FTSE Falls As Pharma and Telecom Sectors Under Pressure

Pharmaceutical and telecoms shares are in the spotlight as leading shares slip back after three days of gains.

The FTSE 100 is currently 17.90 points lower at 6401.25, with a weak Chinese property market, disappointing results from Amazon overnight and a confirmed case of Ebola in New York all helping to take the shine off shares. UK GDP has little effect so far, meeting expectations of a 0.7% rise. Mike McCudden at Interactive Investor said:

Despite some positive corporate and economic news the latest Ebola scare in the US has given nervous investors cause to retreat. With the risk of the virus spreading being very low this may appear to be an opportunity to invest. However, with on-going global economic concerns and upcoming data from the euro zone investors may be well advised to sit on the sidelines.

On the stock front, Amazon has not helped the outlook for the US open today after reporting a huge third quarter loss.

Shire is down 19p at £38.76 ahead of third quarter figures due later. US predator AbbVie recently called of its proposed bid for the company due to changes in tax inversion rules, so the results will be examined to see where Shire intends to go from here.

Meanwhile Hikma Pharmaceutical has dropped 105p to £17.95 after US regulator the Food and Drink Administration raised issues regarding its plant in Portugal. The warning letter follows an inspection by the FDA in March.

via The Guardian

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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