London investors will look to merger and acquisition news this week to drive share prices higher, alongside a smattering of corporate results and economic data.
The FTSE 100 index of leading London shares closed at 5,362.3 points on Friday, shedding 2.15 percent or 115.4 points from the previous week.
The index had closed above the 5,500-point level for the first time in four years on Monday, with news of merger plans by Boots and Alliance UniChem boosting the market.
However the FTSE fell heavily, in line with other global stock markets, during the remainder of the week on concerns about the outlook for the US economy amid expectations of higher US inflation and interest rates.
"European equities look attractive," noted ABN Amro analyst Rolf Elgeti.
"Merger and acquisition activity has become increasingly important in recent weeks, with speculation having boosted most sectors in the market."
"A further increase in corporate activity is likely over the coming months."
Possible take-over news this week could include Cadbury Schweppes, the British confectionery and soft drinks giant, which offered for sale last month its European beverages business, which includes the brands Schweppes, Orangina and Oasis.
Investors will also monitor BPB, the world's biggest plasterboard maker, which is in the midst of a hostile take-over battle with French rival Saint-Gobain.
Finally, any twist in the battle for control of Aegis, the British media and market research group, will be analysed by stock market watchers.
Trading updates from Burberry on Tuesday and parent group GUS on Wednesday will be closely examined for a reading on the state of the faltering British retail sector.
On the macroeconomic front, producer prices data is published on Monday, while unemployment numbers are due Wednesday.
Comments
Comments are closed.