M&A activity manages to shield FTSE 100 from worst of fallout from Ukraine as Russian markets take heaviest hit
- Strong suspicions Malaysian airlines was shot down by Russian rebels prompts fears of new confrontation with US
- FTSE 100 index this morning a further 37 points off at 6,701.3
- US and Asian markets all down overnight, while safe-haven gold jumps 1%
M&A activity managed to shield the FTSE100 from the worst of the fallout from Ukraine as the Russian markets took the heaviest hit.
Britain’s index of leading firms closed up only 11.13 points at 6,749.45, buoyed by an agreed bid by US giant AbbVie for pharmaceutical firm Shire.
Elsewhere, however, world markets were under pressure having fallen heavily on Thursday after a Malaysian airline appeared to have been shot out of the sky over Ukraine, killing all 298 passengers and crew on board.
European shares saw more selling and dollar-traded stocks in Moscow were down another 2.3 per cent taking their weekly losses to more than 8 per cent.
Asian markets were bumpy with most emerging Asian currencies falling and Japan’s Nikkei stock average tumbling 1 per cent.
The rouble recovered almost 0.5 per cent on Friday but was set for its biggest weekly loss in more than a year.
Defensive assets were still strong as traders flocked to gold and bonds.
However, gold dipped as buyers cashed in on some of a 1.5 per cent jump and the Japanese yen and US government bonds both gave some ground.
World leaders have demanded an international investigation into the tragedy in the Ukraine, which could mark a turning point in relations between Russia and the West.
Airline stocks rebounded as the immediate shock of the crisis wore off. British Airways-owner International Consolidated Airlines (down 0.8p to 329.9p) rose although Air France-KLM and Lufthansa fell.
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