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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Pharma & Biotech

Traders defy attack jitters to push market higher

The Footsie climbed 90.15 points to 6236 while France's CAC-40 gained 84 points

Traders shrugged off the horror of the Paris terror attacks to propel markets sharply higher on Tuesday.

The FTSE 100 Index climbed 90.15 points to 6236 while France's CAC-40 gained 84 points and Germany's Dax advanced 157 points.

Wall Street and Far East markets set the scene, with futures tracking a US rally last night and Asian stocks rising their most in three weeks.

Accendo Markets analyst Mike van Dulken said: "It’s a sign of the times how easily markets can digest such geopolitical horrors and demonstrate such resilience."

The gains came in spite of lingering worries about a slowing China, with copper hitting fresh six-year lows.

The US dollar also hit new highs as traders priced in a December US rate hike and global central bank policy divergence.

Eyes in the UK were on consumer price inflation (CPI), which remained steady at -0.1% last month, with stronger clothing price growth offset by food and alcohol & tobacco.

It was the ninth month running that CPI was at zero or very close to it.

On the corporate front, easyJet (LON:EZJ) flew 34p lower to 1749p despite posting a fifth year of record profits as investors took profits.

But other transport stocks rallied after Monday's losses, with Iberia and BA owner IAG (LON:IAG) up 8.5p at 584.5p and Ryanair (LON:RYA) ascending €0.09 to €14.3.

Pub group Enterprise Inns (LON:ETI) was one of the strongest FTSE250 performers in early trading after successive full year of like-for-like net income growth, despite the market remaining highly competitive. Shares rose 5.3p to 100.3p.

Punters had a flutter on Paddy Power (LON:PAP), lifting it 1.13p to 113.88p, on continued hopes that full-year reported operating profit would be up on last time following a strong first half.

Elsewhere, mobile marketing company CDialogues (LON:CDOG) dropped more than half or 92.5p to 80p after warning that earnings for the year will take a hit as third quarter revenues slumped and delays hit its fourth quarter project line-up.

Shares in UK biotech Vectura (LON:VEC) were 2.3p healthier at 171.6p in early trade after partner Novartis released some encouraging early data from a study on its latest inhaler.

MARKET PREVIEW

Heartened by a strong showing yesterday on Wall Street, the UK's top shares index is set to open with close to a triple-digit gain.

Spread betting quotes suggest the FTSE 100 will open at around 6,242, having closed last night at 6,146.

In Wall Street yesterday, stocks broke a three session trading slump. At the close of trading, the Dow Jones Industrial had jumped 1.4% to 17,483 while the S&P 500 was up 1.5% at 2,053. The Nasdaq Composite climbed 1.2% to 4,985.

Asian markets were looking similarly buoyant heading towards the close, with the Nikkei 225 up 1.2% at 19,631 in Japan and the Hang Seng 1.6% better at 22,366 in Hong Kong.

“Equity markets are clearly either adapting to terror-related events or yesterday was another example that whenever something bad happens it implies the need for more monetary stimulus, and hence must be 'good' for stocks,” suggested the team at Rabobank Financial markets.

On the economic front, inflation data will be in focus in the UK today.

“The key concern of the BoE [Bank of England] appears to be that core inflation is showing little sign of improving despite tighter labour market conditions but I don’t think it would take too much for the concern to shift from few signs of inflationary pressures to fears that it will rise too rapidly once it starts, which appears to be the fear at the Fed,” writes Craig Erlam, at FX-trading firm OANDA.

“UK CPI [consumer price index] is expected to remain in deflation territory in October, with the core reading at 1%, highlighting that it’s not just energy and food prices that are bringing the deflationary pressures, although they are largely responsible,” Erlam notes.

Turning to the corporate agenda, safety-focused technologies holding company Halma (LON:HLMA) and real estate investment trust British Land (LON:BLND) release interim results and Irish bookie Paddy Power (LON:PAP) puts out a trading statement.

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The Markets
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