LONDON MARKETS: Heavyweight GlaxoSmithKline Soars On Deal, Helping Drive FTSE 100 Gains
December 19 2018 - 8:55AM
Dow Jones News
By Emily Horton
Tailwinds from optimism ahead of Fed meeting also help in
London
Lo
London markets rose Wednesday, buoyed by global optimism ahead
of a Federal Reserve meeting, while a deal in the pharmaceutical
sector triggered a rally for heavyweight GlaxoSmithKline Group
PLC.
How are markets trading?
The U.K.'s FTSE 100 gained nearly 1% to 6,768.01, while the
pound slipped to $1.2620 from $1.2639 on Tuesday.
What is driving the markets?
The outcome of the Fed meeting and any decision on interest
rates will come after the close of London markets. The central bank
is widely expected to hike rates, but there have been plenty of
calls for it to hold off. Among them is President Donald Trump, who
again urged the Fed Tuesday to hold off on hiking rates
(http://www.marketwatch.com/story/when-trump-tweets-about-the-fed-it-also-turns-up-heat-on-mnuchin-2018-12-17).
(http://www.marketwatch.com/story/when-trump-tweets-about-the-fed-it-also-turns-up-heat-on-mnuchin-2018-12-17)Inflation
in the U.K. cooled in November
(http://www.marketwatch.com/story/cooler-uk-inflation-brings-it-towards-boe-goal-2018-12-19),
bringing the annual rate closer to the Bank of England's 2% target.
The central bank indicated that it is ready to raise interest rates
three or more times in the next couple of years to contain price
growth, assuming Britain's exit from the European Union in March
goes smoothly.
Five big U.K. business groups issued a joint statement on
Wednesday
(https://www.reuters.com/article/us-britain-eu/100-days-to-brexit-businesses-warn-uk-of-no-deal-abyss-idUSKBN1OI0PX)
expressing "horror" over Brexit uncertainty, saying many companies
have been forced into pricey contingency plans, as the government
laid out plans for a "crash out," of the EU
(http://www.marketwatch.com/story/uk-conservatives-lay-groundwork-for-a-crash-out-brexit-while-labour-seeks-to-soothe-city-2018-12-18).
There was some upbeat news on the global trade front as Treasury
Secretary Steven Mnuchin said the U.S. and China will meet in
January to try to broker a cease-in the continuing trade dispute
(http://www.marketwatch.com/story/treasury-sec-mnuchin-says-us-china-will-meet-again-in-january-bloomberg-2018-12-19),
in an interview with Bloomberg on Tuesday.
What stocks are active?
Pharmaceutical company GlaxoSmithKline PLC (GSK.LN) led the
heavyweight gainers, with its shares rising nearly 7% on the news
that it will create a consumer-health-focused joint venture
(http://www.marketwatch.com/story/glaxo-pfizer-to-unite-consumer-health-businesses-2018-12-19)
with U.S. drugmaker Pfizer Inc. .
Resource stocks rose, with miner BHP Group (BHP.LN) up 1.3%, Rio
Tinto PLC (RIO.LN) (RIO.LN) rose nearly 2% and Glencore
PLC(GLEN.LN) rose by 1.5%. BP PLC (BP.LN) (BP.LN) rose 1%. The oil
giant could be looking to sell $3 billion in U.S. onshore gas and
oil assets, Reuters reported
(http://www.marketwatch.com/story/bp-may-sell-3-billion-in-us-assets-reuters-2018-12-19),
citing sources.
(END) Dow Jones Newswires
December 19, 2018 08:40 ET (13:40 GMT)
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