(For a Reuters live blog on U.S., UK and European stock
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* Morrisons shares drop on $9.5 billion takeover
* Trading platform Plus500 gains on strong forecast
* AstraZeneca up on breakthrough designation for drug
* FTSE 100 down 0.2%, FTSE 250 off 1.3%
(Updates to close)
By Shashank Nayar and Bansari Mayur Kamdar
Oct 4(Reuters) - London's FTSE 100 index fell on Monday as
weakness in financial and travel-linked stocks offset a bounce
in energy, while Morrisons dropped after private equity firm
Clayton, Dubilier & Rice (CD&R) won a bid for the company.
The blue-chip FTSE 100 index ended 0.2% lower,
extending losses for the third straight session, weighed by
weakness in financials including HSBC, Prudential
and Lloyds Group.
Morrisons declined 3.8%, its worst single-day fall
since September last year, after U.S. private equity firm CD&R
won the auction for Britain's fourth-largest supermarket with a
7 billion pound ($9.5 billion) bid, only marginally above its
285 pence a share offer, already recommended in August.
Peer Sainsbury's rose 3.3% on hopes that SoftBank's
Fortress Investment could turn its attention to the
company after losing the bidding war for Morrisons.
The domestically focussed mid-cap index fell 1.3%,
closing at over a two-month low, led by declines in consumer
discretionary stocks.
The FTSE 100 is up nearly 8.5% so far this year on
accommodative central bank policies and re-opening optimism.
The index is, however, 2.3% below the highest point hit this
year as inflation risks and signs of slowing local and global
economic growth have weighed on investor sentiment.
"Inflation continues to underpin market sentiment, with
fears over a protracted period of above-target prices bringing
expectations of a dramatic rerate in monetary policy
expectations," Joshua Mahony, senior analyst at IG Group, said.
"Investors are growing increasingly fearful that the
November and December period is characterised by a lack of
supply and higher prices."
Limiting further losses were heavyweights BP and
Royal Dutch Shell, up 2.1% and 2.2% respectively,
tracking a jump in crude prices.
Among other stocks, AstraZeneca rose 0.8% after its
breast cancer drug, Enhertu, received a breakthrough therapy
designation.
Online trading platform Plus500 rose 1.8% after
raising its forecast for the second time in less than three
months.
(Reporting by Bansari Mayur Kamdar, Shashank Nayar and Amal S;
Editing by Sriraj Kalluvila and Andrew Heavens)
