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FTSE slips lower as gold and oil fall

by LLB Editor
9th Aug 21 12:00 pm

The FTSE 100 dipped modestly on Monday after weak Chinese trade figures and with few other company or economic updates to funnel sentiment in any particular direction.

“Much of the action centred on the M&A arena. Tobacco giant Philip Morris launched a hostile takeover bid of more than £1 billion for inhaler specialist Vectura, a US private equity firm planted the seeds for a bidding war on supermarket Morrisons with a request for extra time to make an offer and a German rival took a stake in takeaways platform Deliveroo.

“The continuing global corporate raid on UK plc suggests overseas parties still see significant untapped value in the London stock market,” says AJ Bell financial analyst Danni Hewson.

“In the commodities markets both gold and oil took a hit overnight – with the precious metal dropping to a five-month low and crude falling on fears that lingering travel restrictions will hit demand.

“Given that much of 2021 has been dominated by mounting concern over the impact over inflation and gold has traditionally offered protection against rising prices, fans of the precious metal will be particularly disappointed by its high single-digit slide in percentage terms year-to-date.”

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