London’s blue-chip stocks found first gear near the end of the day, having been in reverse throughout the morning and lunchtime sessions.
October didn’t end particularly well, but November has started on a reasonably solid footing, with US and European markets putting on decent gains.
Across in the US, the Dow Jones Industrial Average was up 87 points at 17,749 while the S&P 500 rose 14 points to 2,093. The tech-heavy Nasdaq Composite gained 44 points to 5,098.
Meanwhile, in Europe, it was a similar story, with the German Dax jumping 101 points to 10,951 while the French Cac40 climbed 18 points to 4,916.
Even the FTSE100 finally got in on the act, rising 1 point to 6,362, having spent most of the day around 20 points lower.
In the City, with Imperial Tobacco (LON:IMT) set to announce full-year results tomorrow, talk resurfaced about a possible bid for the group from arch-rival British American Tobacco (LON:BATS).
The talk in dealing rooms was about a potential £50 a share offer by BAT for the maker of Lambert & Butler and JPS, although it is understood BAT might break it up and hive off parts to others such as Japan Tobacco. Shares nudged 5p higher tp 3,504p.
Elsewhere, another day, another takeover rumour involving acquisitive drug group Shire. Shire has bid for skin swelling drug maker Dyax Corp and is also said to be interested in osteoporosis specialist Radius Health (NASDAQ:RDUS).
But latest talk is that Shire could also bid for ZS Pharma (NASDAQ:ZSPH), which specialises in treatment for hyperkalemia, or excessive levels of potassium in the blood.
Shire chief executive Flemming Ornskov said last month that the company was looking at other smaller takeover opportunities besides key target Baxalta, but declined to name them. Shares were 45p lower to 4,879p on the news.
In other news, the Generics business is letting the side down at Hikma Pharmaceuticals (LON:HIK), with slower than expected growth in the gout treatment, colchicine.
Revenue guidance for the Generics business has been lowered to around US$150mln, versus previous guidance of US$175mln to US$200mln, while the adjusted operating margin percentage is projected to be in the high twenties. Shares slumped around 5% to 2,051p.
Meanwhile, Shares in Ophir Energy (LON:OPHR) moved higher despite news it has plugged and abandoned its first exploration well in the Gulf of Thailand as a dry hole.
SP Angel said: “While this is undoubtedly disappointing, we do not believe that this result kills the prospectivity in the immediate vicinity, nor unduly dents the company's valuation.”
Shares were 4.4% higher to 100p.
In the small cap universe, LPA Group (LON:LPA) was almost 30% higher to 87p after saying full year results are expected to be ahead of market expectations following an improved second half.
Ariana Resources (LON:AAU) gained around 16% to 1p after its chairman, Michael de Villiers bought 4.5mln shares at 1p per share, taking his stake in the company to above 3%.
Converselty, Caza Oil & Gas (LON:CAZA) was almost 30% lower as it secured another extension to its financing arrangement with Apollo Investment despite remaining in breach of the covenants of the deal. Meanwhile, it is in advanced talks with a potential financier, but, should a deal be reached, it would likely result in “significant dilution”.