FTSE outperforms on softer pound Apple weighs on Wall Street

A weaker pound lifted the FTSE on the open and the index managed to hold onto this gains across the session, despite weakness from Reckitt Benckiser following weaker than forecast revenue and Shire paring some gains from the previous session as the takeover battle evaporated almost as quickly as it arrived.

With the withdrawal of Allergan from the pursuit of Shire, the takeover battle was over, however Japanese Takeda was in no mood for giving up after having their bid on a Thursday rejected and today they lifted the offer to £47 per share, up from £46.50 and valuing the firm at £42.8 billion. 

On news of the lifted offer Shire’s share price increased although remain down 2.5% on the day.

Pound continue’s to fall

The pound, which has plummeted over 300 points since its peak on Tuesday, continued to drift lower as investors digested the week’s events; a hat-tick of weaker than forecast high impact releases and a warning by Bank of England Governor not not bet on a May interest rate rise. 

A disappointing week by any stretch and one that sees the pound edging within touching distance of $1.40.

Higher yields and weaker Apple pulls Wall Street lower

US treasury yields have continued climbing on the final trading session of the week, boosting the dollar whilst dampening the mood for US equities. 

With help from a 3% loss on Apple, Wall Street edged lower in early trading, with the Dow and the S&P down 0.5% Concerns over higher inflation boosted yields a few months ago causing a correction in US equity indices. 

So far investors haven’t been responding with the same vigour as in February, but there is certainly a nervousness on the trading floors, which when combined with the fears over smart phone sales is preventing the markets from responding well to stronger than forecast earnings from GE.

EUR/USD to $1.2250?

Higher yields boosting the dollar and damaging comments from the President of the German Central Bank, Weidmann, has pulled the EUR/USD down 0.6% to $1.2270 as it looks to target $1.2250. 

Weidmann commented that Q1 growth for Germany was not brilliant, doing little to quell fears over slowing momentum in the eurozone as a whole.