UK Shares Advance as Intercontinental Jumps

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Forex Fundamental Analysis: Weak Data Weighs on EUR and AUD - June 3, 2014

UK Shares Advance as Intercontinental Jumps

UK stocks soared after stock markets opened after a holiday, as a gauge of US consumer sentiment added and orders for durable goods saw a surprise surge in the world’s largest economy.

Intercontinental Hotels Group Plc increased 3.4% after reports emerged suggesting the world’s largest hotel accommodation service dismissed an acquisition bid by an undisclosed US investor, Bloomberg reported. The firm stock stood at 2,302 pence, a high it has not hit since April 2003. Reports by Sky News suggested the company’s board had rejected a takeover attempt by a US suitor, dismissing it as too low. The offer valued the owner of Holiday Inn and Crowne Plaza brands at $10.1 billion.

Aveva Group Plc ascended 8.8% after its earnings beat forecast. AstraZeneca Plc plunged 1.8% after Pfizer Inc withdrew its takeover bid. While analyst had predicted per-share earnings of 85.5 pence, the company’s full-year adjusted earnings hit 89.05 pence. The company, which makes information-technology systems, said it was optimistic it would achieve its growth goals.

The FTSE 100 Index surged 29.19 points or 0.4% to 6,844 at the close in London. The FTSE All-Share Index, which is a broader indicator of stock performance, added 0.5% on Tuesday. The ISEQ Index of Ireland increased 0.3%.

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“I think the U.K. is playing catch-up after decent gains in Europe yesterday. The underlying macro story on the U.K. remains very good. Growing expectations of action from the ECB are generating optimism on European prospects,” said James Knightley of London-based ING Bank NV.

According to MarketWatch, Fresnillo PLC was the worst performing stock in the FTSE 100, going down 3.2% after the firm announced it was putting its TSB arm for offering on the London Stock Exchange in June, an action that regulators believe will enhance competition in the UK banking market.

ARM Holdings advanced 4% to 917 pence.

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To contact the reporter of this story; Jonathan Millet at john@forexminute.com