London stocks finished higher on Thursday, helped along by solid performances from Shire and Tesco, as the US President appeared to dial back a tad on the previous day's aggressive rhetoric on the situation in Syria. Nevertheless, the FTSE 100 only managed to eke out a 0.02% or 1.20 point gain to 7,258.34 as the pound strengthened, especially vis-a-vis Europe's single currency. By the closing bell, the pound was up 0.84% against the euro at 1.1559 and was also showing some strength against the Greenback, rising by 0.45% to 1.42394. Over on the second-tier index it was a different story however, with the FTSE 250 climbing by 0.60% or 117.97 points to trade at 19,772.93. Following on from his very provocative tweet a day earlier, in which he told Russia to "get ready" for missiles coming at Syria, Trump tweeted on Thursday: "Never said when an attack on Syria would take place. Could be very soon or not so soon at all! In any event, the United States, under my administration, has done a great job of ridding the region of ISIS. Where is our 'Thank you America'?" Spreadex anayst Connor Campbell said: "This apparent de-escalation - however, temporary; the tone of Trump's twitter is often a coin toss - has allowed the markets to shake off their initial reticence." This came as UK Prime Minister Theresa May summoned the cabinet to discuss the government's response to the suspected chemical weapons attack in Syria and, according to press reports, the meeting is likely to lead to a backing of US-led intervention. May had already said that "all the indications" were that the Syrian regime of president Bashar al-Assad was responsible for the attack. Investors were also digesting the release of the latest Federal Reserve minutes late on Wednesday, which showed US central bankers were more confident on the economic outlook when they last met to decide on policy, with several of the belief that at some point in about two years' time rates would need to rise above their normal longer-run value. On the corporate front, Tesco was riding high again following its results on Wednesday, but Shire was the standout gainer, amid reports that Japan's Takeda has sounded out creditors for loans as it moves closer to making a bid for the group. Shares of transport operator FirstGroup surged after saying late on Wednesday that it had received a "preliminary"and "highly conditional" indicative proposal from private equity firm Apollo Management, but that this was unanimously rejected on the basis that it fundamentally undervalues the company. Stock of Intertek Group on the other hand was little changed after saying it has agreed to buy Proasem, a provider of laboratory testing, inspection, metrology and training services, based in Colombia, for an undisclosed sum. National Grid edged up as it said major storms in the US will dampen its full-year profits, which for earnings per share will be largely offset by better finance costs and tax. Countryside Properties shares advanced after announcing the acquisition of Leicester-based partnerships housebuilder Westleigh for up to £135.4m in cash on debt free and cash free basis. LondonMetric Property were also on the up, as it announced the disposal of four distribution and two industrial warehouses for £36m on Thursday, reflecting a blended net initial yield of 5.9%. Meanwhile, gambling technology company Playtech racked up strong gains as it agreed to buy 70.6% of Italian betting and gaming outfit Snaitech from two major shareholders for €846m. Man Group rallied as it reported strong net inflows for the first quarter, while homewares retailer Dunelm advanced after posting a 5% jump in third-quarter revenue. Greene King fizzed higher after saying it remains well placed to withstand the external market challenges and deliver long-term value to its shareholders. Over-50s specialist Saga made solid gains despite posting a drop in full-year pre-tax profit, as it sounded an upbeat note on its outlook. British Airways and Iberia parent International Consolidated Airlines Group on the other hand flew lower after saying it has taken a minority share in Norwegian and that it is considering a full offer for the airline. WH Smith was on the back foot after saying its interim profits held more or less steady, while recruiter Hays slipped as it posted a 10% rise in like-for-like gross profit in the third quarter as the UK remained a sore spot. Pets at Home was in the dog house after Morgan Stanley said that having analysed the accounts of almost 400 of its JV Vet practices, it has become "rather sceptical about the main bull point in the Pets at Home investment case". Sky was in focus after the UK Takeover Panel ruled Walt Disney will have to make a mandatory takeover offer for Sky within 28 days of the completion of its acquisition of 21st Century Fox's assets, if the rival Fox and Comcast bids fail. In broker note action, Mitie was upgraded to 'outperform' at RBC Capital Markets, while Ocado was cut to 'neutral' at JPMorgan. SIG was lifted to 'buy' from 'hold' at Shore Capital but Auto Trader was hit by a downgrade to 'neutral' at Exane BNP Paribas. ITV, Reckitt Benckiser, Paddy Power, Smurfit Kappa, Esure and BBA Aviation were all weaker as their stock went ex-dividend. |
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