FTSE to take cue from Asia’s perky performance with TikTok deal settling nerves

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The FTSE 100 looks set to open the new trading week in positive territory, taking its cue from Asia’s main markets.

A technical deal that will effectively give Oracle control of TikTok’s US operation was the catalyst for the early positivity.

While not a full-blown takeover of the video app group, the agreement addresses national security concerns and therefore prevents further deterioration in Sino-American trade relations, analysts said.

It has been a weekend dominated by M&A activity with the US$40bn sale of UK group ARM Holdings by the Japanese investment firm Softbank to chipmaker Nvidia vying with TikTok for top billing on the business pages.

In the drugs sector, Gilead has unveiled plans to splash US$20bn on a cancer drug maker Immunomedics.

Looking ahead, we have corporate updates from Ocado (LON:OCDO) – where interest will focus on its tie-up with Marks & Spencer (LON:MKS) – builder Redrow (LON:RDW), retailer Games Workshop (LON:GAW) and ticket service Trainline (LON:TRN).

The week will also see central bankers in Washington and London provide their pandemic commentary, though there is little likelihood to changes in interest rates either side of the Atlantic.

“With the latest Federal Reserve rate meeting later this week, there is a risk that in outlining their plans for their new policy of average inflation targeting that the US dollar might well weaken further,” said Michael Hewson of CMC Markets.

Around the markets

  • Pound worth US$1.2819 (up 0.18%)
  • Gold US$1,947.56 an ounce (up 0.36%)
  • Brent crude US$39.92 a barrel (up 0.23%)

6.45 am: Early Markets: Asia / Australia

Stocks in Asia Pacific were trading higher after Japanese conglomerate SoftBank Group Corp (TYO:9984) announced the sale of UK chip designer Arm to Nvidia in a $40 billion deal.

South Korea’s Kospi jumped 1.19% and in Japan, the Nikkei 225 rose 0.61%.

Mainland Chinese stocks were higher with the Shanghai composite up 0.15% while Hong Kong’s Hang Seng index added 0.60%.

Australia’s S&P/ASX 200 gained about 0.52% thanks to gains for miners Rio Tinto and BHP.

Proactive Australia news:

Blackstone Minerals Ltd (ASX:BSX) has received firm commitments from sophisticated, professional and institutional investors to raise up to $17.8 million through a placement of 42,426,356 fully paid ordinary shares at an issue price of 42 cents per share.

Jindalee Resources Ltd (ASX:JRL) has received firm commitments from sophisticated and professional investors to raise $1.23 million as part of a $1.85 million capital raising to primarily accelerate exploration and development at McDermitt Lithium Project in the US.

Roots Sustainable Agricultural Technologies Ltd (ASX:ROO) has signed a letter of intent (LOI) with smart technology provider, Humboldt CCTV, to distribute the Root Zone heat exchange device kits in Northern California.

Kingston Resources Ltd (ASX:KSN) has received further strong results of up to 31 g/t gold within broader zones of mineralisation from recently completed reverse circulation (RC) drilling at Kingsley prospect within the Livingstone Gold Project in WA.

Salt Lake Potash Ltd (ASX:SO4) (LON:SO4) is confident its Lake Way Project near Wiluna in Western Australia is on schedule to deliver first SOP production in the March quarter of 2021.

PolarX Ltd (ASX:PXX) has extended the known gold-copper mineralisation a further 320 metres along strike at the Zackly East prospect in Alaska during step-out diamond drilling.

SenSen Networks Ltd (ASX:SNS) (OTCQB:SNNSF) has been accepted to join the OTCQB Venture Market based in New York, USA, which is expected to enhance its push into the US market after customer wins in that market.

Kin Mining NL‘s (ASX:KIN) new East Lynne aircore (AC) drilling results point to a large mineralised sulphide system over a 3.2-kilometre strike length within the Cardinia Gold Project (CGP) in WA.

Ironbark Zinc Limited (ASX:IBG) has declared a maiden JORC 2012-compliant ore reserve for the underground deposit of its flagship Citronen Zinc-Led Project in Greenland of 21.3 million tonnes at 6.3% zinc equivalent containing 1.3 million tonnes of zinc metal and 100,000 tonnes of lead metal.

Netlinkz Limited (ASX:NET) has recorded very strong revenue growth in the financial year 2020 after undergoing a major transformation, including setting up a solid platform that underpins continued growth and evolution into a leading virtual secure network (VSN) company for blue-chip corporations and government.

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