The UK benchmark index has slipped into the red this Monday, with the trade tensions between the US and China returning to plague investor sentiment in the new week. Sky (LON:SKY) and Randgold Resources (LON:RRS), however, are lending some support to the FTSE 100, lifted by deal activity.
FTSE 100 slips into the red
As of 12:19 BST, the Footsie had given up 18.04 points to stand 0.24 percent lower at 7,472.19, with investors again focusing on the trade war between the US and China.
“Hopes of renewed trade talks between the US and China have been thrown out, with China ruling out further talks amid supposed ‘blackmail’ by the US,” Joshua Mahony, a market analyst at IG Markets, commented, as quoted by Proactive Investors. “While markets no doubt believe that the current trade concerns are unlikely to be the beginning of a long-term phenomenon, the latest breakdown in talks highlights the possibility that this will rumble on for some time yet.”
Sky and Randgold rally
Sky, however, has proved to be a bright spot on the blue-chip index as Comcast outbid Rupert Murdoch’s Twenty-First Century Fox in a blind auction to buy the FTSE 100 pay-TV provider, with what the UK company called a ‘materially superior’ offer. Sky’s shares are currently changing hands 8.71 percent higher at 1,723.00p.
Randgold has been another prominent Footsie riser after announcing a merger deal with Canada’s Barrick Gold.
“The larger scale will provide greater ability to grow, where the assets merit being developed,” wrote Investec analysts, as quoted by Reuters. Randgold’s shares are 6.11 percent better off at 5,224.00p.
The FTSE 100 index was 0.20 percent down at 7,475.01 points as of 12:28 BST on Monday, September 24, 2018.