London pre-open: Stocks to edge down on last trading day before Christmas

by | Dec 24, 2021

London stocks were set to edge down on the final trading session before Christmas.
The FTSE 100 was called to open around 10 points lower.

Oanda analyst Jeffrey Halley said: “Markets continue to dismiss omicron because that’s what they want to believe, and the US data dump overnight had strong showings from the PCE Index, Durable Goods and Michigan Consumer Sentiment.

“Assuming omicron is a storm in a test tube, and I certainly hope it is, there was nothing to deter the Fed overnight. The omicron-is-mild rally could well continue into January now, but reality will bite in February I believe, as the end of the Fed taper moves into sight.

“Don’t discount omicron though, much of the developing world, including the author, were vaccinated with Sinovac which doesn’t appear to work against the new variant. We can also take off our western-centric blinkers and note that China is in the same situation, it will remain shut for all of 2022 now. And while rich countries continue with their vaccine and pill lolly scramble, the majority of the world will still provide fertile ground for more variants to emerge.”

In corporate news, consumer goods company Reckitt Benckiser has entered into an agreement for the proposed sale of the E45 brand and related sub-brands to Karo Pharma for an implied enterprise value of £200m.

Reckitt Benckiser said the proposed sale marked “another step forward” in its plan to actively manage its portfolio for higher growth, following the recent divestments of IFCN in China and the Scholl brand, as well as the acquisition of Biofreeze.

Outsourcing company Capita said it had sold its AMT Sybex software business to Jonas Computing for up to £40m.

AMT Sybex provides utilities and infrastructure software in the UK. Jonas will pay £23m on completion, scheduled for January 1, 2022. A potential £17m is payable over 24 months, subject to certain conditions, Capita said.

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