FTSE caught in Us-china feud crossfire

London’s top flight tumbled as global economic outlook darkened following the latest shots fired in the Us-china trade dispute.

The FTSE 100 dropped 83.65 points to close at 7,185.3, with traders uneasy after China threatened to restrict the export of rare earth minerals to the US.

David Madden, market analyst at CMC Markets UK, said: “Beijing has hit back at the US and the ball is now in [President] Trump’s court. Trade tensions have certainly gone up a notch, and investors are running for the hills.”

The pound dipped 0.24 per cent to $1.263, but was flat on the euro at €1.134.

In company news, a review into Non-standard Finance’s £1.3 billion hostile takeover bid for doorstep lending rival Provident Financial was launched by Britain’s competition watchdog to determine whether a deal would lead to a substantial lessening of competition. Shares in Non-standard Finance were down 0.35p at 48.2p, while Provident fell 22.9p to 449.7p.

Housebuilder Telford Homes reported a 13 per cent fall in annual profits as it shifted focus to the build to rent market and battled against a “subdued” London market. The stock closed 14.5p lower at 288.5p.

Sir Martin Sorrell’s marketing group S4 Capital saw like-for-like revenues jump 41 per cent in the first four months of 2019, the company said ahead of its annual general meeting. Shares closed flat at 166.5p.

Meanwhile, rail app business Trainline confirmed plans to raise £75 million in capital to fund its expansion plans when it floats on the London Stock Exchange next month.