Economic news

UK's FTSE 100 Rises, US Averts Default; Dechra at 2-wk High

  • FTSE 100 up 0.5%, FTSE 250 adds 0.7%

June 2 (Reuters) - UK's FTSE 100 rose on Friday as investors adopted a risk-on mood following the U.S. Senate's decision to pass a deal to avert a debt default, while shares of Dechra Pharmaceuticals hit a two-week high after the vet drugmaker agreed to be taken private.

The domestically-focused FTSE 250 rose 0.7%, boosted by an 8.2% surge in Dechra after it agreed to be bought by investment firm EQT for an equity value of 4.46 billion pounds ($5.62 billion).

The internationally-focused FTSE 100 climbed 0.5%, tracking global investor mood higher, after the U.S. passed legislation lifting the government's $31.4 trillion debt ceiling, while hopes that the Federal Reserve might stand pat on rates also aided sentiment.

Export-focussed energy firms and industrial metals miners added 1.3% and 2.2%, respectively, chiming with a recovery in commodity prices.

Still, the blue-chip FTSE 100 is poised for its second straight weekly drop, if losses hold. The mid-cap FTSE 250 is set for a marginal gain.

($1 = 0.7923 pounds)

Reporting by Johann M Cherian in Bengaluru; Editing by Sherry Jacob-Phillips

Source: Reuters


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