Trump’s Syria threat weighs on markets

Market report Perry Gourley

The UK market followed global stocks downwards as fears spread of conflict between the US and Russia.

The FTSE 100 closed down 9.61 points at 7,257.1 as traders feared an escalation in tensions following an alleged chemical attack in Syria by the Assad regime.

Jasper Lawler, head of research at London Capital Group, said: “Escalating tensions between the US and Russia in Syria has put the two nations on the brink of war.

“Donald Trump’s tweet reportedly broke national security procedure, and we think that goes some way to explain why markets have not reacted more violently. Investors have gotten so used to bombasts from Trump that there’s a belief he is aiming for ‘a deal’, even when it comes to war.”

Global turmoil also sent oil prices skywards after explosions were heard in Saudi Arabia’s capital.

Tesco, the biggest grocer in the UK, reported a 28.4 per cent jump in underlying operating profits, lifting shares by 15.1p to 225.4p. Morrisons and Sainsbury’s were also boosted by the news, with Morrisons’ stock rising by 3.4p to 228.8p and Sainsbury’s up by 1.8p to 250.4p.

However, Asos’ shares fell after investors were spooked by the online retailer’s proposals to spend up to £250 million on boosting its infrastructure to support sales growth. Shares closed the day down 170p to 6,860p.

Retirement builder Mccarthy & Stone’s shares also suffered after the company’s profits plummeted more than 50 per cent. Shares closed the day down 5.1p at 132p. The supermarket giant impressed investors with results which came in ahead of expectations and saw the return of the full year dividend. Shares in the online clothing firm fell as it said it plans to up its spending on infrastructure to accelerate its push to increase sales.