UK midcaps rose on Wednesday, boosted by strong earnings updates from companies such as Marks & Spencer and Softcat, while Vectura Group topped the mid-cap index after accepting a takeover by The Carlyle Group.
The domestically focused mid-cap index (.FTMC) advanced 0.6%. Vectura Group (VEC.L) jumped 31.6% and was on track for its best day ever after the inhaled drug-focused pharmaceutical company agreed to a £ 958million takeover (1, $ 36 billion) by global investment firm The Carlyle Group. Read more
Marks & Spencer (MKS.L) climbed 4.5% after the retailer said it was making progress on its turnaround plan, traded well in the first weeks of 2021-22 and that profits should pick up. Read more
Blue-chip FTSE 100 (.FTSE) edged up 0.1%, as specialty chemicals maker Croda International (CRDA.L) climbed 3% after Goldman Sachs improved stock to ‘buy’ to sell”.
However, the gains on the index were limited by a drop in heavy mining (.FTNMX551020) and banking (.FTNMX301010) stocks.
Asian stocks also rose after U.S. Federal Reserve officials reaffirmed an accommodative monetary policy, reassuring worried investors about the prospect of rising inflation, while hinting at debating a “tap.” “.
“Inflation concerns are always on the minds of average investors, but the frequently repeated comments by Fed officials that ‘rising inflation will not last long’ has a mesmerizing and calming effect on the market. sentiment, “said Ipek Ozkardeskaya, senior analyst. at Swissquote Bank.
“Robust growth is obviously good news for the recovery, but it is bad news for inflationary pressures, as improving economic activity also means higher positive pressure on price levels.”
The FTSE 100 index is up 8.9% year-to-date on optimism that rapid vaccine deployments and continued government political support will lead to a stronger recovery after a pandemic-induced recession .
Among other shares, Softcat (SCTS.L) added 4.7% after the IT services and consulting company said it expected annual results to exceed expectations.
Spire Healthcare Group (SPI.L) jumped 24.9% after accepting a takeover offer from Australian hospital operator Ramsay Health Care (RHC.AX) for around 1 billion pounds ($ 1.41 billion) .
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