FTSE dragged as tensions over trade bite

Market report Emma Newlands

Global markets were rocked by trade tensions after Brussels warned it would slap tariffs on $300 billion (£228.5bn) of US imports.

The FTSE 100 was down 1.17 per cent, or 89.08 points, by the market close to 7,547.85, while the Cac 40 in France fell by 0.88 per cent. Across the Pond, the Dow Jones Industrial Average and S&P 500 were down by 0.45 per cent and 0.33 per cent respectively in early trading.

Fiona Cincotta, senior market analyst at City Index, said: “With trade war fears intensifying and commodities on the back foot, not even a significantly weaker pound was sufficient to lift the FTSE as risk-off moves dominated.”

The pound was down 0.63 per cent against the dollar at $1.312. Against the euro, sterling was up 0.27 per cent at €1.131.

British software giant Micro Focus International was the top riser on the FTSE 100 after it said it was selling its Linux operating system business for $2.5bn. Shares climbed 20p to 1,343.5p on the news.

Tesco’s shares were down 0.6p to 256.1p after saying it will form a “strategic alliance” with French retailer Carrefour as part of efforts to cut prices and get a leg-up on competitors.

And mattress company Eve Sleep’s market value more than halved after the firm announced the shock departure of its chief executive and said it will not hit profit targets. The firm’s shares plummeted 39.5p to 29.5p.

The biggest risers on the FTSE 100 included Ocado, up 14.5p to 1,042p, and Reckitt Benckiser up 83p to 6,322p, while the biggest fallers included Smith & Nephew, down 56.5p to 1,341.5p, and NMC Health, down 132p to 3,450p. The British engineering firm yesterday upped its revenue guidance after seeing betterthan-expected trading in the second quarter. Shares plunged after the gambling software firm warned that “aggressive pricing” by new competitors in Asia was likely to knock profits.