Markets fall as tensions offset promising data

The London markets drifted into the red as continued concerns over the US-China relationship outweighed promising UK economic data.

The latest set of retail sales figures from the Office for National Statistics and flash PMI data for July both showed results above expectations but were viewed with some scepticism by analysts as the post-virus recovery continues.

The FTSE 100 closed 87.62 points lower at 6,123.82p at the end of trading yesterday.

Tensions have become increasingly strained between the US and China over the week, harming multinational stocks.

The major European markets also tumbled lower after a disappointing flash PMI for the eurozone held sentiment low, although global trade concerns remained the key driver for the decline.

The German Dax decreased by 1.97%, while the French Cac moved 1.57% lower.

Across the Atlantic, the Dow Jones nudged lower but managed to avoid the level of decline seen in Europe as trading cooled following heavy losses for the index on Thursday.

Sterling improved as it took advantage of the weak dollar. The pound rose 0.36% versus the US dollar at 1.278 and was up 0.05% against the euro at 1.099.

The price of a barrel of Brent crude oil decreased by 0.53% to 43.02 US dollars.

The biggest risers on the FTSE 100 were Tesco, up 4.7p at 220.7p, Morrisons, up 3.35p at 188.1p, Ferguson, up 118p at 6,992p, and Johnson Matthey, up 32p at 2,290p. The biggest fallers were M&G, down 10.3p at 162.9p, Vodafone, down 6.64p at 122.16p, IAG, down 10p at 198.6p, and Ocado, down 96p at 2,083p.