The FTSE 100 started this week in decent shape, up 0.38% at the time of writing, after Asian stocks managed to squeeze out some gains overnight.
“M&A remains in focus amid weekend reports of a private equity bid for Sainsbury’s, begging the question will there be any companies left at the end of this corporate raiding exercise?” said Dannie Hewson, financial analyst at AJ Bell.
“The takeover chatter helps underling appeal of the UK supermarket sector to overseas bidders, following the battle for Morrisons, but further transactions could raise questions about having such key components of the country’s food security in the hands of overseas private equity firms.”
Bitcoin continues its recent rally, climbing above the $50,000 mark it last reached in May though still some way short of its $65,000 all-time-high as PayPal announced plans to launch its cryptocurrency trading platform in the UK.
“Earlier in the summer speculation that Amazon might be about to step up its involvement in bitcoin off the back of a key hire also gave it a boost,” according to Hewson.
FTSE 100 Top Movers
Sainsbury’s is well ahead of the pack following rumours over a potential private equity bid (11.7%), followed by Burberry (3.27%) and Prudential (3.13%).
At the other end of the FTSE 100 during the morning session on Monday is BT Group (-2.71%), Hikma Pharmaceuticals (-1.82%) and United Utilities Group (-1.52%).