Market report

R&M bid deadline extended | market rebounds


5pm: Blue chips rise

Investors reacted positively to the latest moves to prop up businesses affected by the Omicron crisis.

At the close, the FTSE 100 index was 99.38 points higher at 7,297.41, the session peak, and well off the day’s low of 7,198.03.

8.10am: London opens higher

The FTSE 100 rebounded from yesterday’s sharp sell-off, as forecast, trading 66.37 points higher at 7,264.40. Analysts expect prolonged volatility while uncertainty hangs over the impact of the Omicron variant of Covid-19.

7am: Schroders Greencoat deal

Schroders is acquiring a 75% shareholding in Greencoat Capital Holdings, a major owner of Scottish wind farm assets, for an initial £358 million.

Greencoat is one of Europe’s largest renewable infrastructure managers, with £6.7 billion of AUM at 30 November.

Full story here

7am: Extension to River & Mercantile interests

Potential bidders for River & Mercantile, Martin Gilbert’s Asset Co and Premier Miton, have been given an extension until 18 January to decide whether to make an offer for the company.

R&M announced on 23 November that it had received preliminary approaches from the two firms who were given an initial deadline of 5pm today.

Discussions between the board and each of AssetCo and Premier Miton remain ongoing and the revised deadline may be extended further.

Global markets

Market volatility is expected to continue amid uncertainty over the impact of the Omicron variant. Spread betters were forecasting a reversal of yesterday’s FTSE 100 sell-off.

Jeffery Halley, OANDA’s Asia Pacific analyst, said: “A case in point is the Turkish Lira which had the mother of all rallies overnight, falling 11.0% intraday, but finishing the overnight session over 20% higher after President Erdogan announced new policy measures to protect the Lira savings from currency depreciation.”

Attention in London will be focused on any decisions by Downing Street to impose further restrictions as new measures are introduced across Europe.

Asia-Pacific shares rose on Tuesday thanks to a wave of short-covering lifting stocks.

The Nikkei in Japan led gains regionally, surging 2.08% while South Korea’s Kospi rose 0.41%.

China’s Shanghai Composite was 0.81% higher and Hong Kong’s Hang Seng gained 0.86%.

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