US markets were closed on Thursday for the Thanksgiving holiday. Today trading is expected to be light with the market open for just half a day.
The Nikkei average rose in afternoon trade on Thursday, erasing losses that led to a fresh 16 month low, on buying of defensive shares such as Takeda Pharmaceutical and a retreat by the yen. Chugai Pharmaceutical jumped after the company and its Swiss parent, drugmaker Roche said they had submitted experimental Actemra drug to US authorities for approval to treat moderate severe rheumatoid arthritis in adults. Some participants said the upswing was largely due to a decline in selling rather than an increase in buying. The Nikkei average closed 51.1 points higher at 14888.8.
The FTSE100 rose 84.4 points on Thursday as bid activity buoyed utilities and a broker upgrade lifted pharmaceutical stocks. The index closed at 6155.3, as investors across the Atlantic were absent due to the Thanksgiving holiday. Among leading sectors, utilities supported the upside after Kelda Group said it had received a £3bn takeover approach from a consortium of infrastructure investment firms, sending its shares almost 15 percent higher. Kelda said the consortium comprised Citigroup Alternative Investments, CIG Special Investments, Infracapital Partners and HSBC and indicated it would offer 1,100.65 pence per Kelda ordinary share, comprising cash and an interim dividend. United Utilities, Severn Trent and Centrica all gained. Centrica was also boosted after ING started coverage with a "buy" rating and price target of 400 pence.
Glaxosmithkline added 5.3 percent, Astrazeneca rose 6.6 percent and Shire added 3.1 percent. Pharmaceuticals accounted for more than 23 points of the index rise after Citigroup lifted its rating on the European healthcare sector to "neutral" from "underweight", saying a lot of the bad news was now priced in.
With metal prices mixed, the mining sector lost ground with BHP Billiton, Xstrata and Antofagasta all down. But with credit fears put aside during the session, bank shares supported. HSBC added 1.2 percent, HBOS added 1.7 percent and Alliance and Leicester gained 4.6 percent. Northern Rock fell 0.8 percent, however, as Bank of England balance sheet data showed that the bank is likely to have borrowed a further £1.1bn from BoE in the past week.
Wm Morrison Supermarkets topped the FTSE100 leaderboard, adding 8.3 percent after it reported an acceleration in business in the third quarter at the top end of analysts forecasts. But CE Mark Bolland showed cautious optimism about the Christmas shopping season. Rivals Tesco and Sainsbury also rose.
Vodafone climbed 2.2 percent after losing 4.7 percent in the previous session and after the mobile phone company said it had bought back some shares.
British Energy added 7.1 percent after Goldman Sachs raised its price target.
The England soccer team's failure to qualify for the 2008 Euro cup championship dealt a blow to Sports Direct, issuing a profit warning and Umbro saying kit sales would suffer. Sports Direct fell 14.7 percent, while Umbro slipped 2.3 percent and JJB Sports lost 4 percent.