FSTE Steady as Jackson Hole Meeting Has Spotlight

As shares drifted ahead of this evening’s gathering of central bankers in Jackson Hole in the US, there was still a spate of takeover speculation to liven up a quiet morning.

Vodafone has added 1.9p to 204.5p on renewed talk that US rival AT&T might be preparing an offer for the UK mobile phone group. In January AT&T was forced to say it had no plans to bid, ruling it out for six months. That deadline has, of course, now passed.

Meanwhile AstraZeneca is up 34p at 4445.5p, as investors were reminded that thwarted suitor Pfizer could come back next week – if invited to do so by AstraZeneca. However that seems a little unlikely, given the UK group’s hostility to the initial offer. Analyst Savvas Neophytou at Panmure Gordon said:

The stock was strong yesterday, on a news story that on 26 August Pfizer may be able to make another approach for AstraZeneca by being invited by Astrazeneca’s board to bid (VERY unlikely in my view).

The prospects of renewed hostilities next week are remote, but AstraZeneca remains an attractive bid candidate which may attract interest after 26 November [when Pfizer could return without AstraZeneca’s recommendation}. We re-iterate our hold recommendation and 4,400p target price.
Overall the FTSE 100 has edged up 2.10 points to 6779.76, with investors cautious ahead of the US meeting, awaiting signs from both Federal Reserve chair Janet Yellen and European Central Bank boss Mario Draghi on the outlook for rate rises (in the case of the US) or stimulus measures such as quantitative easing (from the Europeans).

via The Guardian

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza