The UK benchmark index has fallen into the red, tracking the US lower, with investors digesting a string of corporate news. Shares in British American Tobacco (LON:BATS) are outperforming the broader market following the FTSE 100 company’s annual general meeting statement.
FTSE 100 heads south
As of 12:42 BST, the Footsie had lost 54.23 points to stand 0.73 percent lower at 7,371.17. The blue-chip index has taken cues from the US, where shares fell last night as investors digested earnings.
“European markets are showing initial signs of a potential longer lasting pullback, while US markets are left reeling after a sharp decline yesterday,” Joshua Mahoney at IG commented in a note, adding that the FTSE 100 had pulled back, “bringing a bearish short-term picture following the break below trendline support and the 7,358 swing low”.
Individual stock news
Investors have had a lot of corporate news to digest in today’s session with the earnings season in full swing. BAT’s share price has gained 1.12 percent to 3,786.00p after the company announced that it had decided to further increase investment plans behind its Next Generation Products for the current year due to the portfolio’s success. Reuters quoted analysts at UBS as saying that the group’s guidance for products such as tobacco heating products would likely reassure the market.
Shire (LON:SHP) has been another prominent Footsie riser, recovering in afternoon trade, after announcing that its board was set to recommend a tie-up with Takeda Pharmaceuticals following the Japanese group’s sweetened takeover offer. Shares in the UK rare disease specialist are currently changing hands 0.81 percent higher at 3,962.00p.
The FTSE 100 was 0.73 percent down at 7,371.12 points as of 13:06 BST on Wednesday, April 25, 2018.