FTSE 100 Watch: Footsie Trading Near Eight-Week Highs

on Jul 29, 2013

iNVEZZ.com Monday July 29th: The Footsie climbed by 28.14 points or 0.43 percent to 6,582.93 in volatile morning trading today after a proposed mega-merger between global advertising agencies Publicis and Omnicom buoyed top UK rival WPP.

**WPP** surged by more than four percent to 1,216.36p as analysts said possible conflicts of interests between large clients could see some business shifting away from Publicis and Omnicom. “In our view, everybody is a winner in this deal,” Barclays’ media analysts said in a note. “Interpublic, Havas and WPP shareholders benefit because those agencies are likely to achieve some client wins from the merger disruption.”

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**Aviva** also gained today on reports that the British insurer was plotting expansion in Indonesia. The company is understood to be in discussions with Astra International, a wholly-owned division of Jardine Matheson, over a distribution deal in Indonesia. Aviva could potentially partner up with Astra to sell life policies in the Asian country. Shares in the FTSE 100 group rose by 1.57 percent to 374.70p in morning trading (Aviva Share Price Rises as Insurer Said to Be Eyeing Asian Expansion).

**Barclays** was the top faller on the Footsie with the shares losing more than three percent to 310.30p after reports that the bank was planning to raise ₤4 billion from investors in order to plug a capital shortfall (UK Bank To Seek ₤4 Billion from Investors). “A capital raise…would dilute interim earnings and there is a risk of future excess capital remaining trapped in the group if regulators move the requirements once again,” Nomura said in a note. Barclays is due to publish its interim results tomorrow with analysts projecting a profit of ₤3.7 billion, up from ₤759 million a year ago.

!m[WPP Surges on Rivals Merger Talks, Barclays Leads Blue-Chip Fallers](/uploads/story/4405/thumbs/pic1_inline.jpg)
The FTSE is trading near eight-week highs after a recent nine percent rally propelled the index from its June lows. “Markets will continue to push higher, helped particularly by the $35 billion merger of Publicis and Omnicom, Aviva’s push into Indonesia, and Perrigo’s bid for Elan boosting market sentiment,” Mark Ward, head of trading at Sanlam Securities, said.
On the macroeconomic front investors will be looking at a report to be released at 15.00 BST, which may show that pending house sales in the U.S. slipped one percent in June, after climbing 6.7 percent the previous month.
**The FTSE 100 was 20.46 points or 0.31 percent higher at 6,575.25 as of 29.07.2013, 12.11 BST.**


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