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* AstraZeneca jumps on completing Caelum Biosciences merger
* Retailer Next Group gains on raising profit guidance
* Upper Crust owner SSP Group falls on slow sales recovery
* FTSE 100 up 1.1%, FTSE 250 adds 0.1%
(Updates to close)
By Bansari Mayur Kamdar, Shashank Nayar and Amal S
Sept 29 (Reuters) - London's FTSE 100 ended higher on
Wednesday, as AstraZeneca boosted healthcare stocks on
completing a takeover deal to sharpen its focus on rare-disease
drugs.
AstraZeneca rose 4.2% and was the top boost to the
blue-chip FTSE 100 after the pharmaceutical company said its
newly acquired Alexion division would buy the remaining equity
in Caelum Biosciences in a deal that could be worth up to $500
million.
The FTSE 100 rose 1.1% to mark its best day in a
week. HSBC Holdings advanced 2.1% and led the banking
sub-index 1.7% higher, while Investec,
Natwest Group and Lloyds rose between 0.7% and
2.2%.
The blue-chip index has risen 10.1% so far this year on
highly accommodative central bank policies and optimism around
steady COVID-19 vaccination drives. But in September, it is set
to record its worst month since January this year as inflation
and economic slowdown worries weighed on investor sentiment.
"To counter the threat posed by rising prices they (central
banks) face the prospect of dialling down economic support at a
time of mounting uncertainty over the recovery," said Russ
Mould, investment director at AJ Bell.
The benchmark UK 10-year bond yield slipped on
Wednesday but has gained nearly 50 basis points in the past
eight trading sessions, as signs of a more persistent inflation
pattern raised bets of a sooner-than-expected interest rate
hike. Banks generally perform better in a higher interest rate
environment.
Britons have reported a first worsening in their financial
situation in more than a year as inflation pushes up the cost of
living, a survey showed.
The domestically focussed mid-cap index advanced
0.1%, with travel and leisure stocks among the
top gainers.
Among stocks, clothing retailer Next Plc rose 3.9%
after raising its full-year profit guidance.
Upper Crust owner SSP Group fell 5.4% over a slow
recovery as sales remained at half of the pre-pandemic levels.
Morrisons gained 1.4% on report that a $9.5-billion
fight for the British supermarket will be decided at an auction
on Saturday.
(Reporting by Bansari Mayur Kamdar, Shashank Nayar and Amal S;
Editing by Subhranshu Sahu and Marguerita Choy)