M&S reports on mixed quarter, Shire reassures on Baxalta

London open

The FTSE 100 is expected to rise 22 points on Thursday, extending its 70.4-point gain from the day before.

Stocks to watch

Fourth quarter sales at Marks & Spencer were up 1.9% in the fourth quarter as the food business outperformed the market but was again held back by weak clothing sales. New chief executive Steve Rowe said: "Although the sales decline in Clothing and Home was lower than last quarter, our performance remains unsatisfactory and there is still more we need to do."

Drug maker Shire has reassured investors that it is confident, even with new rules from the US Treasury to block 'tax inversion' deals, that its takeover of US-based Baxalta will proceed as planned. “The combination of Shire and Baxalta is based on a strong strategic rationale to create the leading global biotechnology company focused on rare diseases,” Shire said in a statement, adding that it expects to complete its proposed combination by mid-2016.

Home furnishings retailer Dunelm reported total revenue for the third quarter increasing by 5.9%, with like-for-like growth, up 1.1%. Gross margin for the quarter was 90 basis points higher than the previous comparative period, with the board putting this down to improved stock management and the reduced cost of end of season product clearance.

Newspaper round-up

David Cameron personally intervened in 2013 to weaken an EU drive to reveal the beneficiaries of trusts, creating a possible loophole that other European nations warned could be exploited by tax evaders. The disclosure of the prime minister’s resistance to opening up trusts to full scrutiny comes as he faces intense pressure to make clear whether his family stands to benefit from offshore assets linked to his late father. – Financial Times

Dutch voters opposed a trade deal between the EU and Ukraine by a margin of nearly two-to-one, in a result that could trigger ructions in Brussels and boost those in the UK campaigning for Britain to leave the bloc. Turnout breached the 30 per cent level required to force the hand of a government that had agreed to abide by the result if the threshold were passed. – Financial Times

Sajid Javid has said that he has received assurances from Tata that it will allow time to find a saviour for its British steelmaking business, including the Port Talbot plant. The business secretary said Tata will impose “no set time-frame” on the sales process and sought to assuage fears that the company could shut the loss-making Port Talbot steelworks within weeks after meeting its senior figures in Mumbai, including the chairman, Cyrus Mistry. – Guardian

The Federal Reserve is preparing to raise US interest rates yet again, despite the financial turmoil that gripped global markets after the central bank increased its rates last December. Members of the Federal Open Market Committee (FOMC), which decides on US monetary policy, were split on raising rates as early as this month, minutes of the committee’s last meeting have revealed. - Telegraph

US close

US stocks ended higher after minutes of the Federal Reserve's latest meeting showed several policymakers argued against an interest rate hike in April.

The Dow Jones Industrial Average closed up 0.64%, the S&P 500 rose 1.05% and Nasdaq increased 1.59%.

Members of the Federal Open Market Committee were concerned about the threat of slower global growth and low inflation when they voted to keep interest rates unchanged last month, the minutes of the central bank's March 15-16 meeting revealed.

Several also cautioned against an increase in April, saying it was signal a sense of urgency about the US economy that they did not think appropriate.