The UK benchmark index has jumped in London on the first trading day of December, with investors reacting positively to the news of a truce between the US and China over their trade relations. GlaxoSmithKline (LON:GSK) is underperforming the FTSE 100 with investors digesting the sale of its Horlicks business and the acquisition of Massachusetts-based Tesaro.
FTSE 100 rallies
As of 12:33 GMT, the Footsie had climbed 124 points to stan 1.78 percent higher at 7,104.24. Blue-chip miners are leading the index higher after Washington and Beijing agreed to halt additional tariffs and to meet again in 90 days. Antofagasta (LON:ANTO) is currently the session’s biggest riser in percentage terms, trading 7.55 percent higher at 860.80p.
“The trade war may not be over, but it’s at least been delayed,” said Mike van Dulken, analyst at Accendo Markets, as quoted by Reuters.
Proactive Investors meanwhile quoted Neil Wilson of markets.com as commenting that December was “starting with a bang, with a de-escalation in Sino-US tensions positive for risk”.
“Following the Powell put last week, this is the second key ingredient for a strong December rally for global equities,” the analyst added, referring to last week’s comments by the Federal Reserve chair.
GSK under pressure
GSK, however, is underperforming the broader London market, as it announced that it had inked a deal to sell its nutrition business to Unilever (LON:ULVR), and that it had reached an agreement to acquire Tesaro, oncology-focused company based in Waltham, Massachusetts, for an aggregate cash consideration of approximately $5.1 billion. The FTSE 100 drugmaker’s shares are currently changing hands 5.48 percent higher at 1,532.71p.
The FTSE 100 was 1.64 percent up at 7,094.41 points as of 12:58 GMT on Monday, 03 December 2018.