FTSE 100 watch: Footsie rises as global sentiment improves

AB Foods share price tumbles after trading update

FTSE 100 watch: Footsie rises as global sentiment improves

The UK benchmark index has kicked off the week on the front foot, amid subsiding geopolitical tensions. Associated British Foods (LON:ABF) meanwhile has tumbled to the bottom of the FTSE 100 leaderboard after updating investors on its recent performance.

As of 12:23 BST, the Footsie had added 34.24 points to stand 0.46 percent higher at 7,411.84. Global sentiment has improved today, fuelling appetite for riskier assets.

“We’re seeing a relief rally through European equities, mainly driven by relief that there haven’t been any further missile tests from North Korea over the weekend,” said Jonathan Roy, advisory investment manager at Charles Hanover Investments, as quoted by Reuters, adding that here was also some relief that Hurricane Irma was not as destructive as it could have been. Prudential (LON:PRU) is currently leading other blue-chip insurers higher, having added 1.82 percent to 1,788.00p.

In individual risers, AstraZeneca (LON:AZN) has advanced after unveiling upbeat results from late-stage trials of its oncology treatments Imfinzi and Tagrisso, with the move prompting analysts at Deutsche Bank to hike their price target on the stock. Shares in AstraZeneca are currently changing hands 2.33 percent higher at 4,885.50p.

At the other end of the spectrum has been AB Foods whose shares have been sold off even as the company raised its full-year expectations as a result of a stronger profit delivery from Primark.

“We feel Primark’s good domestic performance is more a sign the UK consumer is tightening the purse strings and moving down the value chain as inflation outstrips wage growth,” Hargreaves Lansdown analyst George Salmon commented, as quoted by The Telegraph. AB Foods’ share price is currently 3.68 percent down at 3,145.00p.

The FTSE 100 was 0.36 percent up at 7,404.40 points as of 12:32 BST on Monday, 11 September 2017.

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