Perry Gourley: Bid talk sees market head higher again

Market gains
Market gains
Share this article
0
Have your say

The London market climbed higher, led by bid speculation at drug firm Shire, as traders bet that a hike in US interest rates will not come until well into next year.

This week a stream of weak inflation data in the US, the UK and the eurozone fuelled concerns that the US Federal Reserve will be forced to wait until deep into 2016 before hiking interest rates. Cheap cash tends to favour investors buying shares.

The FTSE 100 Index was up 39.37 points to 6,378.04, as Tesco rose strongly as traders digested the supermarket’s sale yesterday of 14 development sites in its drive to cut costs.

Tesco was up 4.8p to 197p, following yesterday’s announcement that it had sold off 14 development sites for a total of £250 million as it continues its cost-cutting strategy.

It said the sites would be suitable for mixed-use and residential development and “marks further progress against Tesco’s strategic priority of protecting and strengthening its balance sheet”.

Shire was the top riser on the main market up 3.1 per cent, or 136p to 4,511p, amid speculation that it was looking to take over US rival Radius Health.

Miner Glencore fell almost 2 per cent, or 1.8p to 116p, after being the strongest riser in the top flight for much of the session.

NEW YORK: The Dow Jones Industrial Average was up 74.22 points, or 0.43 per cent, to close at 17,215.97. The Nasdaq Composite Index also gained 16.59 points, or 0.34 per cent, to end at 4,886.69. The Standard & Poor’s 500 Index was up 9.25 points, or 0.46 per cent, at 2,033.11.