--- Updated with response from Pacific Biosciences and GSK spokespeople ---
The FTSE 100 Index teetered in positive territory by lunchtime as traders awaited the outcome of a potentially unexciting Opec meeting in Vienna.
The Footsie pared earlier gains to stand 2.68 points ahead at 6194.6 while the FTSE AIM 100 put on a healthy 18 points to 3490.
Crude prices were slightly in the red as leaders of the Middle East oil cartel held a spirited debate about production policy.
The price of a barrel of Brent crude pared gains to stand 0.67% off at US$49.39 and US light crude lost 0.9% to US$48.6.
Saudi Arabia reportedly vowed not to flood the market with more oil, but Iran pushed for a steep rise in output.
Meanwhile, the European Central Bank made no changes to official interest rates at a meeting in the Austrian capital, but traders eagerly awaited president Mario Draghi’s comments afterwards.
Connor Campbell at spread-betting firm Spreadex said: “Analysts expect the central bank to revise the Eurozone’s inflation forecasts higher, in part due to the black stuff’s recent rallies.
“Stimulus-wise, there will likely be little new on the table.”
In the UK, the seasonally adjusted Markit/CIPS UK Construction Purchasing Managers’ Index posted 51.2 in May, down from 52.0 in April and only slightly above the critical 50.0 no-change mark and worse than analysts’ expectations of 51.9.
The latest reading signalled the weakest overall rise in business activity for almost three years.
In the market, vague and unconfirmed rumours were doing the rounds that drug group GlaxoSmithKline PLC (LON:GSK) could be among potential bidders for US rival Pacific Biosciences of California (NASDAQ: PACB).
Pacific’s shares have risen about 13% in the last month and were up 2.26% to US$9.95 in early Wall Street trading on Thursday.
Gossips reckoned Swiss group Roche had taken on advisers Greenhill to assess a possible approach, while Pacific was rumoured to have appointed Goldman Sachs to advise on any interest.
Traders appeared unimpressed by the chatter, with GlaxoSmithKline’s stock off 10.5p at 1437p by lunchtime.
Spokeswomen for Pacific and GSK declined to comment.*
Elsewhere, Conroy Gold & Natural Resources Plc (LON:CGNR) jumped 21.28% to 28.5p on news that it had started a drilling programme on its licences on the Glenish and Clay Lake - Clontibret gold prospects in Ireland.
Beowulf Mining plc (LON:BEM) was up 13.3% to 4.25p as the mineral explorer focused on Sweden and Finland secured a licence for polymetallic exploration in southern Sweden.
Kibo Mining (LON:KIBO) hardened 7.9% to 5.13p on news it was considering a pact with Lake Victoria Gold Ltd. to create a Tanzanian gold joint venture.
Shares in Petroneft Resources PLC (LON:PTR) advanced 6% to 2.2p as production rose sharply due to encouraging results on wells drilled at the Arbuzovskoye field in Tomsk Oblast, Russia.
Premier Veterinary Group PLC’s (LON:PVG) stock fluffed up 9% to 150p as its wholly-owned subsidiary, Premier Vet Alliance (US), signed a deal with US veterinary distribution co-operative Veterinary Products, Inc. (VPI) to supply its preventative health programme for pets to VPI's 600-plus member hospitals.
But Nighthawk Energy (LON:HAWK) backtracked 17.1% to 0.85p after the US-focused oil developer and producer posted a 38% fall in group revenue to US$29.6mln in 2015, due mainly to lower oil prices.
And Sabien Technology Group Plc (LONL:SNT) retreated a penny to 5p as the energy efficiency technology firm predicted annual losses of up to £1.7mln.
Back in the top flight, chemical group Johnson Matthey (LON:JMAT) led the risers with a 3.4% gain to 2923p after reporting lower profit but increasing its dividend.
*Remember, Proactive is reporting the hot market topics being discussed by traders and bankers - it is not market fact. Neither is it an invitation to trade on the information.
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Stocks set for dull start ahead of ECB and Opec meeting
Preview at 6.52am
UK blue chips are set to open lower, after mixed signals from overseas markets overnight.
US indices made modest progress last night, with the Dow Jones average and the S&P 500 both a couple of points higher; the former at 17,789 and the latter at 2,099.
The tech heavy Nasdaq Composite rose four points to 4,953.
Investors likely have more than half an eye on tomorrow's US jobs report for May, while the meeting of the oil producers cartel, Opec, is also sure to be preying on traders' minds.
“Today’s OPEC meeting in Vienna got a lot more interesting yesterday following reports that the group will consider setting a new output ceiling. OPEC has been producing around 32.5 million barrels per day recently, well above the 30 million barrel ceiling that had previously been in place,” noted Craig Erlam at forex trading platform OANDA.
“I highly doubt any ceiling would require a cut in current production levels, given the reluctance to do reduce output until now. Even a freeze would be very surprising given that its plan to let the markets balance themselves by pricing out higher cost players is finally baring some fruit. Any freeze at this stage, which may lift prices even further, would only ease the pressure on those higher cost producers that are currently feeling the strain. If a new ceiling is agreed, I would expect it to be above current levels which would give OPEC room to increase output some more if it wishes, but even this may be tough to agree for the group,” Erlam added.
Towards the end of trading in Asia, the Nikkei 225 index was 300 points in the hole at 16,656 but in Hong Kong the Hang Seng was 22 points to the good at 20,783.
In the UK, the Footsie, which shed 39 points yesterday, is expected to give up another 10 points or so to open around 6,181.
The European Central Bank (ECB) is set to give its latest policy update followed by the press conference, where journalists attempt to drag out nuggets of information from ECB boss Mario Draghi.
In the UK, the Construction Purchasing Managers' Index reading is out early doors.
On the corporate news flow front, platinum refiner Johnson Matthey PLC's (LON:JMAT) results are expected to be a mixed bag.
On the small cap scene, first quarter figures from pre-revenue drug developer Summit Therapeutics (LON:SUMM) will, in all probability, largely be an exercise in rounding up progress made to date this year on its two flagship programmes.
Commodities update
• Brent crude: +13 cents at US$49.85 a barrel
• Gold spot: +US$1.88 at US$1,214.86 an ounce
Market rumour
The FT reports that Saudi Arabia’s sovereign wealth fund is investing US$3.5bn in taxi-hailing app maker Uber. This would make it the largest single investment ever made in a private company.