The FTSE 100 made a quiet start to the week, with the UK index up by 0.2% to 7,137 points.
The FTSE 250 fared slightly better with a 0.54% as markets in mainland Europe were generally down.
“Markets paused for breath ahead of the second quarter earnings season which begins towards the end of the month. We’re now in a short period with limited corporate news to drive trading volumes,” said Russ Mould, investment director at AJ Bell.
“Second quarter numbers may show divergent fortunes. Investor expectations have arguably been too high for many sectors including travel and leisure, and there could be some disappointed shareholders once the next set of figures are out, particularly if the outlook isn’t as rosy as they hoped and that leads to earnings downgrades.”
Brent Crude oil nudged ahead 0.3% to $76.41 per barrel as oil producers’ cartel Opec will today continue talks about increasing output. “Failure to strike a deal could push up the price of oil further, adding inflationary pressures to businesses and consumers around the world,” Mould added.
FTSE 100 Top Movers
IAG (2.98%), Sainsbury (1.97%) and Barclays (1.65%) are leading up the FTSE 100 less than two hours into the Monday session.
At the bottom end, Just Eat (-1.8%), Aveva Group (-1.76%) and Polymetal International (-1.36%) are trailing the rest of the pack on the UK index.
Morrisons
Morrisons looks set to be taken over following a bid of £6.3m for the supermarket chain by a consortium that appears to have beat the competition to the finish line.
Fortress, the private equity firm leading the takeover race, seems to be at the front of the pack following its 254p-per-share offer.
Back in June, Morrisons rejected an offer of £5.5bn from a different consortium, adding that it was an undervaluation of the company.