0.1%, or seven points, to 11,780.
‘After weeks of falling markets, the old chestnut of M&A chatter has helped to lift sentiment and given blue chips a modest kick-start, said David Jones, chief market strategist at IG Index.
The stock, whose shares have slumped 16% in the past month, jumped 35p, or 4.7%, to 782p.
Pointing out that the report had not ‘elicited much in the way of an official response,’ Jones added: ‘However, with ENRC hanging onto its 5% gain throughout the day, it looks as if the market feels this story has some foundation.’
Actual M&A activity lifted US stock indices. VF Corp, whose brands include Wrangler denim, agreed to buy outdoor clothing firm Timberland for about $2 billion (£1.2 billion) and Allied World Assurance Co Holdings agreed to buy reinsurer Transatlantic Holdings for $3.2 billion.
The Dow Jones Industrial Average took on 0.11% to 11,965 and the Standard & Poor's 500 index gained 0.09% to 1,272; but the Nasdaq Composite index slid 0.13% to 2,640.
Meanwhile, investors awaited the publication on Tuesday of Britain’s consumer price index. Economists forecast the official gauge of inflation to hold steady at 4.5%, according to a Reuters poll.
Jonathan Loynes, economist at Capital Economics, said the consultancy expected the headline inflation rate to have dropped back to around 4.3% in May. ‘But this is likely to prove just a temporary pause in an upward trend which could now take inflation towards 5.5% when the utility price hikes kick in later this summer,’ he added.’
China is also due to release inflation data, and the United States is set to produce a report on retail sales.
Ahead of the figures, sterling strengthened 0.45% against the dollar to $1.601, and gained 0.14% versus the euro to €1.135.
News sponsored by:
Here at BlackRock, we help investors make more out of commodities with a range of innovative, flexible and resilient investment strategies.
From Brazil and Mexico, to Vietnam and Nigeria, the rapidly developing economies of Latin American and frontier markets, which are some of the smaller, less developed economies in the world, provides investors with a wealth of potential opportunities. Discover why BlackRock's investment trust range is well placed to help you make more of these exciting regions.
In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.
More about this:
Look up the funds
Look up the shares
- Eurasian Natural Resources Corp PLC (ENRC.L)
- Glencore International PLC (GLEN.L)
- Lloyds Banking Group PLC (LLOY.L)
- Barclays PLC (BARC.L)
- Aggreko PLC (AGGK.L)
Look up the fund managers
More from us
- Glencore worth £6 a share, says independent analyst
- Emerging Markets Week: ‘fasten your seatbelts’ Brazil investors
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add email@example.com to your safe senders list so we don't get junked.