Investor Alert

London Markets Archives | Email alerts

March 28, 2018, 12:41 p.m. EDT

FTSE 100 scores win, shaking off tech sector worries as Shire rallies

Burberry, ABF ratings upgraded

Watchlist Relevance

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    FTSE 100 Index (UKX)
  • X
    British Pound (GBPUSD)

or Cancel Already have a watchlist? Log In

By Carla Mozee, MarketWatch


U.K. stocks pulled out a win Wednesday, as a surge in biopharma company Shire PLC on deal buzz helped the blue-chip market shake off downside pressure emanating from tech stocks worldwide.

How markets moved

The FTSE 100 index /zigman2/quotes/210598409/delayed UK:UKX -0.14% finished up by 0.6% at 7,044.74, led by utility shares, but commodity-related sectors led decliners. On Tuesday, it jumped 1.6% and ended a four-session losing streak.

But with one full trading session left in March, the blue-chip benchmark was still poised to fall 2.6% for the month, and has lost more than 8% this year.

See: Brace for more ‘poor’ action by U.K. stocks, says world’s largest asset manager

The pound /zigman2/quotes/210561263/realtime/sampled GBPUSD +0.1697% bought $1.4109, down from $1.4159 late Tuesday in New York.

What drove markets

The FTSE 100 staged a turnaround after falling as much as 1.1% during the session. That improvement came largely on the back of Shire shares  , which rallied as much as 26% after Japanese biopharma Takeda Pharmaceutical Corp. /zigman2/quotes/201302442/delayed JP:4502 -0.96%  said it’s considering making an offer for its rival. Shire shares closed up 15.6%, the strongest percentage gain since June 2014.

Ratings upgrades for Burberry Group PLC and a couple of other companies by large investment banks also helped move the benchmark into positive territory.

But U.K., European /zigman2/quotes/210599654/delayed XX:SXXP -0.03%  and Asian /zigman2/quotes/210597971/delayed JP:NIK +0.37%   /zigman2/quotes/210598030/delayed HK:HSI +1.05%  blue-chips had a rough start following the rout in tech stocks that led a sharp downturn on Wall Street on Tuesday and left the Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP +2.00% down 2.9%. The tech-heavy Nasdaq was in the red during Wednesday’s session.

Investors dumped tech sector shares, which have been at the forefront of Wall Street’s run higher for more than a year, on various regulatory concerns including for electric car maker Tesla Inc. /zigman2/quotes/203558040/lastsale TSLA +4.73%  , and news that the U.S. is considering a ban on Chinese investment in certain sensitive technologies.

By contrast, reports that the U.S. and China are conducting behind-the-scenes trade talks helped drive a surge in London-listed blue chips on Tuesday, as concerns about a global trade war abated.

Opinion: Who gets hurt in a trade war? Mostly not China

But the FTSE 100 appeared able to shake off tech worries faster than other markets as the tech sector has a weighting of just 0.62% on index, with only two components in the group, according to FactSet data.

-10.59 -0.14%
Volume: 574,184
Feb. 1, 2023 4:59p
US : Tullett Prebon
+0.0021 +0.1697%
Volume: 0.0000
Feb. 1, 2023 8:01p
JP : Japan: Tokyo
¥ 4,036.00
-39.00 -0.96%
Volume: 1.49M
Feb. 2, 2023 9:41a
P/E Ratio
Dividend Yield
Market Cap
¥6433.03 billion
Rev. per Employee
-0.12 -0.03%
Volume: 0.00
Feb. 1, 2023 11:03p
JP : Nikkei
+101.62 +0.37%
Volume: 0.00
Feb. 2, 2023 9:41a
HK : Hong Kong Exchange
+229.85 +1.05%
Volume: 2.55M
Feb. 1, 2023 4:08p
US : Nasdaq
+231.77 +2.00%
Volume: 6.43B
Feb. 1, 2023 5:16p
US : U.S.: Nasdaq
$ 181.41
+8.19 +4.73%
Volume: 213.64M
Feb. 1, 2023 4:00p
P/E Ratio
Dividend Yield
Market Cap
$548.09 billion
Rev. per Employee
1 2
This Story has 0 Comments
Be the first to comment
More News In

Story Conversation

Commenting FAQs »

Partner Center

World News from MarketWatch

Link to MarketWatch's Slice.