FTSE 100 watch: Footsie recovers after trade war slump

Sky share price rallies amid Fox-Comcast bidding war

FTSE 100 watch: Footsie recovers after trade war slump

The UK benchmark index has climbed higher in today’s session, recouping some of the previous session’s hefty losses, prompted by the escalating trade war between the US and China. In individual stock news, Sky (LON:SKY) has soared near the top of the FTSE 100 leaderboard after Comcast made a counter-bid for the blue-chip broadcaster.

FTSE 100 gains ground

As of 12:16 BST, the Footsie had added 57.99 points to stand 0.76 percent higher at 7,649.95. The blue-chip index has regained some of the ground lost yesterday following news that the US will slap extra tariffs on Chinese imports.

“Despite recent gains, tentative bearish signs are coming into play for European and US indices,” Joshua Mahoney, market analyst at IG, commented in a note, adding that the FTSE 100 had rebounded back into the 7,623-point mark overnight, respecting the 7,569-point support level.

Individual Footsie movers

Sky has been one of today’s most prominent Footsie risers following the latest move in the Comcast-21st Century Fox bidding war.

“While a counter-bid is possible, we do not view Sky at 15 pounds as an attractive proposition and view the bidding war as lacking sufficient momentum to support Sky above its current price (3% above the leading bid),” said Macquarie analysts, as quoted by Reuters, downgrading the stock to ‘neutral’. Sky’s share price is 2.79 percent better off at 1,535.75p.

Glencore (LON:GLEN) is outperforming the broader market, having gained 1.64 percent to 316.25p, despite news that the company is facing at least two lawsuits by US shareholders accusing the commodities giant  of having made false and misleading disclosures before it received a US subpoena.

The FTSE 100 was 0.89 percent up at 7,659.76 points as of 13:00 BST on Thursday, 12 July 2018.

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