The Courier & Advertiser (Fife Edition)
FTSE declines on US-China trade concerns
The FTSE 100 traded lower yesterday, despite reaching a three-month high earlier in the week, as investors continued to fret about the trade dispute between the US and China.
London’s blue-chip index closed 22.40 points, or 0.32%, down at 7,071.18, while Germany’s DAX fell 1.05% and France’s CAC declined 0.48%.
Michael Hewson, chief market analyst at CMC Markets, said: “After an initially subdued start to European trading, equity markets have rolled back over into the red ahead of the weekend, bringing to an end what initially looked like being a positive week, but which ultimately has seen the risks of a renewed escalation in the US-China trade war come back to the forefront of investors’ minds.”
He said the FTSE 100 had a “slightly better time of it this week, despite slipping back over the last two days” as on Monday the index hit a three-month high thanks to “some solid results from the likes of BP, and decent gains elsewhere in the basic resource sector”.
Meanwhile the pound, which has been a barometer of Brexit since the 2016 referendum, was fairly subdued as Prime Minister Theresa May headed to Dublin to quell concerns about the Irish backstop.
Mr Hewson said: “Markets appear to be banking on the prospect that an outbreak of sanity will occur between EU and UK politicians in the weeks and months ahead, so that a ‘no deal’ scenario is avoided.
“On the evidence of the last few days ... that, on the face of it, seems a big ask”.
Sterling was down 0.13% against the US dollar at 1.293 and was flat versus the euro at 1.141 at the market close.