London’s FTSE 100 had narrowed the morning’s early losses by midday with the blue chip benchmark down just 12 points, 0.18%, for the day.
At 1:00pm the FTSE 100 was priced at around 6,820.
Pressure remains on City’s pharmaceutical stocks following Hillary Clinton put scrutiny back on the so-called ‘price gouging’ in the sector.
Attentions are now turning to Jackson Hole – a town in Wyoming that annually hosts a Federal Reserve policy symposium - where Fed chair Janet Yellen is scheduled to speak tomorrow.
“Yellen’s speech at Jackson Hole tomorrow remains the headline act this week and prior to that I expect traders to proceed with caution,” said Craig Erlam, analyst at Oanda.
“This event has often been used to warn about upcoming policy changes and whether that is the next hike or a more dovish Fed, we’ll have to wait and see.”
That said, Erlam added that he wouldn’t be surprised if the event turned out to be an anti-climax should Yellen “once again keeps her cards very close to her chest.”
Now big shareholders stick it to Sports Direct https://t.co/x1n6Q5OpLL
— Proactive News Desk (@UK_Proactive) August 25, 2016
Pharma hit as Clinton puts fresh scrutiny on drug prices - 10:30am
London’s FTSE 100 gave up more than 50 points on Thursday morning with pharmaceutical stocks among the biggest fallers after an American presidential candidate sparked fresh uncertainty.
Whilst markets are more vaguely unsettled at the uncertainties posed by Donald Trump potentially becoming ‘leader of the Free World’, Hillary Clinton’s quite specific new comments have spooked investors in drug stocks.
Clinton, amid stateside controversy over perceived over charging for drug treatments, publicly called on Mylan to reduce the price of its EpiPen treatment for severe allergies which is said to have increased by more than 400% in the past decade.
The Democrat has already said on the campaign trail that she would ‘fight’ pharmaceutical companies as a pledge to help lower costs for consumers.
“Hillary Clinton’s attack on the price gauging of an allergy medicine is expected to continue to weigh on the healthcare sector,” said Jasper Lawler, analyst at CMC Markets.
He added: “Her statements reaffirm a fear in the industry that a Clinton presidency would see a serious crackdown on pharmaceutical price gauging.”
Timing could perhaps be better for generic medicine maker Hikma Pharmaceuticals Plc (LON:HIK), which yesterday revealed teething problems with a recent acquisition, as it was marked as the FTSE 100’s biggest loser, down 5.4% at 2,109.5p.
Shire Plc (LON:SHP) meanwhile lost 4.2% in early deals. AstraZeneca Plc (LON:AZN) gave up 2.4% and GlaxoSmithKline Plc (LON:GSK) dipped 1.3%.
Elsewhere it was another down day for Glencore Plc (LON:GLEN) as the commodity trader turned miner declined another 4.5%, as pressure on the stock persisted after it reported losses on Wednesday.
CRH, the Irish cement and building materials group, was the top FTSE 100 performer as it rose 2.8% to 2,539p following interim results that showed a recovery in its US markets. Earnings increased by 20% to €1.12bn for the half year.
Ian Forrest, analyst at The Share Centre online broker, described the six monthly financials as “impressive”, highlighting positive effects of two major acquisitions.
Few other FTSE 100 risers could be deemed particularly notable, although Marks & Spencer Plc (LON:MKS) added 2.2% and WPP Plc (LON:WPP) gained 1.8%.
Risers & Fallers: Taihua, Kibo Mining, Bellzone Mining... https://t.co/1FkY2fahIk
— Proactive News Desk (@UK_Proactive) August 25, 2016
FTSE 100 starts Thursday’s trading on the back foot - 8.15am
The FTSE 100 fell 24 points to 6,811.
The top winner was CRH (LON:CRH), up 21 points to 2,490p.
The biggest loser was Shire Plc (LON:SHP), down 3% to 4,886p.
News
OptiBiotix in good heart at the half-way point
Zamano’s strong first half sales helps mitigate increased investment
Bushveld Minerals closes share placing
Jimmy Choo gets a "woo!" from Liberum - @JimmyChooLtd https://t.co/PfV2nkoldI
— Proactive News Desk (@UK_Proactive) August 25, 2016
Preview at 7.01am
London’s FTSE 100 is expected to start Thursday on the back foot following Wall Street and crude lower.
Brent crude was down about 1.7%, changing hands at around US$49 per barrel, after hopes for a production freeze at OPEC were somewhat diminished while US inventories data also underscored the current glut in supply.
US equities last night closed lower, particularly pharmaceuticals which got a fresh jolt after presidential candidate Hillary Clinton gave a reminder, via social media, that she promises a harder line on drug pricing.
Wall Street’s main benchmark backed off. The Dow Jones ended Wednesday’s session down 65 points, 0.35%, at 18,481. The S&P 500 and Nasdaq, meanwhile, fell 0.5% and 0.8% respectively to end the day’s trading at 2,175 and 5,217 respectively.
Trading in Asia has been mixed. Japan’s Nikkei dipped 0.26% to 16,554 while Hong Kong’s Hang Seng edged 0.2% higher. The Shanghai Composite meanwhile fell 0.85% to 3,059.
Australia’s ASX 200 was down 0.4% to 5,540.
In London, spread betting and CFD group IG Markets sees the FTSE 100 just over 10 points lower, with the benchmark called at 6,820 to 6,824 about an hour before the trading day properly begins.