Reports of a takeover bid for the London Stock Exchange Group PLC (LON:LSE) by its Hong Kong Exchang (HK:0388) counterpart helped the FTSE 100 best its peers on Wednesday.
At its peak jumping 15%, before settling for a slightly less impressive 6% increase, the LSE provided the main thrust of the UK index’s afternoon gains. The FTSE added 1.1%, pushing it above 7340 for the first time since the start of August, and leaving it with a good chance of closing the right side of 7300, something it has struggled with since September began.
Though the FTSE was far and away the day’s biggest winner, the Eurozone indices still put a solid shift in. Anticipating that Mario Draghi will bestow upon the region a new round of stimulus as his departing present, the DAX and CAC 40 climbed 0.7% and 0.5% respectively.
While trade war optimism has been given as a reason to explain Wednesday’s gains, it wasn’t enough for the Dow Jones to come out of the gates hot. Nevertheless, its meagre 0.2% rise still pushed it towards 26950, a level last seen at the end of July.
It was a mixed session for sterling, suggesting that some non-Brexit news took hold despite the Scottish courts ruling that Boris Johnson’s prorogation of parliament is unlawful. Against the dollar it fell 0.2%, the greenback aided by a better than forecast PPI reading; against the euro, however, it jumped 0.3%, the single currency fretful ahead of Thursday’s ECB meeting.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved.