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FTSE 100 Weighed by GSK Shares after Nuvalent Takeover

June 9 (Reuters) - UK's blue-chip FTSE 100 slipped ​on Tuesday, weighed by shares of GSK after the healthcare company announced ‌plans to acquire shares of U.S.-based drug developer Nuvalent for $10.6 billion as it seeks to boost its lung cancer treatments.

The blue-chip FTSE 100 index slipped 0.3% to 10,341 points by ​0810 GMT, while the midcap FTSE 250 edged up 0.2%.

  • Shares of GSK ​lost 2.8% and weighed on the broader FTSE 350 Pharmaceuticals and ⁠Biotechnology index that fell 1.6% and was the biggest sectoral decliner.

  • Global markets were ​also eyeing signs of de-escalation in the Middle East after Iran and Israel said ​they had halted attacks on each other following an appeal from U.S. President Donald Trump, who also said that he could have "an idea" for an Iran deal within a few days.

  • Inflation ​concerns, stemming from higher energy costs due to the conflict, have had ​investors price in a 25 basis point interest rate hike by the Bank of England in ‌September, ⁠according to LSEG-compiled data.

  • The main FTSE indexes have underperformed their peers in Asia and the U.S., given their minimal exposure to AI stocks. Against this backdrop, Britain set out a new £1.1 billion ($1.47 billion) plan to build domestic AI computing capacity.

  • Among other ​stocks, BP slipped ​1%, tracking a ⁠slip in crude prices. Attention on the company has piqued after the firing of former chair Albert Manifold and a latest ​report said investors and former executives at the oil major ​were in ⁠the dark about the precise circumstances that led to his departure.

  • Venture Capital firm Molten Ventures gained 9.5% after announcing annual results, Fever-Tree Drinks gained 6.4% after the carbonated ⁠mixer supplier ​said it is confident of meeting full-year market expectations ​for revenue and core profit and announced an increase in share buybacks.

  • Homebuilder MJ Gleeson lost 3.5% ​after projecting annual adjusted pretax profit below market expectations.

Reporting by Johann M Cherian in Bengaluru

Source: Reuters


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