We’re Intu the Money

Friday, 5th October: It was a downbeat end to the week for global markets, as European shares followed a poor Asian session overnight. The FTSE closed 1.35% lower, hit from a fall in the oil price and resilience in the strength of the pound. During September Russia and Saudi Arabia increased output which sent the oil price lower than its recent near 4-year high mark. The knock-on impact on London trading floors saw miners struggle, with Ocado splitting the majority of the sector at the index floor, with Antofagasta worse off, down 5.44%.

The main story on the LSE today was the possibility of a takeover for Intu, which sent shares almost 30% higher. The Speculation involves a bid from a private British consortium and it follows the scrapped bid from rival Hammerson earlier in the year. The bid helped sector peers higher, with Hammerson in silver place on the FTSE 250 with shares up 2.7% and on the ‘100 British Land closed 1.5% higher.

Shares usually remain subdued ahead of the US jobs report, but today we saw a little more action due to the oil price volatility. On release, figures have shown the US jobless rate has fallen to its lowest rate since 1969, to 3.7%. 134,000 jobs were created during last month, lower than expected but on the whole indicators remain strong. Despite the news Wall Street looks set to join the rest of the world with losses to end the first week of the final quarter.

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