U.K. stocks rose on Tuesday as an advance in oil shares pushed the blue-chips index to a sixth consecutive advance and helped it outperform the broader European equity market. A rally for Shire shares after a fifth takeover proposal from Takeda also helped lift U.K. stocks. The FTSE 100 index rose 0.4% to end at 7,425.40, closing above the 7,400 level for the first time since early February. The pound bought $1.3970, recovering from an intraday low of $1.3918, and rising from $1.3939 late Monday in New York. Also: Here’s why the pound got whipped this week—and why it may bounce back to $1.44 Oil companies were among the best performers, riding on the back of higher oil prices. The moves came as Brent crude prices traded above $75 a barrel, the highest since 2014, as tensions between Saudi Arabia and Yemen heated up. Also, speculation that U.S. sanctions on Iran will be put back in place in May helped push up Brent and oil prices. The rally for oil stocks also helped offset weakness from news that U.S. 10-year yields jumped to the psychologically important 3%. Higher yields typically weigh on stocks as bonds start to offer better returns than equities and push up borrowing costs for companies.
The moves in the U.S. knocked European stocks lower, with the Stoxx European 600 index ending down 0.02% after trading at a more than two-months high earlier in the session. Shire PLC shares jumped 3.4% after Japanese drug maker Takeda Pharmaceutical made a fifth takeover proposal for its U.K. rival. None of the companies disclosed the financial
terms of the proposal, but the value of the rare-drug specialist is expected to be abpt more than $60 billion.
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