The FTSE 100 ended last week by getting a boost from the retail sector, and grocers could also help give the top flight a lift this morning.
Shares in FTSE 250 grocer Morrisons gained 11.8p to 291p on Friday after it emerged the chain’s board had accepted a £7 billion proposal at 285p per share from private equity group Clayton, Dubilier & Rise. A profits upgrade from Marks & Spencer also impressed, and investors piled into FTSE 100 businesses including Tesco and Sainsbury’s.
Sainsbury’s could potentially make further gains after the Sunday Times said that private equity giants are circling the grocer, with a view to possibly launching bids of more than £7 billion.
The report added that investment group Apollo “is said to be running the rule over Britain’s second-largest supermarket chain”.
The FTSE 100 ended Friday up 27.04 points, or 0.41%, at 7,087.9. Today CMC Markets traders have called it to open 32 points higher.
Michael Hewson, chief market analyst at CMC Markets UK, said: “The highlight of this week is the start of the Jackson Hole annual symposium, which late last Friday went from a limited in person program to a fully virtual event, due to “recently elevated Covid-19 health risk in Teton County, Wyoming.””
He added: “The main focus will likely be on whether we get any detail on discussions on the tapering of asset purchases as we look towards the back half of 2021.”
In other news, Paypal today revealed the launch of a new service enabling its customers in the UK to buy, hold and sell cryptocurrency with it.
The update came on the same day that Bloomberg reported that Bitcoin topped the closely watched $50,000 level again “in an ongoing recovery in the cryptocurrency market from a disorderly rout just three months ago”.