Leading shares have fallen back ahead of the Bank of England’s latest rate decision and inflation report, amid concerns that the US will sanction dearer borrowing in December.
But AstraZeneca and RSA Insurance are bucking the downward trend after well received updates.
AstraZeneca is up 124p at 4251.5p as the pharmaceutical group lifted its full year revenue and earnings forecasts, despite some of its top sellers seeing falling sales. The company, which saw off a $118bn takeover bid from Pfizer last year, said third quarter revenue fell 10% with earnings per share down 2%, but these figures were in line with expectations. Key products such as heartburn drug Nexium and cholesterol treatment Crestor face growing generic competition, and chief executive Pascal Soriot said:
2016 will be a pivotal year in our strategic journey. Looking ahead, however, the continued performance of our growth platforms and upcoming launches will combine with our increasing focus on costs and cash generation to help offset short-term headwinds and return AstraZeneca to sustainable growth.
Jefferies analysts said:
AstraZeneca is our top pick in European Pharma, with the promise of a rapidly building tempo of pivotal data (durva, treme, benra, Lynparza) and FDA approvals (Lesinurad, PT003, AZD9291, druva, treme) over the next 12 months.
Other drugs groups are also on the rise, with Shire up 70p at £47.79 and Hikma Pharmaceuticals 23p higher at £20.71.
Meanwhile RSA is up 11.9p at 427p after the insurer said underlying premium income rose 1% in the first nine months of the year, despite the distractions of a takeover attempt by rival Zurich Insurance.
Housebuilders have recovered some ground after recent falls, with Barratt Developments up 5.5p at 578.5p.
Elsewhere BP is down 11.2p at 390.85p as its shares go ex-dividend, while Barclays is 2.9p lower at 229.45p for the same reason.
Morrisons has slipped 5.7p at 171.8p after third quarter like for like sales fell 2.6%, excluding fuel.
Overall the FTSE 100 has fallen 35.40 points to 6377.48, as Federal Reserve chair Janet Yellen suggested a December rate rise was still on the cards.
