Reply #7: Insurers put London stocks under pressure

[ozymandius]

London equities fell in early trade on Friday, with life insurers under pressure after Aviva confirmed it was in talks to buy a US peer and traders were in cautious mood ahead of influential American employment data.

The FTSE 100 started the day 0.2 per cent weaker at 5,878.0 with the mid-cap FTSE ticking 0.1 per cent higher to 9,469.9.

New York indices closed in positive territory overnight, as the tobacco sector rose after a favourable legal ruling. The Dow Jones Industrial Average closed up 0.7 per cent at 11,225.30. Investors' attention was ready to return to the US for the closely-watched non-farm payrolls number due out at 1330 London time. The job-creation data is widely thought to provide one of the best indications into the performance of the world's biggest economy.

Back in London, and life insurance companies took centre stage after Aviva confirmed an FT report that it was in talks relating to a potential offer for US peer AmerUS. The potential spending spree sent shares in the operator of the Norwich Union brand down 2.7 per cent to 733p.

more