Markets unsettled by protests and China fears

GLOBAL markets retreated as traders became increasingly anxious over relations between the US and China.

The London markets fell into the red before a briefing by President Donald Trump, with protests in Hong Kong and Minneapolis both helping to unsettle traders.

The FTSE 100 closed 157.36 points lower at 6,061.43p at the end of trading on Friday.

David Madden, market analyst at CMC Markets UK, said: “Equity traders were worried about the state of US-China relations before President Trump was due to deliver a press conference in relation to the situation.

“Animosity between the two governments has been growing lately as the US are not happy with the way the Beijing administration is treating minority communities.

“In addition to that, the Chinese government are keen to tighten their grip on Hong Kong and that has vexed the US too.”

The major European markets dropped lower during the session after investors were particularly fearful during the start of trading.

The German Dax decreased by 1.34%, while the French Cac moved 1.23% lower.

Across the Atlantic, the Dow Jones slipped but failed to match the level of anxiety shown by its European counterparts.

Nevertheless, worries over trade tensions took the sheen off an otherwise strong week, which had been bolstered by optimism regarding the loosening of lockdown measures.

Meanwhile, sterling suffered a mixed session as UK businesses awaited confirmation on changes to the current Government furlough programme from the Chancellor.

The value of the pound rose 0.11% versus the US dollar at 1.233, and was down 0.28% against the euro at 1.109.

Major multinational firms and travel firms dominated the fallers amid fears regarding the impact of global unrest and trade tensions.

British retailers and retail landlords had a stronger performance, with many pushing higher as high street stores move closer to reopening their doors again.