Morning Markets: FTSE sluggish despite utilities rally

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The FTSE was marginally down by 0.04% to 5186.60, despite strong gains by utilities in early trading.

A rally was sparked in the sector by speculation the Ontario Teachers' Pension Plan is planning a bid for Northumbrian Water Group. Northumbrian Water surged 12% after the Sunday Times reported it may be the subject of a £1.7bn bid. Severn Trent was up 3.82% to 1168p and United Utilities Group climbed 3.45% to 555p on the back of the news, despite both firms being downgraded by one notch by S&P following their acceptance of Ofwat's five year regulatory review and a reduction in dividend policies. Both are now rated BBB+ by S&P with a stable outlook. Ryanair Holdings Plc gained 5.2% af...

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