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FTSE Rallies Ahead of Budget

Thu, 15th Nov 2018

The FTSE 100 rallied slightly in anticipation of the coming budget, as upbeat earnings and positive corporate news helped to boost investor sentiment.

The FTSE 100 gained 73 points, or around 1.05 percent, to 7,012, bouncing back after a 0.9 percent fall on Friday. The pound, meanwhile, is flat against both the dollar and the euro, ahead of Chancellor Philip Hammond’s latest budget.

Meanwhile, Rio Tinto gained more than 1 percent. The mining giant said that an agreement from 2016, that was non-binding and allowed Aluminum Corp of China to acquire the company’s interest in the Simandou iron ore project had now lapsed.

Meanwhile, HSBC Holdings gained 4.5 percent after reporting that it had seen a 28 percent increase in third-quarter, pre-tax profit. The company was helped by lower costs, and the banks’ increased focus on Asia.

Shire PLC saw its shares increase by 2.3 percent. Takeda, a Japanese company, has proposed the sale of a new treatment that is currently being developed by Shire.

Outside of the London markets, IBM has announced that it has agreed to acquire Red Hat for $34 billion. Red Hat is a software giant with a focus on the cloud, and IBM’s bid is at the high end of the valuation for the company, something which they hope will discourage rivals from entering even higher bids. The acquisition has been approved by both boards, and is now awaiting approval from shareholders at Red Hat. IBM’s shares fell after news of the bid spread.

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