US trade war fears knock FTSE into red

Market report Hannah Burley

London’s top - flight stocks were in the red as trade fears continued to weigh on sentiment.

Markets have been knocked after Brussels said it would retaliate in an escalating trade war with the US.

The EU has warned it will slap tariffs on $ 300 billion (£ 228.5bn) of US imports if US president Donald Trump targets the bloc’s car industry.

The FTSE 100 closed the session down 0.27 per cent, or 20.2 points, at 7,573.09.

David Madden, market analyst at CMC Markets UK, said: “Traders are worried that we are edging towards a trade war and are cutting their equity positions. Volumes and market volatility are low as the US stock markets are closed for the Independence Day holiday.”

National Express shares were on the rise after the firm clinched a major deal in Moroc- co worth £ 883 million, helping it to become the countr y’s largest transpor t operator. Shares closed the session 7.4p higher at 404.4p.

SIG rose on news of appointing EY after its former auditor Deloitte was put under investigation for its work on the building supplies f i rm’s accounts. Shares were 0.7p higher at 139.1p.

Topps Tiles’ shares were flat at 63p after the retailer blamed weak consumer demand for knocking sales in the third quarter. The tiles retailer said in a trading update that like- for- like revenue fell 2.3 per cent in the 13 weeks to 1 July.

The biggest risers on the FTSE 100 included BT Group, up 6p to 229p, and Marks & Spencer, up 5.6p to 305.5p Among the biggest fallers on the FTSE 100 were Antofagasta, down 26p to 944p, and Rio Tinto, down 92.5p to 3,966p. The supermarket group has seen a slowdown in sales growth, but insisted it has the “right strategy” in place as it pushes ahead with its £ 12 billion Asda tie- up. Shares in the iron ore producer slipped up as metal prices cooled amid rising trade tensions between the United States and China.