FTSE 100 falls to five-month low amid fears over Trump and trade
THE FTSE 100 ended a woeful week at a five-month low as traders pulled out of stocks fearing a huge escalation in Donald Trump’s trade war with China.
The US president warned that his administration was putting the final touches to tariffs on $200bn (£155bn) of Chinese goods and rocked sentiment by unexpectedly threatening a fourth round, impacting a further $267bn of products.
The latest salvo in Mr Trump’s trade war with Beijing came after markets had closed in London but investors fearing an imminent escalation had already dumped UK stocks.
The FTSE 100 has suffered its worst week in six months after investors were spooked by a rout in emerging market assets and the prospect of another round in the tit-for-tat tariffs exchange between the US and China.
Mr Trump was widely expected to give the green light to a new wave of measures following the end of a public consultation on Thursday.
With China warning that it will retaliate once an official announcement by the White House has been made, stocks in London slipped back for a fourth straight day. The FTSE 100 sank 41.26 points to 7,277.7 while US markets suffered a sudden drop on Mr Trump’s threat.
Mining and financial stocks bore the brunt of risk aversion sweeping markets.
Glencore and Antofagasta fell 8.2p to 296p and 32.2p to 744.2p, respectively, while
Lloyds tumbled 1.2p to 58.7p, its lowest level in 21 months.
Elsewhere, Enquest unveiled plans to tap investors to fund its swoop for a BP oilfield in the North Sea as the oil minnow attempts to pay down its debt pile.
The company plans to raise $138m to acquire BP’S 75pc share of the Magnus oilfield and step up drilling at the site. Enquest already owned the remaining 25pc of Magnus and hopes the deal will help reduce its debt. The discounted rights issue sent Enquest shares sliding 5.2p to 33.5p. British Airways owner
IAG clawed back from a 5.8pc loss to finish just 9.2p lower at 672p after admitting that hundreds of thousands of customers’ personal and financial details were stolen in a hack. The key risk will be to the FTSE 100 giant’s reputation and the breach has “echoes” of similar hacks at bank TSB and telecoms firm Talktalk, RBC Capital Markets told clients. Burberry shares fell out of vogue after Goldman Sachs downgraded the fashion house to “neutral” following a recent share price rally, knocking it 2p to £20.92. Firstgroup slipped 1.2p to 94.8p despite a report claiming that private equity firms, including buyout giant CVC, are circling the bus and train operator.
Pub operator Greene King’s strong results boosted peer JD Wetherspoon 40p to £12.43. Potash miner Sirius
Minerals dropped a further 1p to 26.3p, a fresh sixmonth low, after investor confidence was shredded by soaring costs at its mine in Yorkshire.