Green light for Tesco deal buoys FTSE

Market report Emma Newlands

The FTSE 100 avoided the declines suffered by its continental peers, cushioned by a weaker pound and a jump in Tesco’s share price after the supermarket giant received provisional approval for its £3.7 billion takeover of Booker.

London’s blue-chip index ended the day flat, down just 0.76 points at 7,414.42, while the pound rose around 0.2 per cent against the greenback to trade at $1.314 but was down 0.6 per cent versus the euro at €1.116.

Tesco shares rose 11.05p to 188.05p on news that it was given the provisional green light by the Competition and Markets Authority. Booker ended the day as one of the best performers on the FTSE 250, up 13.4p at 212p.

Sterlingspentmostofthedayintheredagainst both the US dollar and euro, but was mixed in late afternoon trading as investors digested UK inflation data. The Consumer Price Index measure of inflation came in at 3 per cent for October, unchanged from a five-year high in September.

In UK stocks, mining firms were among the worst performers after Chinese data covering fixed asset investment, industrial production and retail sales came in “below expectations and grew at a slower rate in the previous month,” said David Madden, a market analyst at CMC Markets UK.

ITV shares also sank, ending the day down 4p at 150p, after cautioning over an ongoing hit to advertiser confidence amid Brexit talks.

The biggest risers included Persimmon, up 52p at 2,709p, and NMC Health ,up53pat 2,853p. The biggest fallers included Rio Tinto, down 107p at 3,592p, and Anglo American, down 42p at 1,455p. Shares in the telecoms giant surged after it swung to profit and upped its growth outlook thanks to solid growth in Spain and Italy. The transport giant swung to a first-half loss in results described by one analyst as “mixed”, and hit by the impact of “severe” US hurricanes.