Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.
(Sharecast News) - London's FTSE 100 was down 0.3% at 10,835.18 in afternoon trade on Monday.
Smith & Nephew shot higher ahead of half-year results on Tuesday.
Housebuilders Persimmon and Barratt Redrow were among the top performers as investors scaled back rate hike expectations after the slump in oil prices.
On the downside, IG Group suffered heavy losses again, having fallen sharply on Friday on news it will buy US daily fantasy sports and prediction markets operator Underdog for up to $1.3bn.
AstraZeneca slid following a report it's in talks to combine with US rival Bristol Myers Squibb in a deal that would create one of the world's biggest pharmaceutical groups, valued at nearly $400bn.
According to the Financial Times, citing people familiar with the matter, the companies have held discussions about a tie-up in recent months. It was understood the talks could yield a deal in the near future but may be delayed or fall apart.
The FT said the exact structure of any deal could not immediately be determined, but would probably require both cash and shares.
Jefferies, which rates AstraZeneca at 'buy' with a 17,500p price target, said a tie-up between the two "would be more than a head scratcher".
"Given the strength of AZ's growth and innovation profile, we are a bit perplexed by the news," it said. "Of course financial accretion can look good and maybe more cash generation would allow for more R&D. But if there is one company that doesn't need financial engineering, it's AZ in our view."
BP was in the red as oil prices tumbled after Donald Trump said US talks with Iran would resume on Monday.
FTSE 100 - Risers
Smith & Nephew (SN.) 1,204.00p 3.88%
Persimmon (PSN) 1,142.00p 3.43%
The Sage Group (SGE) 1,003.50p 3.32%
Barratt Redrow (BTRW) 301.70p 3.14%
Kingfisher (KGF) 317.20p 2.88%
Rolls-Royce Holdings (RR.) 1,503.20p 2.67%
Relx plc (REL) 2,671.00p 2.65%
St James's Place (STJ) 1,079.00p 2.52%
Convatec Group (CTEC) 229.00p 2.32%
Spirax Group (SPX) 7,105.00p 2.30%
FTSE 100 - Fallers
IG Group Holdings (IGG) 1,327.00p -9.45%
AstraZeneca (AZN) 11,718.00p -7.54%
Glencore (GLEN) 533.90p -1.60%
BP (BP.) 543.10p -1.57%
Anglo American (AAL) 3,671.00p -1.53%
Airtel Africa (AAF) 328.20p -1.44%
Coca-Cola HBC AG (CDI) (CCH) 4,938.00p -1.36%
British American Tobacco (BATS) 4,511.00p -1.27%
Sainsbury (J) (SBRY) 355.10p -1.25%
Hiscox Limited (DI) (HSX) 1,788.00p -1.16%
