Trade tensions taking a toll on top-flight index

The FTSE 100 slipped into the red as trade tensions weighed on sentiment, although it pared back losses significantly after reports the US could delay slapping tariffs on Chinese goods.

London’s top flight closed 20.14 points lower at 7,213.76 at the end of trading yesterday.

The index of the UK’S biggest firms dived by almost 100 points in early trading, before a report in the Wall Street Journal helped to ease market fears.

The US newspaper reported that Beijing and Washington are laying the groundwork to delay the introduction of tariffs, set to launch on Sunday, giving both nations more time to discuss their respective red lines.

The major European markets also improved throughout the trading session, although German markets remained more pessimistic over trade concerns.

The German Dax decreased by 0.31% while the French Cac edged 0.11% higher.

Across the Atlantic, the Dow Jones moved into positive territory as Wall Street became cautiously optimistic.

Meanwhile, sterling nudged higher despite disappointing UK economic data for October as traders remained “quietly confident” of a Conservative majority tomorrow, according to Spreadex financial analyst Connor Campbell.

The value of the pound increased 0.13% versus the US dollar at 1.317 and dipped 0.08% against the euro at 1.187.

The price of oil was muted throughout the session, only nudging slightly higher over the reports of improving Us-china trade relations.

The price of a barrel of Brent crude oil rose by 0.34% to $64.28.