Fears about the introduction of price controls on drugs in the US have pushed the FTSE 100 index down this morning, as such a move is likely to have an impact of the profitability of GlaxoSmithKline.
The FTSE 100 index is down 18 points or 0.3% to 6,212.6, dragged down in the main by GlaxoSmithKline, Europe's biggest pharmaceutical firm, which is down 20p, or1.44% to £13.66 and AstraZeneca, its closest rival, which also dropped 78p or 2.5% to £29.97 as the Senate is likely to cut the price of medicare in the US.
British Airways has also slipped on an oil price increase, as the price of a barrel of crude jumped 2.2% to $61.16 a barrel in New York yesterday because US officials say diesel availability has dropped. It share value is down 4p or 0.87% to 454p.
In contrast, however, mobile phone operator Vodafone is up 0.75p or 0.5% to 134.75p on the back of improved short-term ratings for their profitability and Sainsburys has seen strong gains, up 11p or 2.66% to 425p.
In Asia, the Hang Seng index fell back, having risen on the back of property firm but which are now heading south as concerns about their long-term prospects as a share investment.
Hong Kong's Hang Seng index fell 0.3% from a record, led by Sun Hung Kai, the region’s largest property developer, which fell 1.5% to HK$90.25, Henderson Land Development, the third largest, dropping 0.9% to HK$46.05 and Hang Lung Properties, the fourth biggest, sliding 1.9% to HK$16.40.
There are also concerns economic growth in Japan may also slow considerably, knocking the Nikkei 225 down 0.5% to 16,112.43 by close of business.
And in the US yesterday, Wall Street sparked the worries about drugs controls and pushed the value of pharmaceutical firms downwards, as a result of price pressure the Senate is now expected to place on healthcare.
Merck & Co, Johnson & Johnson and Pfizer all weighed heavy on the S&P 500 index, dragging the index down 7.3 points or 0.53% to 1,378 while the Dow Jones index closed down 73.24 points or 0.6% to 12,103 and the Nasdaq ended down 8.93 points or 0.37% to 2,376.
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