UK equities muted as risk appetite fades after recent gains; DS Smith, Diploma jump
Reuters
Published Mar 27, 2024 08:40
Updated Mar 27, 2024 17:01
By Siddarth S and Medha Singh
(Reuters) -Britain's FTSE 100 ended flat on Wednesday as investors stayed away from making big bets in a holiday-shortened week, while paper and packaging firm DS Smith and specialised products and service distributor Diploma (LON:DPLM) on deal-related news.
DS Smith jumped 10.2% after the firm confirmed it was in discussions with International Paper over an all-stock buyout for 5.72 billion pounds ($7.22 billion) from its U.S.-listed rival.
Also capping losses, Diploma soared 9.5% after the company said it would acquire Peerless Aerospace Fastener for 236 million pounds ($297.88 million).
Gold miners led the charge in sectoral gains with 4.2% jump, tracking higher bullion prices. [GOL/]
On the flip side, automobiles and parts index dropped the most, down 4.6%, dragged lower by a 15% slump in automotive fluid storage firm TI Fluid Systems's shares after a discounted share placement.
The FTSE 100 index ended flat, while the domestically oriented FTSE 250 edged 0.2% higher to notch another more than one-year closing high.
The blue-chip UK stocks index has traded in a tight range this week as investors digested recent gains after dovish signals from major central banks, including the Bank of England (BoE) drove the blue-chip index to its best week gain in more than six months and a one-year high on Friday.
Investors were focussed on a key reading of the U.S. personal consumption expenditure price index (PCE), the Federal Reserve's preferred inflation gauge, due on Friday, when most global markets will be shut for the Good Friday holiday.
"Positioning is on the long side in equities. Hence, this week could see a modest pullback in risky assets on any position squaring," said Mohit Kumar, chief economist Europe at Jefferies.
Investors will now turn to the UK's fourth-quarter gross domestic product (GDP) readings due on Thursday.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.