FTSE 100 preview: Uptrend to continue despite downbeat leads

Shire to stay in focus after rejecting Takeda bid

FTSE 100 preview: Uptrend to continue despite downbeat leads

The UK benchmark index looks set to start the last trading day of the week on the front foot, despite downbeat leads from the US and Asia. Shire (LON:SHP) will stay in focus in today’s session after it emerged that Botox maker Allergan had been considering an offer for the FTSE 100 group, but had subsequently decided to drop its pursuit.

Index seen higher

IG’s opening calls suggest that the FTSE 100 will start the day 0.24 percent higher at 7,347 points. Investors are likely to shrug off a downbeat lead from the US where stocks closed lower last night, pressured by the technology sector, while investors continued to digest corporate earnings amid the ongoing reporting season.

“We’ve been fairly happy with the results thus far,” said Shannon Saccocia, chief investment strategist at Boston Private, as quoted by CNBC, while adding that investors were “looking for great results as they search for the next catalyst to take us higher”. Asian shares meanwhile have been subdued this morning, following a revenue warning by Taiwan Semiconductor Manufacturing, the world’s largest contract chipmaker.

In the UK, the Footsie closed little changed yesterday, adding 11.58 points to end the session 0.16 percent higher at 7,328.92, finding support in commodity shares and Shire, whose shares rallied nearly six percent after it emerged that Japan’s Takeda had made a bid for the company.

Friday’s releases

Today’s releases include the eurozone’s consumer confidence index for April, due out at 15:00 BST. On the corporate front, Reckitt Benckiser (LON:RB) is scheduled to update investors on its performance and Proactive Investors reports that UBS expects that the consumer goods group will report organic sales growth of 2.8 percent in the first quarter.

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