* FTSE 100 up 1 pct, FTSE 250 up 0.6 pct
* GSK gains on Pfizer (NYSE: PFE ) joint venture and plans to split co
* Royal Mail tumbles after weak FedEx (NYSE: FDX ) results
* Struggling airline Flybe soars on takeover news
* Oil stocks, miners, gambling cos gain (Adds company news items, quotes, updates moves)
By Muvija M and Helen Reid
Dec 19 (Reuters) - Pharmaceuticals giant GSK helped Britain's main bourse break a three-day losing streak even as all eyes were on the Fed, ahead of a key announcement that will set the course of interest-rate hikes in the world's largest economy.
The biggest winner was GlaxoSmithKline GSK.L , which rose 4 percent after saying it would combine its consumer health business with Pfizer's PFE.N in a joint venture with sales of 9.8 billion pounds ($12.41 billion). rose as much as 8.3 percent earlier in the session after announcing plans to split into two businesses - one for prescription drugs and vaccines, the other for over-the-counter products. the macro space, investors were on tenterhooks waiting for signs from the Fed later in the day on the number of U.S. interest-rate hikes next year.
Oil and related stocks provided the biggest support to the FTSE 100, with industry heavyweights Shell (LON: RDSa ) RDSa.AS and BP BP.L rising over 1 percent as crude prices bounced back following steep losses on oversupply worries.
Copper also rose on hopes the U.S. central bank would slow the pace of interest rate rise, leading to miners Rio Tinto RIO.L , Glencore GLEN.L , BHP BHPB.L and Anglo American AAL.L rising more than 2 percent. Just Eat JE.L rose 1.9 percent as Liberum analysts expressed confidence in the takeaway group's strategy and said a takeover or a go-private deal could be on the cards after calls by a shareholder this week for asset sales. the red was postal services group Royal Mail RMG.L , down 2.4 percent after weak results from FedEx FDX.N in the U.S. dented sentiment across the post and logistics sector. ASOS's profit alert on Monday shook the retail sector, FedEx provided the latest window into the effects of weaker consumer sentiment impacting not only retailers but also companies charged with delivering purchases.
Royal Mail, the century-old UK firm, is set to lose its FTSE 100 status later this week.
On the Brexit front, the government said it would implement plans for a no-deal scenario in full, even as Prime Minister Theresa May is set to bring her divorce deal back to the parliament for a vote in mid-January. the March 29 date for departure from the European Union fast approaching, there is still little clarity on how things will pan out, with factions pressing for different options for future ties, leaving without a deal or remaining in the EU.
But investors shrugged off those worries for the time being and concentrated instead on the Fed decision.
"Despite the negative sentiment, it's unwise to bet on the direction of the stock market in the short term, as it's prone to defy expectations, sometimes for the better, sometimes for the worse," Hargreaves Lansdown (LON: HRGV ) analyst Laith Khalaf said.
"We're unlikely to see the gloom lift in January. Brexit looks set to reach a parliamentary crescendo, and a swathe of trading updates from the UK high street isn't likely to lighten the mood."
Shares in gambling companies 888 Holdings 888.L and Rank Group RNK.L rose 6.9 percent and 6.1 percent, respectively, and were among the top mid-cap gainers after an upbeat trading update from the former. smaller stocks dealmaking was also a driver, with airline Flybe Group FLYB.L jumping 10.5 percent after Virgin Atlantic said talks about a potential takeover offer were ongoing. has roughly doubled in market value since Sky News broke the news on the takeover talks in late November - but the struggling airline has still sunk 43 percent this year as profit warnings took their toll on the share price.
Small-cap Gulf Marine Services GMS.L plunged 74.7 percent after the support vessels maker said it expects to be in breach of some banking covenants at the end of this year. YU Group YU.L , a gas and electricity supplier, fell 27 percent to an all-time low after it said the UK's financial watchdog was planning to investigate some of the company's announcements from this year. ($1 = 0.7896 pounds)
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.