Thursday Morning Markets: FTSE Edges Lower as Rotork Rockets on ABB Takeover; Ocado Slumps

London’s FTSE 100 is down around 0.4% in early trading on Thursday, though the FTSE 250 edged up 0.1%. 

Meanwhile, on the continent, Germany’s DAX and France’s CAC 40 have both dropped 0.5%, while the Euro Stoxx 50 has slipped 0.3%.

In commodities markets, Brent crude has eased around 0.5% despite the latest wave of U.S. strikes on Iran, while spot gold has fallen 0.7% to $4,033 an ounce, with the yellow metal struggling for direction over the past few sessions.

Takeovers have dominated the morning so far…

Rotork (LON: ROR) has surged 66.85% after Swiss engineer ABB agreed a recommended £4.1 billion cash offer at 506 pence per share, which is a 73% premium to Wednesday’s close and ABB’s largest-ever acquisition. 

Separately, AIM-listed photonics specialist Gooch & Housego (LON: GHH) has agreed a recommended cash acquisition by Greenlight Bidco, a newly formed company owned indirectly by Arlington Capital Partners.

The deals helped lift Diploma (LON: DPLM) 3.69%, Weir Group (LON: WEIR) 1.74% and Spirax (LON: SPX) 1.58% to the top of the FTSE 100.

Experian (LON: EXPN) is leading the blue-chip fallers, down 3.91%, ahead of St James’s Place (LON: STJ), off 3.65%, and Polar Capital Technology Trust (LON: PCT), down 2.04%.

Elsewhere in the FTSE 250, Funding Circle (LON:FCH) jumped 14.41% on its half-year trading update, which showed continued growth momentum, with revenue in H1 growing 50% year-on-year to £138 million.

Dunelm (LON: DNLM) has added 3.91%.

Ocado (LON: OCDO) has plunged 15.14% after half-year results showed headline revenue up 54% to £1.04 billion, flattered by £354 million of one-off Kroger and Sobeys termination payments. 

Trustpilot (LON: TRST) has dropped 9.56% following its half-year trading update, with the company reaffirming its annual guidance.

Frasers Group (LON: FRAS) is down 5.64% after full-year results showed adjusted pre-tax profit down 4% to £538 million, hit by higher impairments and interest costs.